The Future of Money is an overview of the current state of monetary systems and a review of how new financial technologies are interrupting as well as increasing the chances of changing current monetary architectures.
I just finished reading the Kindle version of this book, and found it to be exceptionally clear, well-written, and extremely thorough. I also loved The Ascent of Money by Niall Ferguson, Naked Money by Charles Wheelan … those are definitely equally good. What sets this book apart is that it starts with great explanations of the definition of money, the different types of money (eg. "outside money", "inside money" etc.), then explains Bitcoin, the current crypto craze, central bank digital currencies and a lot more.
For most people, says Eswar Prasad, money still means physical cash printed by a sole, public authority. Yet that is a surprisingly modern case: only a century ago, private currencies competed with government-issued banknotes. It may be short-lived, too, as cash gives into the digitalization of finance and new means of payment take over. This big bang will have huge impacts on states, people and companies.
That cash is declining may not surprise readers. Many will bank from laptops and make payments on their phones. One of the first financial technology breakthroughs happened centuries ago, when China introduced paper currency to replace metal coins, which were heavy and scarce. Yet this time is different, Mr. Prasad insists. Previous changes improved existing systems, he notes. The end of cash — likely within a decade or two — is revolutionary.
Mr. Prasad gives us a vivid picture of the evolution of money. Anyone interested in an excellent review of the concept of money, the current trends and likely future direction should read this book. Kudos and thanks to Professor Prasad.
