How Might Cell Phone Money Change the Financial System?
AbstractThe emergence of cloud banking in developing economies from billions of cell phones transacting both legal tender and informal units of accounts has created a need to reconsider habits of thinking about the nature of money and banking in advanced societies. The dysfunctional nature of modern money and banking is revealed by considering cell phone units of account based on four historical forms of money: (i) the current form of synthetic or “fiat” legal tender that can earn interest, (ii) fiat money that does not earn interest but has a usage fee, (iii) “free-money” issued privately with a usage fee, and (iv) “natural” money redeemable into specified goods and/or services with a usage fee. The value of a “green” form of natural money, redeemable into units of renewable electricity, becomes fixed by the investment cost of generators to create an inflation resistant unit of account. This paper identifies green dollars as offering a competitive medium of exchange for the “invisible hands” of (i) investors, (ii) Islamic economies and businesses, (iii) green voters, (iv) governments seeking to reduce the need for carbon taxing or trading, and (v) those seeking a reserve currency in case the financial system fails.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Capco Institute in its journal Journal of Financial Transformation.
Volume (Year): 30 (2010)
Issue (Month): ()
Contact details of provider:
Postal: 120 Broadway, 29th Floor New York, NY 10271
Phone: +1 212 284 8600
Web page: http://www.capco.com/
Cost carrying money; Electronic-money; Financialization; Free Banking; Islamic Banking; Natural Money;
Find related papers by JEL classification:
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- G20 - Financial Economics - - Financial Institutions and Services - - - General
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett).
If references are entirely missing, you can add them using this form.