You may have seen my shameless plug of the new book Intelligent Money: When Money Thinks For You … well, here’s another one. After a podcast with my friends in Finland, who quite like my thinking, Pål Krogdahl wrote up his thoughts on our chat on LinkedIn. I really enjoyed his summary, so here it is. Meanwhile, you can get the book on Amazon and all good book sites, as well as on Audible and similar.
Listen in here:
- https://www.kobo.com/sg/en/audiobook/intelligent-money
- https://play.google.com/store/audiobooks/details/Chris_Skinner_Intelligent_Money?id=AQAAAEAyOQx5LM
- https://books.apple.com/us/audiobook/intelligent-money-when-money-thinks-for-you/id1761325146
Hear or watch the podcast here:
- 🎬 YouTube - https://lnkd.in/dVHcpiF3
- 🎧 Spotify - https://lnkd.in/dNgVCHyN
- 🎧 Apple - https://lnkd.in/dEFMUsDT
Read and buy here:
Find out more here: http://www.moneythinks4u.com
The Evolution of Money: From Dumb to Intelligent
We’ve all heard the saying that money talks, but what if it could think? Traditionally, money has been a passive tool—a coin, a banknote, or even a number on a screen. But in Chris Skinner’s latest book, he argues that the future of money is much more dynamic. Imagine a world where money doesn’t just sit in your account waiting to be spent, but actively helps manage your finances, anticipates your needs, and even makes decisions on your behalf.
Chris’s vision of intelligent money isn’t just about adding a few bells and whistles to our current financial system. It’s about fundamentally changing how we interact with money. Instead of being something you have to manage manually, money could become an intelligent partner in your financial journey. For example, your money could automatically pay bills, invest in the best opportunities, or even help you save for future goals—all without you having to lift a finger.
But is this vision realistic? As Ville and I discussed with Chris, the idea of money that “thinks” for you brings up a lot of questions, particularly around trust and control. Who’s really in charge—us, or the algorithms? And how do we ensure that this intelligent money is working in our best interests?
Programmable Money and Central Banks: A Complex Relationship
One of the most interesting parts of our conversation was when we dug into how this idea of intelligent money ties into the work being done by central banks around digital currencies. Central banks are exploring digital versions of their currencies (like the digital euro), but they’re cautious about the implications of programmability. As Ville pointed out, central banks often steer clear of terms like “programmable money,” preferring to talk about “conditional payments” to avoid undermining the fungibility of currency.
The issue here is that traditional money is fungible—every euro is worth the same as every other euro. But if you start adding programmable features to money, it could potentially lose that characteristic. For example, could you have money that can only be spent on certain things or at certain times? How does this affect our broader financial system?
Chris shared his insights into how we might strike a balance between the flexibility of programmable money and the stability offered by traditional, centralized systems. He introduced us to the concept of “hybrid finance” or “HiFi” where the best aspects of decentralized and centralized finance come together. In a hybrid system, you could have the security and trust that comes with central bank-backed currencies, while also enjoying the innovative possibilities of decentralized technologies. The key to all this is in the governance. As Chris points out "you need governance, but that governance does not necessarily need to come from the Government or Central Bank".
Intelligent Money: A Double-Edged Sword?
While the idea of money that can think and act on our behalf is certainly exciting, it also comes with potential risks. During our chat, we discussed the importance of financial literacy in this new landscape. As Chris pointed out, even though we have the technology to make money smarter, the average person might not fully understand how these systems work—or the risks involved.
One of the key challenges we face is ensuring that people are equipped to navigate this more complex financial environment. As money becomes more programmable and intelligent, there’s a danger that those who don’t fully understand the technology could end up at a disadvantage. Chris emphasized that while intelligent money could take on much of the burden of financial management, it’s still crucial for individuals to stay informed and make conscious decisions about their finances.
Ville raised another important point about privacy. As money becomes more embedded in our digital lives, the line between convenience and surveillance becomes increasingly blurred. Who gets to see the data generated by our financial transactions? And how do we protect ourselves from bad actors who might exploit these systems?
The Future of Money: Unconscious Banking?
As we wrapped up our conversation, we concluded that we are heading towards a future where banking is invisible! We discussed the concept of “unconscious banking,” where financial services are so seamlessly integrated into our lives that we hardly notice them. Imagine a world where your money is automatically managed for you, where payments happen in the background, and where you no longer have to worry about the day-to-day tasks of financial management.
But while this vision of the future might sound appealing, it also raises important questions about autonomy and control. As Chris pointed out, even in a world of intelligent money, the key challenge will be ensuring that these systems truly serve the needs of the people using them. It’s about finding the right balance between automation and human oversight—so that while money might be doing the thinking, we’re still the ones calling the shots.
Looking Ahead: A New Era of Finance
Our conversation with Chris left me with a lot to think about. The idea of money that can think and act on our behalf is both thrilling and a bit daunting. As we move towards this new era of finance, it’s clear that we’ll need to navigate a range of challenges—from ensuring privacy and security to maintaining financial literacy in an increasingly complex world.
One thing is certain: the future of money is going to be very different from what we’ve known in the past. Whether it’s programmable money, hybrid finance, or even the concept of unconscious banking, we’re on the brink of a revolution that could change everything about how we interact with money.
As always, we’re here to explore these ideas with you, our listeners. So, if you’re curious about where fintech is headed, or if you just want to hear more from the brilliant minds shaping the future of finance, stay tuned. There’s a lot more to come in this season of Fintech Daydreaming.
Thanks for joining us, and until next time—keep dreaming about the future of fintech!
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
