Reading Response 4-3

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Among Brunton’s discussion on the emergence of “digital cash”, he coined the term as creating an “object” that is “superficial” to transact through networked computers and easy to verify (Brunton, 2019). At the same time, it must be provable of what it appears to be, but impossible to forge or duplicate, and have the ability to carry the information “about what it is and what it is worth, without generating any information about how it is used or by whom” (Brunton, 2019). This discussion about the revolution of currency/money brings us back to module 1’s definition of “revolution”---- a blend of both traditional and new perceptions. Not only has the value and use of money increased, it also continues to function as a way of “keeping track of obligations between individuals and governing institutions and, ultimately, as a vector of state power” as it has been (Swartz, 2018). Considerably, we can see that the “commodity theory” of money remains present among both neoclassical economists and Bitcoin’s digital metallists (Swartz, 2018). However, Allaire criticizes this “state theory of money” as invalid due to the inflations related to fiat currency (Allaire & Ferguson, 2023). The pandemic has led our economy to enter a state of recession with Japan being the first and London just recently declaring (Abdulla & Bruce, 2024). Are these adverse consequences caused by the fiat currency and the monetary system? Considering the emergence of the “techno-economic imaginary”, it is consistent with Allaire’s criticism of the state theory of money being a “highly problematic theory” (Allaire & Ferguson, 2023). Using China's monetary system as an example, all transactions are ensured to be directly surveillanced under the central bank (Allaire & Ferguson, 2023). As Allaire states, if the state money theory is causing these adverse consequences of recession, inflation etc,. Why hasn’t China’s economy experienced these effects? China’s system using Alipay and Wechat is already a success, and as Allaire argues, the Western countries are incapable of following the Chinese path, but why is that? Is this because of our ideals of a free market, free society? The emergence of the "techno-economic imaginary" is highlighted as a consensus in today's financial system advancement and a main factor in geopolitics. The global race to develop digital currencies, with Facebook and China's RMB at the forefront, signifies a paradigm shift where technological and economic visions converge (Evernote, 2021). Russia’s intention of adapting China’s banking infrastructure and the currency RMB increases the acceleration of the “decline of the dollar’s global dominance” (Morris, 2023). With China’s existing banking infrastructure and Beijing’s current move on designing a digital currency, will China out innovate the Western country (Evernote, 2021)? Although Facebook has already announced its digital currency moving forward, analysts believe it is rather a “scare” to competitors. It is interesting to spectate the future of our financial system, the adoption of cryptocurrency in states, and whether a global currency revolution will occur. References

Allaire, J. (Host). Ferguson, N. (Guest). (January 26, 2023). Ep 77: The Evolution of Money with Neil Ferguson. The Money Movement with Jeremy Allaire. Audio Podcast . https://podcasts.apple.com/ca/podcast/ep-77-the-evolution-of-money-with-niall-ferguson/ id1512272543?i=1000602650528 Abdulla, S., & Bruce, A. (2024, February 15). U.K. becomes 2nd G7 economy to fall into recession - national . Global News. https://globalnews.ca/news/10296402/uk-economy- recession/#:~:text=WATCH%3A%20There%20are%20now%20two,the%20United %20Kingdom%20and%20Japan . Brunton, F. (2019). Digital Cash : The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency . Princeton: Princeton University Press. Morris, D. Z. (2023, May 11). Bitcoiners were right: Weaponized finance just created a post- dollar planet . CoinDesk Latest Headlines RSS. https://www.coindesk.com/layer2/2022/03/02/bitcoiners-were-right-weaponized-finance-just- created-a-post-dollar-planet/ Swartz, L. (2018). What was bitcoin, what will it be? the techno-economic imaginaries of a new money technology. Cultural Studies , 32 (4), 623–650. https://doi.org/10.1080/09502386.2017.1416420 The Future of Money: Cover Story Story - ProQuest . Evernote. (2021, June 7). https://www.evernote.com/shard/s714/client/snv?isnewsnv=true&noteGuid=fc5c3c72-e323- 4264-bcb1-d76236af7149&noteKey=eec70a2a9da96bf707fb72d7d0f13a59&sn=https%3A%2F %2Fwww.evernote.com%2Fshard%2Fs714%2Fsh%2Ffc5c3c72-e323-4264-bcb1- d76236af7149%2Feec70a2a9da96bf707fb72d7d0f13a59&title=THE%2BFUTURE%2BOF %2BMONEY%253A%2BCOVER%2BSTORY%2BSTORY%2B-%2BProQuest

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