Money in the 21st Century: Cheap, Mobile, and Digital

The future is in cryptocurrency, and America should lead by developing one, according to this lucid and comprehensive guide to digital currency and central banking. Economist Holden (From Free to Fair Markets) fears that if America cedes leadership in establishing a global digital currency to China or private interests, the U.S. dollar will lose its hegemony as the world’s reserve currency. Among other recent developments, Holden notes that Mark Zuckerberg has proposed that a corporate consortium led by Facebook develop the private digital currencies Libra and Diem, that the European Union plans to have a digital currency by 2025, and that U.S. treasury secretary Janet Yellen, who declined to support Zuckerberg’s proposal, began outlining plans for a U.S. digital currency (Govcoin) in 2022, though whether it will be adopted as the international standard remains to be seen. As background, Holden provides an excellent overview of the current global monetary system, including mobile money and banking, cryptocurrency, and how central banks control the supply of money. Technical concepts are explained with clarity and detail, though some readers will remain skeptical of Holden’s contention that a transition to mobile, digital currency will be better for the poor and unbanked. Still, this is a forceful and well-articulated vision of the future of money. (Jan.)