Cash is dead, who will be the new king of the payment world?

The cash will go away for smartphone payments, the Chinese model will allow cheap loans for privacy and the dollar may lose its debit in favor of Bitcoin or RMB. What will our money look like in 2030? A special project

So what's actually going to be here for another decade? (Photo: ShutterStock)

Bills of shekels (Photo: ShutterStock)

A new bank was born

In September 2019, a dramatic event took place in the local finance world. For the first time in four decades, the Bank of Israel approved the establishment of a new bank in Israel. The license was granted to a digital bank led by Marius Nacht, founders of Check Point and Amnon Amusage, founder of Mobilai, and currently senior vice president of Intel. Nacht and Amusement are two of the local high-tech grants, while the last bank established in Israel was Bank of Agudat Israel. The difference between the identity of the last two banks that received a license expresses the way Israel has gone in recent decades and also represents a global trend.

The Bank of Israel's decision was not made in a vacuum. Hedva Bar, the bank supervisor who will soon retire, told Globes about the background. "A few weeks ago," she said, "the Governor, Prof. Amir Yaron, and I, returned from a work visit to India. There are aspects in Israel we are lagging behind - the payment system is one of them. Non-bankers, which allow money transfer, such as Wetsap, Google Pay and also a local mobile company that provides payment services. "

What will the money look like in 2030? The answer can be found in India, China and other countries that are gradually giving up cash for digital wallet use. The field where banks and investment houses used to play has opened wide and is currently rivaled by tech giants and young, lean and nimble tech companies who dream of changing insurance and payments.

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Digital wallets used for payment are considered relatively small money. The big money is in financial services, a term that refers mainly to the banks' main business - loans. How big is this business? In July of this year, Bloomberg reported that Alibaba founder Digital Bank and Asian rich man Jack Ma had lent $ 290 billion to the small business sector in its four years of existence.

This digital venture is thriving to a large extent thanks to the civil rights violation of China's residents. The ability to make huge loans to unsecured borrowers is based on the ability to track payment history and monitoring about 3,000 parameters, including social network activity.

Without restrictive privacy legislation, the bank has been able to provide loans to some 16 million small companies, at an average rate of just one percent, and to pour fuel barrels into the Asian giant's growth engine.

The financial revolution that China is undergoing is in parallel with the West's discussion of privacy and regulation. One example is Libra, the cryptographic currency that Facebook launched with a coalition of corporations, which is currently in the fog.

Another process that has occurred over the past decade is the growth of Bitcoin. The first cryptographic currency has gone nowhere. On the contrary. According to data released in May, the number of Bitcoin transactions broke the record high during the November 2017 hype. The rage prophecy over Ponzi's fraud and claims that "the banks did not inherit" emerged as a sliver of reality.

Where is Bitcoin going? This past year, an article was written by a writer named PlanB who estimates that in the near future Bitcoin will win gold and become the most stable and sought-after asset on earth.

The Bitcoin was founded by Satoshi Nakamut and a pen name of a man or group of people no one knows who they are. As time goes on, it becomes clear that Nakamut and, whatever it is, are ahead of his time. Bitcoin offers an alternative to the existing debt-based method. This past month, he raised another $ 3 trillion and climbed to a startling $ 188 trillion level.

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Bitcoin instead of the dollar?

The financial arena is bubbling and the future is awash. Will the Bitcoin or Chinese Yuan (Renminbi) Currency Take the Dollar Debut? Will the tech giants take advantage of the banks or will they work alongside them and offer users economic actions we haven't yet known?

Another question is whether the changes will occur gradually or will they result from a terrible crisis? Either way, the Pur has fallen. The money is on the table and there is a public debate around it and that fact is a kind of revolution.

In recent decades, the attitude of the general public to the economic and monetary system has been largely natural. In the not too distant past, the foundations of the monetary system have been the subject of public debate and an important political issue. There is even a claim that through the yellow stones Dorothy walked in the book "The Wizard of Oz" is actually a sophisticated economic parable.

Will the masses discover what money is built for and how it flows over the next decade, and consequently take to the streets? hard to believe. However, it is not certain that this is necessary. As long as the information flows freely, we hope that it will allow the system to fix itself naturally.

*** Full disclosure. Marius Nacht is a former spouse of Anat Agmon, a controlling shareholder of "Globes".