We live in very interesting times to say the least. Financial innovation using new technology has been percolating for years. The advent and rising popularity of Bitcoin, and more importantly its underlying blockchain technology, has thrust the question of our world’s financial future into the spotlight.

Between 2014 and mid-2016 an increasing number of people questioned how FinTech would impact the global economy as the trend toward globalism marched ahead unabated. What a difference nine months makes. Brexit. President Trump. Looming elections in France and Italy that could swing those two nations into a posture of leaving the European Union.

All of these have given pause to the idea that we were destined to a world with a more centrally controlled and consolidated monetary system. Suddenly national sovereignty is popular again. National sovereignty has historically brought with it sovereign currencies.

Over the last 45 years or so (post-Bretton Woods) one recurring problem has been that of creating an effective mechanism to manage both the exchange rates between sovereign currencies, and the actual exchange of those currencies between entities. One of the answers was to consolidate currencies to simplify the number of variables in the global monetary system equation.

Is FinTech a Better Answer?

What is just now entering the conscience of the world’s citizens is that money is more an idea than a thing. We have seen it in a static fashion for decades. US dollars. Canadian dollars. Euros. Yuan. Yen. We identify these as things. But money as an idea is making a comeback. Bitcoin was created on a set of ideas and principles. The coin itself is the product of those ideas.  It’s use has become widespread enough that in some areas, you can actually live on it – at least for awhile.

21 Things I Learned About Bitcoin From Living on it For a Week

This is just the beginning. Exchange rate platforms for alternative and crypto currencies will be developed using technology and the blockchain. This will give much needed liquidity and stability to this emerging monetary ecosystem. Silver and gold bullion can and will play a part in this world. They could be money. They might back a currency fully or partially.

Or, gold and silver may play another yet undefined role. But their 5000 year history as being an intimate part of the world monetary system will not vanish due to technology. Rather, technology will only enhance their role as it makes access to these time-tested assets easier, whether as part a currency, accumulated as savings, or as a means to insure your retirement.

For those following trends in global currencies, one has emerged that has significant long term implications. That is the move toward purely digital currencies. This trend has gained momentum over the last several months.

India seems to be leading the way. One of the questions that obviously must be answered is how to implement a digital currency and on what platform. Surprisingly, over the past two years Bitcoin’s blockchain technology has emerged as a primary target for further study by the world’s central banks.

In fact, the Reserve Bank of India released a white paper last month outlining a process by which the nation could implement blockchain technology across their currency and banking industry. In it they noted:

“In a bid to evolve towards a cashless society, many central banks around the globe including Canada, England, Sweden, and Netherlands have started exploring the use of BCT [blockchain technology] for digitizing their currency, and many more are converging to the idea. From a technological perspective, we feel that BCT has matured enough and there is sufficient awareness among the stakeholders which makes this an appropriate time for initiating suitable efforts towards digitizing the Indian Rupee through BCT.” (emphasis added)

It is an interesting turn of events that Bitcoin, which was viewed by global central banks with great skepticism, is now seeing its underlying technology being fully embraced by them. This is largely the product of a booming FinTech industry which is forcing everyone to rethink the role of money, along with its structure and delivery systems.

When dealing with something as powerful and as intimately tied to our lives as money, there are valid questions and concerns that arise.

• How will the emerging monetary paradigm be structured in a way that creates healthy ethical boundaries which will insulate the system from abuse?
• How will basic privacy rights be maintained if every transaction must pass through an electronic delivery system?
• How reliable can access to such a system be made?

These questions and more mean silver and gold bullion can, should, and in some way will play a role in this newly emerging monetary paradigm. Exactly what role they will play is yet to be seen. However, as we transition into this new way of defining and handling money, it seems apparent that their place in every person’s portfolio of savings, investment, and currency holdings is more important than ever.

P.S. It may be a good idea if your silver and gold dealer is aware of these trends and is positioned to help you navigate them. Just sayin’.

(photo credit Ramnath Bhat under cc 2.0)

As promised, President Trump has taken an ax to the regulatory burden that many feel has hindered economic growth. His actions have been swift and far reaching. It’s too early to tell how much of an impact changes in financial regulations will have because the scope isn’t yet known. However today he took a major step by halting the DOL fiduciary rule and ordering a sweeping review of Dodd-Frank.

If you are for less governmental regulation then the trend is your friend as they say in the investment world. If regulatory rollbacks reach into the world of FinTech, it will open the door for major structural financial system reforms. And that we believe is a very good thing.  Streamlined and low cost access to financial and investment instruments is good for everyone.

At OWNx, we see these trends taking shape. Our streamlined process for owning gold and silver bullion within a self directed IRA has set the industry standard for cost effectiveness, flexibility, and control. In other markets, thousands of companies are disrupting the financial world with their own innovations. This leaves ahead of all of us an exciting future that will help put the power and control of our financial wellness back into our own hands.

Much of the rest of the world is confused about whether we will continue to use cash or not and what will define our future financial system. The answers may be yet unknown, but they are just over the horizon. OWNx will be there to provide you with powerful tools to manage your gold and silver assets with a variety of choices that fit your lifestyle.

(photo credit Ben Woosley)