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Archive for the category “Economics”

Money Goes Digital

Well, Canadian money at least…

“Wait!”, you say, “Money has been digital for a while!” Oh no, my friends. While money has been represented in your bank accounts and through purchasing items as a digital number, the value has actually been liquidated in a paper (and very tangible) form.

With the current economic woes, the Canadian central bank has decided to go a new direction. MintChip. The difference between it and other predecessors such as BitCoin are that MintChip is based strictly on actual Canadian currency, rather than some decentralized digital currency.

In order to gain some traction, they have proposed a challenge to developers. The challenge is to create a software infrastructure showing how best MintChip can be utilized. Basically, they are skipping all the ad campaigns and market testing in order to push their product out faster and with less cost to them. I, personally, am okay with the fact of relying on competition and human ingenuity, but what does a digital currency mean for the future of our currency (or at least Canada’s currency)?

Well, as stated by it’s founders MintChip reaches several areas that are currently either inaccessible by today’s currency or that have major faults. With MintChip, you have an online store of money. This is different from current methods as it does not rely on transfers, credits, etc. You simply purchase goods or services based on the amount of your MintChip stockpile and it’s instantly paid for. This reduces a lot of areas where there are fees from bank transfers.

Don’t go handing in all your paper at once, though. This idea has been run through the gauntlet several times and, so far, has failed to catch on. Only time and application will tell if MintChip will survive to see the light of day. Also, I might add, that MintChip gets its name from its MicroSD proposed format.What’s that you say? Money carried around on a MicroSD card or accessed from a remote Chip? You betcha. (You might want to throw out those pants with the holes in the pockets…)

In my opinion, we’re all heading that way regardless. It’s only a matter of time before we stop wasting materials to print currency and transfer them totally into the digital realm. I believe it will then only be a matter of time before we are on one world currency. I wouldn’t hold your breath on that one though. Not with all the inflation and deflation of individual countries. Getting the world on the same page is not an easy task, nor one that has EVER been tackled.

Still, MintChip’s progress should be interesting to watch.

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