While we’re not ready to rediscover the classic ’80s REM hit, “It’s the End of the World as We Know It”, there are warning signs that we may be nearing the end of physical money. as we know it.
According to Deloitte’s Global Blockchain Survey 2021 of more than 1,200 executives from multiple industries, including the financial services industry (FSI), 76% of FSI respondents agreed that we will no longer use physical money here. 10 years. Instead, they predict that we will be using blockchain and various forms of digital currency.
Additionally, 73% of ISP executives surveyed said they would be at a competitive disadvantage if the industry didn’t start embracing blockchain and digital assets. In case you’re curious, the two largest blockchain-based digital assets by market cap currently are Bitcoin and Ethereum, respectively.
“Deloitte’s 2021 Global Blockchain Survey shows that the foundation of banking has fundamentally been overtaken and that players in the financial services industry need to redefine themselves and find innovative ways to create economic growth in the future of the world. ‘money,’ Linda Pawczuk, director, Deloitte Consulting, and global and U.S. leader in blockchain and digital assets, said in a press release.
An example of this disconnect between ISP and the growing use of programmable money is Twitter’s recent announcement that it will now offer Bitcoin tipping to its users. This seemingly innocuous social media novelty is likely to be very disruptive to the ISP in the short and long term.
While not the largest social media platform, Twitter has over 360 million monthly active users. Many of these users are global influencers with a significant number of followers. Thanks to its network effect, it’s reasonable to expect a fairly rapid adoption by influencers and their followers of the free Twitter service to instantly share and send programmable money anywhere in the world.
An accelerated spread of Bitcoin adoption will be a direct result of these free, Twitter-enabled digital payments on its platform, simultaneously accelerating the fall in physical fiat.
“As the disruption of digital assets rapidly changes the market, global financial services are striving to reinvent themselves, building businesses to generate new revenue streams,” said Richard Walker, Director, Deloitte Consulting and Blockchain Leader of the financial services industry in the United States, in a press release. . “Opportunities for real change in several areas of global financial markets exist for players exploring new ways to harness the power of blockchain technology and digital assets to reinvent their business models. “
If these ways of “reimagining” the tired ISP business model do not begin soon, their inertial recession into insignificance is almost assured. It’s almost like you can hear REM frontman Michael Stipe warming up his voice for a final ISF encore.