The Incoming Currency War
So... digitisation certainly has a lot of disruption potential. I would frame it differently though... I also don&#x27;t think it&#x27;s the only factor.<p>First, digitisation has already happened. Most money has been digital for a long time. The full consequences of digitisation just haven&#x27;t materialised yet. Centralisation of the banking &amp; financial services world, regulation, cascading structure (clearing houses, etc) and general conservatism buffered the change.<p>I would argue that large parts of the financial system actually failed 13 years ago. Bailouts restored them. Without bailouts, many large institutions would have become defunct and a new generation would have taken their place. This change is occuring regardless, just more slowly. Robinhood&#x27;s upcoming IPO is an example though possibly a trite example.<p>Cryptocurrency (also crypto-stocks&#x2F;bonds&#x2F;etc.) role is still anyone&#x27;s guess. I reckon it creates an opportunity to bypass the old, evolved &quot;structure&quot; of the financial industry. How clearinghouses work, who controls them. All that immovable, weird, invisible stuff determining how financial markets work may finally change.<p>Also... Monetarism seems to have ended. That&#x27;s a big deal and its hard to guess where this leads. Fiscal and monetary policies are no longer bound by the same constraints, and it&#x27;s not obvious what the new constraints are. There isn&#x27;t an obvious monetarism replacement.<p>The end of monetarism is most alarming for the eurozone. The whole system is basically premised on it. Most plausible successors to monetarism treat fiscal and&#x2F;or tax policies as part of the monetary system in some way. The eurozone has a hard structural separation between these.<p>In any case, monetary &quot;revolutions&quot; aren&#x27;t that uncommon. They happen every couple of generations. We&#x27;re due.