TORONTO, Canada — November 16, 2017 —Ideation Centre at SAP Canada, a team of industry experts and digital thought leaders, has released a futurist whitepaper that proposes a new blockchain-powered monetary system running on what could be inflation-proof, bubble-resistant digital currencies.
In The Future is Money, user experience designer James Zdralek introduces the theory of a system of trade he terms ‘futures-backed currency’. In this financial system, the value of money would be based on agreed-upon future deliveries of products and services, rather than on physical goods like gold or on government law, as is done with fiat money.
“A futures-backed currency would separate interest, inflation and economic growth from government finances and international banking, returning them to their natural functions. This would make the financial system more stable, doing away with the inflation of traditional currencies like the Euro and the US Dollar, the fluctuating valuation of Bitcoin, and the deflationary spirals associated with hoarding,” said Zdralek.
The emergence of blockchain and smart contracts is making it possible to trade currencies in such a way, and on a large scale, Zdralek argues. Blockchain, serving as a decentralized authority that holds people accountable to each other in exchanges of value, removes the need for intermediaries that ensure trust. Using smart contracts, agreements between buyers and sellers can be written in code, allowing trades to self-execute across the blockchain.
The Ideation Centre at SAP Canada’s mission is to help Canadian leaders develop a deeper understanding of the digital forces driving the economy today. Through whitepapers, videos and other content, it brings forward made-in-Canada fact-based arguments that challenge Canadian decision makers to think about the potential of digital-led organizational shifts that were not possible in the past.