You might think, reading this: Now at Starbucks: Buy a Latte By Waving Your Phone – NYTimes.com, how is this all that different? Isn’t it just another form of gift card? As for now it is. But what is happening to money is twofold. One, the means to produce money is being widely distributed. Once you needed institutions to manage and create money: governments and banks. Then corporations came up with the means of creating money using their own credit companies. Now smaller and smaller companies will be able to create money using apps like this. Two,the money is now digital. It is not dependent on paper currency or credit cards with smart technology: it is digital. And once it is digital, you will eventually see developers coming up with exchanges and other ways to digitally transform that money into other things, including more money.
The money supply is already alot more complicated than it was decades ago. It is going to get even more so. Welcome to the new money.
(Image from the nytimes.com)