Is the Economy As We Know It Over?

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The economy as we know it is over, according to Federal Reserve Chairman

A Week Of #GoodNews

Federal Reserve Chairman: Economy as we know it could be over because of COVID-19 fallout

The coronavirus pandemic has accelerated a number of trends and caused the brakes to be pumped on others – and it’s also exposed how systems are broken. Such has been the speed of change, it is clear to the Federal Reserve Chairman, Jerome Powell, that new processes and tools are required. CNN Business notes that Mr Powell said on November 12: “We are recovering, but to a different economy.” In a virtual panel discussion at the European Central Bank’s Forum on Central Banking, he continued: “Even after the unemployment rate goes down and there’s a vaccine, there’s going to be a probably substantial group of workers who are going to need support as they’re finding their way in the post-pandemic economy, because it’s going to be different in some fundamental ways.” We agree, and have written about the need for new solutions throughout the year (like here, for example).

Platform economy can unlock prosperity for billions of workers – here’s how …

So what ways will economic systems evolve? Whatever, digital solutions are likely to play a critical role. “The platform economy could provide a boost to employment during the pandemic recovery period,” suggests an article on the World Economic Forum. It argues that “the rise of the ‘platform economy’ is one recent development business leaders should be looking hard at in the post-COVID recovery period. Matching the skills of workers to the needs of users, it has the potential to streamline business processes for employers, empower employees and hugely boost the consumer experience – if it is implemented wisely.” Naturally, GoodDollar supports digital innovations and is also keen to increase access to financial tools. As such, our basic income project is built on blockchain – because it can be decentralised and used on a global scale.

Bitcoin definition evolving – and that’s a good thing

Is bitcoin an asset, a commodity, or a currency, asks Decrypt. “With the world’s largest cryptocurrency on a steady rise, it’s the perfect time to look again at where [it] sits in the eyes of those trying to define it,” the piece starts, and concludes that given bitcoin’s trading volume “most regard it as a commodity over a currency”. The piece adds: “The future of money is changing … the definition of bitcoin in the global economy is changing … and that’s not necessarily a bad thing as the world shifts to a post-pandemic economy and begins laying the foundations to answer ‘what is the true value of money’.” Similarly, we expect GoodDollar to evolve and we look forward to you helping with that development, as set out in our white paper.

Central bank digital currency will replace cash – Deutsche Bank

The largest banking institution in Germany, Deutsche Bank, is certain that central bank digital currencies (CBDCs) are the future – and will replace cash, sooner rather than later. CoinTelegraph explains how Deutsche Bank Research, the bank’s research arm, published a report on economic estimations and proposals “to assist global economies hit by the coronavirus pandemic” on November 10. It continues: “In the report, Deutsche Bank states that the ongoing COVID-19 pandemic has accelerated the ‘digital cash revolution’. According to the bank, this revolution will eventually enable CBDCs like China’s digital yuan or Sweden’s e-krona to replace cash in the long term.” This news comes as those positioned on the right of the political centre are increasingly willing to explore the possibilities of implementing a basic income – all over the world, and certainly in Germany, reports international broadcaster Deutsche Welle (DW). At GoodDollar we know that reducing wealth inequality requires a solution across the political divide – and is even possible without a central authority, which is what we are trying to achieve (see our roadmap here).

A Washington town has started printing its own currency this year – will it work?

The Hustle takes a deep dive into Tenino, a small town in Washington with a population of less than 2,000, which has started printing its own currency during the coronavirus pandemic. Wooden dollars that can only be spent by local businesses have been issued. The GoodDollar team knows all about the challenges of encouraging the adoption of a new currency – and with your help and support we can all win (read about our value adoption and network effect here).

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