Innovation of Money
As traditional methods of banking, spending, shopping, saving, and investing are changing, How To Impact's second insight Breakfast took a look at the Innovation of Money.
We chaired a panel discussion with Rick Chen of number one Australian crowd-funding organisation Pozible, Joe Cincotta of social & tech specialists Pixolüt and Jonathan Kelly, Head of Retail Services at PayPal.
The discussion brought out some timely insights into the behavioural change driving Bitcoin, crowd-funded investment and new digital retail platforms like Beacon.
H2i MD, Matt Whale summarised: "We are clearly at a 'tipping point' for behavioural change in the innovation of money, as technological and social platforms open up new investment pathways, integrated retail experiences and new degrees of mobility and access. What is evident is that the prevailing acceptance level of risk is growing, but with it is a growing requirement of trust; trust in the transparency and privacy of the transaction."
Jonathan Kelly and Rick Chen were crystal clear on this: "We would never betray our customer data", stated Kelly. Chen went further: "I am horrified by any IT companies who carve up their client's data -- that would never be a viable business model in crowd funding".
Whilst the panel reserved judgment on whether Bitcoin will successfully migrate from an investment currency into a true transactional currency, they remained optimistic that it would succeed where Facebook credits failed. Joe Cincotta pointed out, "Bitcoin is a genuine digital currency, whereas Facebook credits and other virtual currencies that do not live outside of their own ecosystems are not."
Whatever happens, innovators are going to have to overcome resistance from institutions. Joe added: "The credit card companies are heavily invested in point of sale transactions, the banks have a firm hold on currency transactions and the investment market is well regulated." Chen summarised, "ASIC have a choice to make, whether to unlock the potential of willing investors, different capital and a new type of shareholder or block it and send all that investment overseas".