This is true in a way, but cash is also a kind of distributed ledger. When a cash transaction takes place, the debtor’s account is reduced and the creditor’s account is advanced instantly, frictionlessly and freely. The fact is that over the years, people have been discovering new ways to solve an old problem: how to ensure that transactions between people physically distant from each other are credible to both. And in doing so, they face the same problem. Creditors want money to grow slowly, debtors want it to increase quickly. Over the past decade, debtors have been winning at an alarming rate. In the US, for example, since the start of the recession in 2008, the amount of cash and near-cash — the thing economists describe as M2 money supply — increased from $7.5-trillion to about $10-trillion in 2012. That increase would normally take about a decade. Read more here…

thumbnail courtesy of businesslive.co.za