“The Future of money: towards new wealth, work and a wiser world.” When I read this powerful research paper written by Bernard Lietaer, I don’t know why my mind is hit like a fire in a profound manner. Similarly, at the same time, when I compare new technologies with old ones, I get really amazed by the world simply because it is changing so fast in terms of cryptocurrency, bitcoin, blockchain, fintech, artificial intelligence (AI), machine learning, data management, and now metaverse. So, my plain question is what will the world of money look like in five-or ten years’ time now? Notably, this quest comes to my mind quite frequently. And, of course, despite having so many innovations in digital payment systems, no one can predict exactly what the world’s digital currency will look like.

Having said that, digitalizing the payment process is advantageous in theory — anyone with a smartphone can make cross-border payments and purchases cheaply and efficiently. In Nepal, for instance, popular means of digital payments are digital wallets, e-banking, mobile banking, automated teller machines (ATMs), point of sales machines and so on and so forth. Needless to say, digital payment today has become a part of daily life for most people in Nepal. Likewise, all digital wallets like Khalti, IME Pay, eSewa, Prabhu Pay and others have become trendier, too. They are easier to use and more convenient for making online payments. 

In fact, digital lending is a new concept for Nepali banking systems. However, it represents a powerful solution for helping to create a financial system that works for everyone. But will it become mainstream in the near future? Put it simply, digital lending relies on technology to offer loans, perform credit evaluations, authenticate loans, and manage payments, all through online platforms and digital apps. In short, the whole lending process is digitized and performed remotely, frequently through a mobile phone. In the context of Nepal, for example, banks and financial institutions can provide digital loans up to NRs. 5 lakhs to customers having bank accounts where salary, professional or business income are deposited regularly and up to NRs. 2 lakhs. And, the maximum period of such a loan will be 3 years. 

Globally, there is a clear facelift into an era of artificial intelligence (AI) and now metaverse for rules-based investing. For example, in the United States, more money is now flowing into exchange traded funds (ETFs) than human-managed active mutual funds. The top five hedge funds in the world are all quant funds. A lot of why this is happening is that humans are average investors against machines. Therefore, I’d like to say: blockchain, decentralized finance (DeFi), quantum computing and security, AI in credit and insurance, these are the innovative tools we should cope up with while diligently using. In a nutshell, by mindfully as well as carefully considering all these innovative tools, the future of money should be more transparent and worthwhile in a true sense.