M-Pesa: The Beginning of the End for the Black Economy

CLAPTON

dryhat wrote: »

Private (or public) money has always needed a central authority to issue the money. Not any more.

But, as I said, Bitcoin as a brand new technology is about more than money and payments. It is still early days, but the potential for disruption of many sectors of the economy is huge.
The Bitcoin landscape is continually evolving and even compared to 12 months ago it has changed massively. If you compare it to the development of the internet we are in about 1997.

As an aside, I have never heard of the person you refer to, but I'm guessing she passes as some kind "economic expert" - which is even less reason to take any notice of her.
Many so-called experts are going to look very foolish in a few years when you look back at their views on Bitcoin.

presumably you have personally checked the mining methodology and confirm that from your personal knowledge it is totally fraud prove and its integrity is guaranteed.
You personally have both your pounds in the system.

BobQ

Generali wrote: »

http://www.businessweek.com/articles/2014-06-05/safaricoms-m-pesa-turns-kenya-into-a-mobile-payment-paradise

A very interesting piece. Perhaps it's the beginning of the beginning of the end for the cash economy. Once it becomes very unusual to use any cash at all, someone taking out £5,000 to pay for a kitchen or heating system in cash is going to be investigated I would imagine.

That mightalso explain why there's a wave of decriminalisation of marijuana going on across the world: if you can start to control the black economy, perhaps you need to make some tougher choices about what you really want to control. Proper enforcement of drug laws in the US means sending middle class white students to prison as well as young black working class men.

The cynic in me says that the only way to stop the black economy is to stop printing cash. E-Systems will offer a service but individual schemes will always suffer security risks that will undermine it. Which Government will take the step of de-legalising cash? And then there are bitcoin like concepts.

BobQ

michaels wrote: »

No one else worried that letting the authorities have sight of every transaction we make is pretty dangerous given the possibility that they may be corrupt at an individual or even national level?

No doubt the response is 'if you aren't doing a anything wrong you don't have anything to worry about' but what when the definition of what is wrong changes over time, perhaps alcohol will be prohibited again, perhaps reading publications critical to the govt will be outlawed and there will be no way to get round such restrictions because it will not be possible to pay for the newly outlawed activities.

I have been worried about that for 40 years. Meanwhile people have told me I was being paranoid. I used to object to people who asked me for my NI number, I challenged every official or commercial request for information I thought was unnecessary, I refused to use loyalty cards because they track your habits, and I paid cash everywhere I went except for major purchases. But the majority slavishly went along with surrendering all their personal data and accepted tracking of their transactions. Now there is no point objecting, the damage has been done and a cashless society will apply the final nail in the coffin.