Sunday, January 22, 2017

Curse of Cash at World Economic Forum

The World Economic Forum "Future of Finance" session mentioned the "curse of cash."  Panelists discussed draconian negative interest rates and the elimination of large currency bills.  One panelist had this to say:

"One of the wonderful things about financial technology is that it will make everybody have access to financial services and payment systems and credit much more readily than before.  All of that will unfold over the next five and ten years and I think people will be pleased with this.  You won't need to carry a credit card.  You won't need to carry your wallet.  You won't even need to carry your cell phone because everything will probably be through your fingerprint or your eye but we do have greater cyber crime that's likely to occur as well.  A whole variety of things you can invest in now are the things that are going to prevent these cyber crimes.  As you get more financial technology and it becomes a more important part of your life you will find more people trying to get around the system.  I encourage everybody who has some kind of financial tech device to make sure they are protected and make sure they have taken the steps to protect themselves against money being stolen or their identity being stolen.  This is increasingly going to be a big problem in the whole fintech revolution." -- Carlyle Group co-founder David Rubenstein
Which Carlyle Group fintech affiliates are creating the vision Rubenstein painted?  UniRush has the Rushcard and has a stake in several banks, domestic and international.  He said Carlyle and other private equity underwriters (PEU) are investing heavily in fintech.  Trump's Treasury Chief is a former PEU.  In the future I expect Mr. Mnuchin to serve his financial peers vs. the public.