Here's How You'll Make and Save Money in the FutureGeorge Dvorsky10/09/13 2:20pmFiled to: Daily Explainerfuturismmoneyfuture of moneyfinancebankingcurrencydigital currencyheather schlegel8813EditPromoteShare to KinjaToggle Conversation toolsGo to permalinkThe way we deal with money is constantly changing — as is the nature of money itself. You can absolutely expect your money to change over the coming decades. In fact, the world of finance is on the cusp of revolutionary change.AdvertisementTo learn more about the future of money, I spoke to Heather Schlegel, an award-winning futurist and expert on the future of financial transactions. She recently consulted at SWIFT (the Society for Worldwide Interbank Financial Transfers), spoke at SXSW, TEDxZwolle, and Sibos.She’s also the producer of an upcoming six-part series called “The Future of Money,” a documentary that will put a positive spin on the evolution of currency and how we use it. And fascinatingly, Schlegel is using her insights into finance — and the way it’s already changing — to help her fund the project.Advertisement"I see a future where we’ll be happier and fulfilled with our work situations," Schlegel told me. "Some people are living this future today. Many more will live it in the future." Futurists don't tend to talk about the future of money, finance, and related technological innovations. At the same time, most people tend to shy away from such topics, convinced that it can't possibly work for them. What's the problem? Why the lack of future vision?One problem is a misconception with what the future is. Many people mistakenly imagine there is one future. But the future is a subjective place with many possibilities. There is not one future. We want certainty, so we look for specific concrete predictions, but you can’t be certain about anything in the future. What is lacking is an understanding, a literacy around the future. One interacts with the future in a very different way from the past or present.SponsoredInnovations in trading, money, and finance are nothing new to human history. For sure, humans are amazing creatures and use whatever technology is available to us. Whether it’s rocks, beads, coins, gold, paper money, a plastic card, electronic number in a spreadsheet or your mobile phone, derivatives, stock — we use the technology available to represent what we value and how to transact it.AdvertisementYou've said that, "We live in abundant times, the future can be even more abundant if we let it be.” It's hard to believe this given the current economic crisis in Europe and elsewhere. How will innovations in currency create the abundance of which you speak? We are experiencing the limits to growth in the current paradigm. We have gone beyond the limits of the existing system and it’s breaking — this is the crisis we are experiencing. At the same time, a new paradigm is emerging that embraces these breaking points while extending into new product possibilities. Many of these ideas (sharing, bartering, community currencies) are not necessarily new, but technology is renewing them. We are living through an economic paradigm shift. Innovations in currencies and transaction methods increase diversity in the ecosystem which strengthens the ecosystem. I share Ramez Naam’s optimism that ideas and the application of technology will enable us to solve our problems, which he eloquently explores in his book, The Infinite Resource.We're already starting to see some really neat innovations in how payments are made at vendor sites. Can you describe the current state of the technology? What can we look forward to in the near future? AdvertisementAdvertisementTransaction innovations are using the existing infrastructures: point of sale infrastructure, the internet, or mobile infrastructure. While not perfect, these systems are strong and ubiquitous — products are leveraging these networks. Square is a great example of a bolt-on hardware (the square dongle) into existing infrastructure (earphone jack) using software (mobile app) and the Internet (data network). We’ll see more of this kind of creative usage.Bitcoin made the news recently in consideration of the financial crisis in Cyprus. This crisis underscored two issues, namely the ease at which state institutions can now hold on to our money, and the incredible potential for virtual currency. Banks are still rebuilding consumer trust that was lost in the economic crisis. Trust in technology is high, so it’s no surprise that there is high trust with bank adjacent technology companies like Paypal, Square and Amazon. This gives them an advantage to traditional banks. I think there is a huge opportunity for banks to diversify from traditional money holdings. I worked on a project with Innotribe, the Innovation Division of SWIFT (The Society for Worldwide Interbank Financial Telecommunication) called the Digital Asset Grid, which explored a digital safety deposit box for personal and sensitive data. One of my previous videos show a future with the Digital Asset Grid. ShareTweet Kinja is in read-only mode. We are working to restore service.