The money we use is Government money or levered Government money (bank credit). Government money is backed by legitimate force. The question is: what do this money become when force becomes not only illegitimate, but ineffective?

I think that we may have or be closed to have reached the limit in using legitimate force (Government) to back our money.

There are several reasons for this evolution: dwindling returns on the use of force in driving the success of large organizations, gridlocked political processes, environmental limits, difficulty to monetize the growing immaterial economy, and many more.

If so, the current monetary system used is likely to continue to deflate, as debts are paid or defaulted on, with regular bursts of inflation by fiscal/monetary authorities but with decreasing marginal returns.

The good news is: we are bound to continue to grow, to pursue Happiness, and we will need systems to continue our growth. But more likely around “soft power” systems, where reputation plays an increasing role.

In other words, the future of money is less money and more not so random of kindness. In other words, we can deflate in monetary terms, but inflate in terms of social currency.

There is a lot for bankers to do here. Banks are not going to go away. As trusted intermediaries, they will likely play an increasing role in providing us with convenient, actionable and reliable access to data about other people and organizations, not just the money we owe or are owed.

This evolution will take time. Money is here to stay, but over time, it may decrease in relative importance to social currency. It’s time for banks – big and small – to leverage their assets and position themselves in this space.

• Can Geeks Re-Wire Your Money?
• The new age of money
• Inventing currency: future of Internet-based money.
• Credits Coins Cash: Social Currency & Finance 2.0