Bank account money is the same as casino chips
Many people think that the 10,000 yen bill and the 10,000 yen in the bank account are the same, just different in shape, and that digital money is nothing more than an easy-to-use version of cash. I think. In this way, believing that cash and other things are ``just different forms of money with the same value'' is ``OTOMI (One-Type-Of-Money-Illusion). It's an illusion,' said former financial broker Brett Scott.
The Casino-Chip Society - by Brett Scott
When a person puts cash in a bank, they get a 'bank deposit,' which represents money in their account. Many people think that 'bank deposits are cash in the bank', but there is actually no cash equivalent to bank deposits.
Scott compares 'cash' and other forms to casino chips. Suppose Mr. A entered the casino with 10,000 yen in cash and converted it into chips. Then, there will be two types of '10,000 yen that went to the casino' and 'chips issued by the casino', but the important point is that Mr. A no longer has cash. Chips are just 'notes of credit', and the casino system is such that you can only get cash back by cashing back the credits.
Now, let's say a casino decides to digitize its operations. Suppose a casino deposits customer money into customer accounts on its database and distributes digital chips through a dedicated app or through a digital device such as a smartwatch. Nevertheless, a digital chip is still a chip, just an IOU. You can apply this idea to the money in your bank account. The money in your bank account is a “digital chip”.
Mr. Scott divides the form of money into two types and explains that we always use two types of money. The two types are 'cash' and 'tip', and the tip refers to money transferred to a bank account. A tip is just an IOU to access cash.
However, many people lump the two together as 'money,' Scott points out. Scott said, ``People at OTOMI often think that going cashless is ``a type of money that has evolved into another kind of money.'' However, going cashless is physically It's like cash being overrun by bank-issued digital chips.'
Also, if cash is the first layer and digital chips that can be converted into cash are the second layer, then there is the concept of the third layer that can be converted to digital chips. For example, theme park medals and coins that can be purchased with digital chips, money transferred to cashless payment services such as PayPal, etc. Virtual currency is also essentially considered a third layer.
Scott explains that understanding these differences makes it easier to understand discussions about money. For example, in today's cashless society, we can see that there are organizations that want to maintain cash (first layer) and those that want to maintain digital chips (second layer). Banks in particular have been trying to push the second tier for a long time, but in response to the people's desire to keep the first tier, they are about to issue a new money called Central Bank Digital Currency (CBDC) . Regarding this, Scott said, ``Banks dominate the second layer system, but in the future, CBDC, which will be the virtual first layer, and stablecoins linked to legal currencies, etc. There is a possibility that it will be crushed by being sandwiched between the third layers such as.
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in Posted by log1p_kr