Financial market expert: Blockchain will eventually eliminate the cash system

The London-based DPRM Group helps businesses, investors and policymakers understand the risks and pricing of all types of activities in the economy. Recently, at the Cayman Alternative Investment Summit, Dr. Philippa Malmgren, founder of DPRM, said that blockchain represents the end of the era of cash.

Yahoo Finance's Jared Blikre conducted a video interview with Malmgren during the summit.

According to information provided by Wikipedia, Malmgren served as Special Assistant to the President for Economic Policy at the National Economic Council, and she was also a member of the President's Working Group on Financial Markets.

Blockchain is the future

She said:

Blockchain is the future. Whenever you do any electronic transaction—buying something online or swiping a credit card at a store—the records are automatically stored in the cloud.

These records no longer have to be written into different books for individual accountants to review. With blockchain, all the record-keeping process is automatic, and you can always see the location and time of the transaction.

Malmgren continued:

This technology is so important that it almost creates a whole new accounting system, using completely new standards to record all information.

All economic activities are 100% transparent.

She said people often think that once they start using Bitcoin or digital currency, they have complete privacy, but "the reality is that blockchain means everything is visible to the government."

How did the cash disappear?

Blikre pointed out that the cash system still exists and is beyond the control of the government. Malmgren responded:

Such systems will soon become obsolete. People don’t realize how widespread electronic cash is. In India, the government switched billions of people to digital currency in 53 days.

According to Bloomberg, a dedicated electronic money system can make the transfer of funds between C2B (personal to business) and B2B (business to business) more convenient, faster and cheaper. People with lower incomes can benefit from increased efficiency and reduced costs, lowering their threshold for using banking services.

However, the biggest challenge in this process is to convince people that cash has no value. There is still political resistance to the conversion between cash and electronic fiat currency. However, popularizing the advantages of digital currency may be an effective way to avoid friction with the government.

Overall, Malmgren is positive about the development of financial markets. She believes that markets with less government intervention usually have strong momentum. In addition, in her opinion, the securities market is ready to break new heights.