net.wars

Review: Cloudmoney

Cloudmoney: Cash, Cards, Crypto, and the War for our Wallets
By Brett Scott
Publisher: Bodley Head
ISBN: 978-1-847-92587-9

Three years ago, the area around the local tube station included a bank and four ATMs. Come the pandemic, the bank closed, never to return, and so did two of the ATMs. The loss of the bank gave a couple of the chain stores an excuse to refuse to take cash. But they’re a minority in an area full of independent local shops, who recognize that many of their customers are cash users. Journey into some parts of central London, however, and cash gets you ghosted.

We are told that the cashless future is what we want: it’s more convenient (except when the system is down, the app needs to be rebooted, or there’s no Internet connection). The reality, as “monetary anthropologist” and former broker Brett Scott points out in his book Cloudmoney, is that despite this inevitability narrative, one reason electronic/digital payments are more convenient is a deliberate effort to make cash harder to access. Often, promoters claim the cashless society is – or will be – more financially inclusive. Yet, as Scott recounts, that “inclusion” in the remote global economy often brings with it the exclusion of locally-controlled, less formal economies. Less financial inclusion, more *enclosure* and “corporate seep”.

Scott’s central thesis is simple: once the forces of Big Tech and Big Finance have merged, they will have a hitherto unimaginable amount of power over all of us. I have some sympathy with this argument. People forget that it was through the banks that Gilead was brought into being in Margaret Atwood’s The Handmaid’s Tale. All they had to do was locate all the accounts tagged “F” and turn off access until a suitable male came forward to claim them. This is the power of cloudmoney – money that exists for us only in the form of numbers that represent promises to pay. Scott is not predicting a specific dystopia; but he does want to propagate a counterbalancing narrative to the “liberation” every new fintech app pretends to promise while scarfing up all our personal data. In his campaign to protect the public system of cash, he sometimes finds himself in the company of conspiracy theorists whose other ideas he rejects.

What is less clear is where bitcoin and other cryptocurrencies fit in. They also started with rhetoric: they were digital cash, digital gold, a mechanism for bypassing the world’s banks and governments. In practice, so far, they haven’t succeeded at any of these things, and even in El Salvador, where bitcoin is legal tender, you can’t use it to buy a box of oatmeal in a supermarket.

The story technology companies tell is, of course, that they are disrupting the stodgy, antiquated world of traditional finance. Instead, what Scott sees is plain old automation that serves that world and tightens its control. Almost every new service, whatever the rhetoric it starts with, from credit cards to Paypal to Apple Pay to Facebook’s failed Libra cryptocurrency, becomes a front end for bank accounts for the same reason that robbers always focused on them: that’s where the money is. The exception is cash – slow, partially disconnected cash that enables transactions that aren’t caught in what Scott calls the “digital mesh” of corporate capitalism. No wonder they hate it.

Review: Survival of the Richest

A former junior minister who’d been a publicity magnet while in office once told me that it’s impossible to travel on the tube when you’re famous – except in morning rush hour, when everyone glumly hides behind their newspaper. (This was some while ago, before smartphones.)

It was the first time I’d realized that if you were going to be famous it was wise to also be rich enough to buy yourself some personal space. The problem we face today is that we have multi-billionaires who are so rich that they can surround themselves with nothing *but* personal space, and rain in the form of other people never falls into their lives.

In fact, as Douglas Rushkoff writes in Survival of the Richest, this class of human sees the rest of us as an impediment to their own survival. Instead, they want to extract everything they can from us and then achieve escape velocity as completely as possible.

Rushkoff came to realize this when he was transported far out into the American southwestern desert by a pentangle of multi-billionaires who wanted advice: what, in his opinion, was the best way to hide from out and survive various prospective catastrophes (“The Event”)? Climate change, pandemics, mass migration, and resource depletion – where to go and for how long? Alaska, New Zealand, Mars, or the Metaverse: all their ideas about the future involved escaping humanity. Except: what, one wanted to know, would be the best way to keep control of their private security force?

This was the moment when Rushkoff discovered what he calls “The Mindset”, whose origins and development are what the book is really about. It is, he writes, “a mindset where ‘winning’ means earning enough money to insulate themselves from the damage they are creating by earning money in that way. It’s as if they want to build a car that goes fast enough to escape from its own exhaust”. The Mindset is a game – and a game needs an end: in this case, a catastrophe they can invent a technology to escape.

He goes on to tease out the elements of The Mindset: financial abstraction, Richard Dawkins’ memes that see humans as machines running code with no pesky questions of morals, technology design, the type of philanthropy that hands out vaccines but refuses to waive patents so lower-income countries can make them. The Mindset comprehends competition, but not collaboration even though, as Rushkoff notes, our greatest achievement, science, is entirely collaborative.

‘Twas not ever thus. Go back to Apple’s famous 1984 Super Bowl ad and recall the promise that ushered in the first personal computers: empower the masses and destroy the monolith (at the time, IBM). Now, the top 0.1% compete to “win” control of all they survey, the top 1% scrabble for their pocket change, and the rest subsist on whatever is too small for them to notice. This is not the future we thought we were buying into.

As Rushkoff concludes, the inevitability narrative that accompanies so much technological progress is nonsense. We have choices. We can choose to define value in social terms rather than exit strategies. We can build companies and services – and successful cooperatives – to serve people and stop expanding them when they reach the size that fits their purpose. We do not have to believe today’s winners when they tell us a more equitable world is impossible. We don’t need escape fantasies; we can change reality.