The future of money

Money has been an integral part of human civilization, serving as a medium of exchange, store of value, and unit of account. However, with the rapid advancement of technology, the concept of money is undergoing a transformative shift. The future of money lies in a digital and decentralized landscape, where traditional currencies coexist with cryptocurrencies, and financial transactions become faster, more efficient, and inclusive. What does the future hold for the concept of money?


One apparent evolution of money is the rise of cryptocurrencies, such as Bitcoin and Ethereum, which have emerged as significant disruptors in the financial world. Based on blockchain technology, cryptocurrencies offer decentralized and secure transactions, independent of traditional banking systems. They provide individuals with greater control over their financial assets and enable peer-to-peer transactions across borders without the need for intermediaries.

A CoinMarketCap study, as reported by Forbes, revealed that “there are approximately 22,932 cryptocurrencies, with a total market capitalization of $1.1 trillion.” As cryptocurrencies gain wider adoption, they have the potential to redefine the concept of money by providing alternative means of payment and store of value.

Another shift is the growth of central bank digital currencies (CBDCs). Central banks are exploring the development of CBDCs as a response to the rise of cryptocurrencies. CBDCs are digital versions of fiat currencies issued and regulated by central authorities. They offer the benefits of faster transactions, increased financial inclusion, and improved transparency. They can streamline government payments, enable direct peer-to-peer transactions, and enhance the efficiency of monetary policy.

According to a recent Reuters report, “a total of 130 countries representing 98% of the global economy are now exploring digital versions of their currencies, with almost half in advanced development, pilot or launch stages.” The introduction of CBDCs may reshape the financial landscape, blending the features of cryptocurrencies with the stability of traditional fiat currencies.


The future of money is also driven by the rapid growth of financial technology (fintech) and digital payment systems. Fintech companies are revolutionizing the way we conduct financial transactions, providing convenient and secure digital payment solutions. According to a recent Boston Consulting Group report, there are currently over 26,000 fintech startups worldwide, which has grown dramatically over the past few years (up from only around 12,000 fintech startups in 2019).

Mobile payment platforms, such as PayPal, Venmo, and Alipay, have gained significant popularity, enabling seamless transactions and financial inclusion. Additionally, emerging technologies like blockchain and AI are being leveraged to create innovative financial products and services, further transforming the way we interact with money.


The digital future of money holds great promise for financial inclusion. As technology becomes more accessible, individuals in underserved communities and developing economies can access financial services through their smartphones. Digital wallets and mobile banking solutions offer opportunities for the unbanked and underbanked populations to participate in the formal financial system, empowering them with greater control over their financial lives.

A 2021 Financial Inclusion Survey (FIS) of the Bangko Sentral ng Pilipinas (BSP) revealed that 60% of those with mobile phones and internet access in 2021 performed online financial transactions, such as payments and fund transfers, which increased from 17% in 2019. The survey also showed that the number of Filipino adults with financial accounts increased from 20.9 million in 2019 to 42.9 million in 2021, growing by more than double. The convenience of transacting online truly shifted financial behavior during the pandemic, with more Filipinos saving and using online banking and digital payments. This increased access to financial services can drive economic growth, reduce poverty, and promote social development.


While the future of money presents exciting possibilities, it also raises challenges that must be addressed. Security and privacy concerns surrounding digital transactions require robust measures to safeguard personal and financial information. Regulatory frameworks need to evolve to ensure consumer protection, prevent fraud, and combat money laundering and illicit activities. Additionally, the digital divide must be bridged to ensure equitable access to digital financial services, considering disparities in internet connectivity and digital literacy.

The future of money is characterized by the growing influence of digital currencies, decentralization, and technological innovation. Cryptocurrencies, CBDCs, fintech, and digital payment systems are reshaping the financial landscape, offering faster, more inclusive, and secure transactions. This evolution holds the potential to drive financial empowerment, spur economic growth, and foster global financial integration. However, careful attention must be given to address regulatory, security, and inclusivity challenges to ensure a sustainable and equitable future of money. By embracing technological advancements while maintaining a focus on security, privacy, and accessibility, we can navigate this evolving landscape and unlock the full potential of digital currencies and financial technology.

Reynaldo C. Lugtu, Jr. is CEO of Hungry Workhorse Consulting, a digital and culture transformation consulting firm. He is the chairman of wAcademy. He is fellow at the US-based Institute for Digital Transformation. He teaches strategic management in the MBA Program of De La Salle University.