CAIRN-INT.INFO : International Edition
All forms of currency are based on trust. Whether one is paying in seashells, in gold coins, in bills, or in bitcoin, the seller will only hand over his/her wares if he/she places trust in the value that the community attributes to the currency received in exchange. Finance cannot be provided without trust either: credit hinges on the lender’s faith in the repayment capacity of the debtor. Trust is the keystone of the system of payments, whatever the sophistication of monetary and financial instruments. In our modern monetary economies, finance relies on a hierarchized system of trusted third-parties that guarantees the sustainability of the monetary order. Along came the internet, this great explosive force, which disrupts the intermediaries that are supposed to create trust in the broadest range of domains. Moreover, this is not a coincidence, as the entry of the digital sphere into the domain of currency and finance has mushroomed since the legitimacy of institutions—banks, central banks, states—was weakened by the chaos brought on by the financial crisis. Yet digital networks also enable the creation of new processes for the building of trust. However, the intermediaries have not disappeared and algorithms cannot resolve everything. The new forms of digital trust do not, therefore, abolish the need for institutions, but they do, of course, transform their role.
The primary goal of this journal is to foster public discussion on economic policies. It asks questions about the foundations of the economy as a social reality and as a discourse on society. It also publishes the work of specialists in other subjects insofar as they contribute to clarifying the workings of economics. Read more...
Uploaded on on 25/07/2017
ISBN 9782352401926
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