Money in the Twenty-First Century: Cheap, Mobile, and Digital

by Richard Holden

An economist examines three modern forces that have redefined what "money" means, who controls it, and what the future of finance might look like.
 
Money is increasingly cheap, digital, and mobile. In Money in the Twenty-First Century , economist Richard Holden examines the virtues and risks of low interest rates, mobile money, and cryptocurrencies, and explains how these three elemental forces will continue to play out—in our wallets, on the blockchain, and throughout major economies—in the decades to come.
 
Holden weaves in the stories of three people who have exerted massive influence over the future of modern US treasury secretary Janet Yellen, Ethereum cofounder Vitalik Buterin, and Raghuram Rajan, former governor of the Reserve Bank of India and chief economist at the International Monetary Fund. Moving from micro to macro, Holden investigates the infrastructure that permits digital transactions, the currencies that underpin them, the race for control of those currencies, shifts in policy and the international monetary system, and the impact on our politics of money in the digital age. Ultimately, Money in the Twenty-First Century asks if governments can keep these three tectonic powers of low interest rates, mobile money, and decentralized finance under control.

Genres: Economics, Finance, Money

227 pages, Hardcover

Published January 30, 2024

Reviews

[Richard Marney · Rating 3 out of 5]

Interesting read, albeit as much of the book is devoted to crypto and other electronic forms of money, a discussion with limited practicality for mainstream business and finance given the early stage of using crypto, etc. in the global trading system.

I will admit the author would be impressed that I paid for my flat white I nursed during my read of the book by using my Apple Watch however. 😊😊

[Curtis Salinger · Rating 3 out of 5]

Fairly educational about history of crypto, and tradeoffs that the FED has to make. Interesting to hear the history of currency in India, and the geopolitical ramifications of a crypto.

[Jung]

In "Money in the Twenty-First Century", Richard Holden explores the seismic transformation of money in the modern age, arguing that we're living through a period of unprecedented monetary disruption. No longer confined to paper notes or traditional bank accounts, money is becoming deeply entwined with digital technology, mobile infrastructure, and private innovation. This shift is not superficial—it fundamentally alters how money is created, accessed, controlled, and even understood. Holden’s work draws attention to three powerful forces that are reshaping the global financial landscape: ultra-low interest rates, the ubiquity of mobile technology, and the emergence of private digital currencies. Together, they are forcing a reevaluation of long-standing economic principles and reshaping how individuals, institutions, and governments interact with money.

The story begins with three events in 2008 that didn’t seem connected at the time but ultimately laid the groundwork for a new monetary order: interest rates plummeted to near zero across advanced economies, the smartphone began to take hold as a common tool, and Bitcoin was launched. Each of these forces represented a departure from the established norm. Cheap money became a fixture of the global economy, not just a crisis measure. Smartphones rapidly turned into financial devices, especially with the rise of digital payments. And Bitcoin demonstrated, for the first time, that it was possible to have a functioning monetary system entirely outside of state control. These forces did not emerge in isolation but instead interacted to reshape every level of the monetary system—from how money is spent in local shops to how central banks develop policy.

The decline of cash is one of the most visible signs of this transformation. In countries like Sweden, cash transactions have become rare, replaced by tap-to-pay systems, mobile wallets, and contactless payments. These tools offer speed, convenience, and security. Yet, the shift also exposes a divide: not everyone can or wants to make the jump to a cashless economy. Older individuals, low-income communities, and people without access to reliable digital infrastructure often still depend on physical currency. Sudden moves to eliminate cash, like India's 2016 demonetization, show how vulnerable populations can suffer from poorly planned monetary reforms. While a digital economy holds promise, its implementation requires thoughtfulness and inclusivity. The rise of digital payments doesn’t mean cash will disappear overnight, but it signals a powerful transition already underway.

Perhaps the most dramatic shift comes from mobile money. In places where traditional banking infrastructure never reached—rural Africa, parts of South Asia—mobile phones have enabled a form of financial inclusion that was once unimaginable. Apps like M-Pesa in Kenya have allowed millions to send, receive, and store money with nothing more than a basic mobile phone. The impact goes beyond convenience. Studies show that mobile money can reduce poverty and improve gender equity. In Afghanistan, paying police salaries through mobile accounts helped reduce corruption. These case studies reveal that digital finance isn’t just a high-tech luxury for rich nations; it’s a practical lifeline that is redefining how people engage with money in fragile or underserved economies.

This grassroots revolution has implications for how we understand the role of financial institutions. For centuries, central banks issued money, commercial banks held deposits and made loans, and governments enforced the rules. But the rapid spread of digital financial platforms is changing that balance. Tech companies are increasingly responsible for moving money, verifying transactions, and even storing wealth. Financial behavior still reacts to traditional levers like interest rates and inflation, but the tools that mediate those reactions are now apps and algorithms, not bank branches or paper statements. This decentralization raises important questions about oversight, stability, and fairness. As financial systems go digital, the lines between private service and public utility begin to blur.

Cryptocurrency represents the most direct challenge to the traditional order. When Bitcoin emerged, it offered a vision of money free from state control. Using blockchain technology, Bitcoin and its successors created decentralized systems that don't require trust in governments or banks. These currencies are verified through distributed consensus, not institutional authority. What was once a fringe project has grown into a multi-trillion-dollar market. Ethereum, created by Vitalik Buterin, added the ability to create smart contracts—agreements enforced by code, not courts—further expanding the role of programmable money. These innovations threaten to shift control away from central banks and towards digital networks. However, their success also raises concerns: what happens when a few private actors wield massive financial influence through digital currency adoption?

This threat became very real in 2019, when Facebook (later Meta) unveiled plans for Libra, a global digital currency. The idea of a private company with billions of users creating its own form of money sparked immediate regulatory backlash. U.S. officials, including Treasury Secretary Janet Yellen, voiced deep concerns. The project was eventually abandoned, but its influence was profound. It signaled that large tech companies were no longer content to merely process payments—they were ready to redefine money itself. This prompted governments to act. Central banks began developing their own digital currencies—so-called 'govcoins'—that would preserve the benefits of state-backed money in a fully digital form.

Central bank digital currencies (CBDCs) aim to combine the trustworthiness of public money with the speed and flexibility of digital systems. In countries like China, the digital yuan is already in use. In the U.S., proposals like Fedcoin suggest a centralized ledger system controlled by the Federal Reserve. Unlike cryptocurrencies, these govcoins don’t rely on decentralized mining or anonymous users. They promise stability, transparency, and control. But they also raise important issues about surveillance, privacy, and the future role of commercial banks. If a government can directly issue and manage digital currency, what happens to private banks, whose role has traditionally been central in money distribution and credit creation?

The battle over digital money is not just about convenience or efficiency—it’s about power. The U.S. dollar has long held a privileged position as the global reserve currency. But as countries like China push forward with digital alternatives, that dominance is no longer assured. A state-backed digital currency could bypass traditional systems like SWIFT, making it harder for the U.S. to enforce sanctions or exert economic pressure. At the same time, if companies like Amazon or Apple launch successful digital currencies, they could create financial ecosystems that rival those of entire countries. The digitalization of money is redrawing the global map of financial influence, and the rules of international finance are being rewritten in real time.

This transformation is taking place against a backdrop of historically low interest rates. For decades, borrowing costs have fallen, driven by aging populations, rising inequality, and technological change. These forces have reduced the demand for capital even as global savings have grown. Cheap money has become a fixture of the modern economy, and with it comes a greater risk of financial bubbles. When returns are hard to find, investors chase yield in assets like real estate, equities, and even cryptocurrencies. Governments, emboldened by low borrowing costs, are also tempted to spend more freely, raising questions about long-term fiscal sustainability. While some argue that digital innovation can ease the burden of public debt or even replace traditional monetary tools, Holden cautions that history offers clear warnings: unchecked money creation, digital or not, can lead to inflation and economic instability.

Ultimately, Holden’s message is one of cautious optimism. The architecture of money is being rebuilt from the ground up, and the decisions made today will shape financial systems for generations. While the risks are real—from inequality to surveillance to monetary fragmentation—the opportunities are equally profound. Digital money can increase access, improve efficiency, and enable smarter regulation. But this future is not predetermined. It must be designed with care, balancing innovation with inclusiveness, and private ambition with public good. Money is no longer what it was—but what it becomes next is still within our control.

[Felix Sun · Rating 2 out of 5]

I listened to the audiobook. It feels like a mess. It wasn't clear what the book is for. It tries to educate people what crypto currency is, It tries to pitch to US about launching its own, and it tries to throw a commentary about world event. The introduction is too basic and slow. It feels it tries too hard to be technical for the crypto part. It doesn't feel objective "US is the best, China is crook boo hoo", and it commented about the Ukrainian-Russian war, which is totally out of place which the author doesn't have any authority in the subject. It is unbearable after chapter 5. Didn't finish the book.

[Fabio Bertone · Rating 4 out of 5]

Interesting read, with a good history of how mobile, and Blockchain enabled change in the use of digital money.

The part that guesses the future... Is less satisfying, with more opinions on policies and opportunities for states over actual next steps and forecasts.

I am happy I have read it 😎