Smart Money: How Digital Currencies Will Shape the New World Order

by Brunello Rosa, Casey Larsen

A FINANCIAL TIMES ECONOMICS BOOK OF THE YEAR

'An excellent book' Vince Cable | 'A must read' Jo Johnson | 'A fascinating read' Bill Dudley
A timely manifesto on how digital currencies will win the New Cold War and the struggle for geopolitical supremacy in the twenty-first century.

A New Cold War is underway. Whereas the first Cold War was dominated by the threat of nuclear conflict, the new front line is economic and financial, but still dominated by technology. Who controls its future will help decide the outcome of the geopolitical struggle between China and the US.

Since the end of the Second World War, the US dollar has been the global reserve currency, which has ensured American dominance of the world economy. But no longer. More than a hundred countries are developing Central Bank Digital Currencies (CBDCs), digital equivalents to cash that will utterly transform how we do business at home and abroad.

China was the first country to recognise the potential of this new money. The West's media focused on the new currency's role in China's surveillance state, creating widespread concern about all CBDCs. But they have largely overlooked a more important aspect of its as a tool through which to 'de-dollarise' the developing world at the speed of light. When China's President Xi Jinping officially launched the digital yuan in February 2022, he also agreed a pact of 'limitless co-operation' with Russia. Within days, Russia launched its war on Ukraine, secure in the knowledge it could bypass US sanctions.

Urgent, clear-eyed and groundbreaking, Smart Money shows us how CBDCs are going to impact all of our futures in ways that most of us have failed to even consider. If the West is to compete, it needs to act fast to develop its own global digital currencies that reflect the values of liberal democracies.

Genres: Economics, Nonfiction, Business, Audiobook, Finance

352 pages, Hardcover

Published December 17, 2024

Reviews

[Alessio · Rating 3 out of 5]

The book is mostly about superpower competition in the “New Cold War”, with CBDCs being one of the dimensions covered. Overall nice book, but I would have expected a more technical discussion of CBDCs beyond the geopolitical angle.

[Josh · Rating 3 out of 5]

Learned a ton and am now in favor of a retail CBDC. The authors do a great job of exploring the implications of CBDCs and how they improve on current monies.

But they consistently overplay their hand. The geopolitical analysis re: DSR and BRI felt incredibly surface level. And any serious analyst can tell you that Africa is not the most important frontier for Sino-US competition.

Also at the end they basically suggest that if the US doesn’t make a CBDC then “freedom to create culture” will vanish. ??? No.

[Gijs Limonard · Rating 5 out of 5]

4,5 stars;

[Wan Shoo · Rating 4 out of 5]

Intriguing and enlightening, this book provides a comprehensive look at various forms of currencies, examining the characteristics and potential of digital currencies, stablecoins, and cryptocurrencies in the modern market. The author adeptly analyzes different currencies across continents, offering a thorough understanding of the geopolitical factors influencing their adoption. The book explores the complexities and dynamics of past and current financial markets, highlighting the risks linked to the petrodollar, de-dollarization, the e-Chinese Yuan, and emerging business blocs. Through detailed analysis and reflective insights, it emphasizes the necessity of foresight in national leadership, critiquing the shortsightedness of Western nations that could threaten their future financial security. The inclusion of Theodore Roosevelt's quote, "In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing," aptly captures the apathy of nations. Despite the sophisticated technological discussions, 'Smart Money' remains reader-friendly and avoids overwhelming jargon, making it an accessible read. Immerse yourself in this book to explore the geopolitical strategies of the 21st century and gain insight into the chaos of the contemporary world.

[Alex · Rating 4 out of 5]

Smart Money by Brunello Rosa is a solid read on the future of money and the role central banks must play in digital currency.

The author makes a compelling case that China is far ahead of the US and most of the world with the digital yuan — positioning it as the first credible step toward an eventual alternative to the US dollar. Rosa explains the potential benefits of Central Bank Digital Currencies (CBDCs), particularly in lowering transaction costs and speeding up execution, while also addressing the skepticism in the West.

He contrasts China’s decade-long progress with the US, where CBDCs are still viewed as government overreach into private sector territory. Concerns over surveillance and data collection are central to the Western debate, but Rosa suggests that a hybrid public-private model may be the only practical way for CBDCs to scale quickly and efficiently.

I came into the book knowing little about the digital yuan beyond its existence. Rosa provides a clear, accessible primer on CBDCs and digital currencies — without straying into overdone conversations on bitcoin or blockchain, where other authors are stronger.

A useful introduction to how digital money is evolving, with real geopolitical and economic implications.

[Gian Luca · Rating 4 out of 5]

It’s a wake up call. Central Bank Digital Currency is becoming a reality and it poses many dangers, in particular for the US, UK and EU because the dollar dominance. China has been quietly developing a digital currency among another 130 countries. China through the China Belt Road Inititative (BRI)and the Digital Silk Road has already an infrastructure to deploy their own Yuan Digital currency. There are already transactions among BRIC countries to finance trading. The US, UK and EU are stuck with the issue of privacy and, they are already 10 years behind. The change could occur very rapidly when compared to paper to fax to email. The dollar as a geopolitical tool would loose the power and China would be able to control the ledger

[Nathan Hutchinson · Rating 5 out of 5]

I have no background in finance and had little knowledge of digital currency coming into this book. No knowledge of CBDC! I am now more educated and aware of fiscal matters concerning modern currency. I thoroughly enjoyed this book! Well written and clear but also fair.

[Darrick · Rating 4 out of 5]

This is the first pro-cbdc argument I've heard and it makes a compelling case. I'm skeptical that our government can create a currency that benefits citizens over the government's own goals though.

[Joel Haowen Tong · Rating 3 out of 5]

First half is relevant and interesting, second part is boring and repetitive for someone already familiar with Web3 and smart contracts.

[Gloria Guerra · Rating 5 out of 5]

Great analysis of current status of International Relations, based on an financial and economic approach. Highly recommended to students or interested ones on the field.

[Jern Kunpittaya · Rating 5 out of 5]

Very Good Geopolitics book, should read now for relevant content. Good point that digital currencies are mostly supported just as excuse to create new financial infrastructure that doesn't evolve around US dollars. Like the point of battle between China's state-backed digital currency vs US's private-company driven digital currency.