Commerce today is dominated by “electronic” transactions. A business that does not support the use of debit/credit cards will be extremely limiting its customer base and will likely not survive. The emergence of this form of money was the credit card. Companies began to establish lines of “instant” personal credit. Systems were put in place to support the convenient use of this flexible line of credit by retailers. Metal and then plastic cards, transaction slips, and imprinting machines. As communication technologies advanced, and the system became very profitable electronic equipment was developed to streamline the process. While e-commerce has not yet completely replaced paper and metal currency it is well on it’s way to doing so.
Credit cards have been with us since the 1930’s, but it wasn’t until 1950 that the widely accepted “Diners Club” card radically changed retail business practices. However, a problematic change in economic behaviors has accompanied this evolutionary process. Because it has established a somewhat ambiguous form of credit, the awareness of debtors of their financial status and sense of responsibility has eroded. Some of the ‘toxins’ afflicting the current economy are the excesses spawned by this erosion of responsibility and good sense. Further weaknesses of e-commerce are being revealed in new forms of crime, including identity theft.
The government and lending institutions have responded with new laws and some reform. However, there are other possible paths of correction. Changes in the way that e-commerce is implemented can improve financial behaviors on the part of consumers, and improve safety of the medium. The debit card is an example of change that shows e-commerce is not married to credit. The use of ‘account cards’ in casinos is an example of restraint in electronic transaction. It shows the feasibility of assignable valuation in an electronic monetary instrument.
We are also facing a growing instability of our currency, which has prompted regulators to fateful manipulations. If our economic system collapses, where do we go? There are some examples of private brokerage in e-commerce that have shown some promise, such as Pay-Pal. An extension of this idea, built on a broad foundation of multiple currencies could be developed by determined economists. The article by Gennady Stolyarov “Liberation by Internet” makes a case for the power and resilience of the medium. This freedom of ideas can be extended to a freedom of commerce by determined economists. The Federal Reserve has long been a threat to our economic freedom. Now only revolutionary ideas and concerted efforts can break it’s strangle hold on our Liberty. This monster has been feeding on us for 100 years. It is time to rise up and destroy the predator.