Thank you very much for the invitation. I am delighted to have the opportunity to share some thoughts with you on a topic I am very much interested in and that I believe is of the utmost importance to people around the globe—and that is “the digital future of markets and money.”
So let us dive right in!
When I was your age, dear students, there were no cell phones, no internet, no Google, no Amazon, no Facebook, no Twitter, no TikTok, no YouTube. People did not have Apple Pay, PayPal, Alipay, or WeChat Pay.
Luckily, however, we already had money. Purchases were paid for with cash—coins and bills—with writing checks and with electronic money by wiring sight deposits from one bank account to another. As online banking didn’t exist, people were pretty busy filling out many remittance slips.
Digitalization
Times have changed a lot since then. Digitization, in particular, has been drastically developed and has brought about truly revolutionary changes over the past twenty years or so.
They come with digital transformation, i.e. the gradual transition of existing economic and social systems into the digital age, and also with digital disruption: radical changes triggered by innovative technologies and business models.
Digitization has proven to be a powerful catalyst for economic and societal change. It connects people from very different places and cultural backgrounds worldwide, bringing them closer together than ever before; it fuels competition in already established markets and drives and spreads innovations globally.
What digitization will not do, however, is change the concept of the market as such; I’m pretty sure of that. Because the concept of the market is inextricably linked to human action.
Human action means, generally speaking, that we, as human beings, replace one situation we find less satisfying with a situation we consider more favorable.
And we cannot stop doing it; we cannot not act—for logical reasons. Because if you say, “Humans can choose not to act,” then you act (namely in the form of speaking), so you commit a performative contradiction, thus saying something false.
For logical reasons, we know it is apodictically true that humans act. And as long as we do engage with our fellow human beings, there will be markets of all kinds, even in the age of digitization.
And that is very good news! Because markets—I should say: free markets—are mutually beneficial for all parties involved. Let me give you an example.
You pass a fruit shop and get hungry. You go in and buy apples for one euro. Question: What value do you assign to the apples? Answer: You value the apples more highly than the one euro—otherwise, you would not make the deal.
What about the shopkeeper? Well, he values the one euro he gets more highly than the apples he surrenders. Otherwise, he would not have partaken in the transaction.
As you can see: The free market transaction is beneficial for you and the shopkeeper. You are both better off after the deal. That is the beauty of the…
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