Money Without Boundaries How Blockchain Will Facilitate the Denationalization of Money

Discover how blockchain will facilitate a new currency that will transcend space and time 

Largely inspired by The Denationalization of Money by Fredrich Hayek, Money Without Boundaries’ ideological foundation is also inspired by economists and thought leaders like Milton Friedman and Irving Fisher, advancements in capital markets over the past 50 years, and the convergence of old and new technologies. Author Thomas J. Anderson explains how blockchain acts as the filter and the glue, making it all possible. 

Compared with other currencies, blockchain-managed money markets are more straightforward and transparent. It is easier to monitor, understand, and assess the quality of their "full-faith and credit." Money Without Boundaries shows how not only money, but also the process of borrowing and lending, will evolve to be conducted in a 100% trusted, secure, transparent, open architecture environment. Anderson begins with a history of money and discusses the rise of cryptocurrency, concluding with a comparison of decentralized money markets to all other alternatives. 

Money without Boundaries:

• Demonstrates how blockchain technology allows full transparency

• Explains how blockchain makes it possible for money to be fully commoditized

• Explains how this fully market-based, decentralized, self-regulating system has vast implications throughout the global financial system

• Shows how everyone will benefit when they have the opportunity to compete on “full faith in credit”

If you are interested in cryptocurrency, money, monetary theory, or understanding how the applied uses of blockchain technology will change your everyday life, this is essential reading.

THOMAS J. ANDERSON is the founder and chairman of both Anasova and Supernova Lending. Before he founded Supernova, Tom worked in investment banking and wealth management for Wells Fargo, Deutsche Bank, Merrill Lynch, and Morgan Stanley, where he served as executive director of Morgan Stanley Wealth Management. He is a New York Times bestselling author and acclaimed financial planning expert. Tom's books have been featured in numerous media outlets around the world.

Preface xi

Acknowledgments xxi

Introduction 1

What is Money? 2

Money as a Store of Value 5

Demise of the Gold Standard 6

Planting the Seed for the Denationalization of Money 9

Part One: The Foundation 11

Chapter 1: Money Through Time – A Different Perspective 13

“The Holy Gift of Free Gold” 17

National Debt, National Blessing? 18

Following the Yellow Brick Road 21

“Breaking of the Gold Fetters” 24

“Let Me Lay to Rest the Bugaboo…” 27

Chapter 2: The Fundamentals of Money 31

Narrow Money versus Broad Money 33

The Theory of Money and Credit 35

Full Faith and Credit: Money is the Government’s Debt 37

Chapter 3: Banking – An Overview 41

A System That Multiplies Money 43

Money is Credit, and Credit is Money 45

“Not for Profit, Not for Charity, but for Service” 45

Chapter 4: The Denationalization of Money 47

Irving Fisher: Abolish Fractional Reserve Banking 48

Milton Friedman and Setting the Nominal Interest Rate to Zero 50

Friedrich Hayek: Denationalize Money 51

Chapter 5: The Rise of Cryptocurrency 55

Coins and Tokens 57

Is it a Security or a Utility? The Howey Test 60

Stablecoin: Establishing Trust and Stability 62

How Should We Value Coins and Tokens? 63

Chapter 6: The Role Model 69

Everything the Banking System is Not 71

Part Two: The Four Pillars – Our Building Blocks 77

Chapter 7: Pillar 1 – Modern Portfolio Theory and the Risk-Free Asset 79

Evolving Modern Portfolio Theory and the Risk-Free Asset 83

Summary of Pillar 1 84

Chapter 8: Pillar 2 – The Credit Theory of Money 87

Creating Money Under the Credit Theory of Money 88

Creating a Medium of Exchange 91

Summary of Pillar 2 93

Chapter 9: Pillar 3 – Solving the Trust Gap = Blockchain 95

It All Started with the Cloud 98

What, Exactly, is Blockchain? 100

Why Should We Care? 103

How Does Blockchain Work? 103

Why Would Anybody Do This? 106

Who Maintains the Network? 107

Blockchain Components and Ecosystem 108

Protocol Tokens and App Coins/Tokens: Working Together 112

The Other Layers 114

Summary of Pillar 3 115

Chapter 10: Pillar 4 – Capital Markets as a “Technology” 117

What are Capital Markets? 118

What are Money Market Accounts? 119

What’s in a Money Market Fund? 121

How Efficient is the Repurchase Market? 123

How Does This Relate to Our Third Pillar, Blockchain? 124

What is Securitization, and Why the Prejudice Against It? 125

How Securitization Works 126

How Subordination Works 128

Slicing and Dicing Our Way to Risk-Free 129

Summary of Pillar 4 130

Part Three: The Concept 133

Chapter 11: Transcending Space and Time 135

From Star Trek to the Death Star 136

“Copper, Beads, and Such Like Trash” as Money 138

A Store of Value that Transcends Space and Time 140

Chapter 12: Bringing the Building Blocks Together 141

A Known Store of Value: The Blockchain Revolution 143

A Different Objective: Zero Risk 144

Weight, Mass, and the “Risk-Free Rate” 144

The Kilogram and the Specimen 145

An Elastic Definition of the Specimen 149

A Sample Specimen 151

Convergence Checklist 154

Chapter 13: A Neural Network Begins 155

A Perspective on a Decentralized Market in Money 156

The Other Sides of Zero 159

The Paradigm Begins to Shift 160

The Paradigm Shifts: One Loan 162

The Neural Network is Born 164

Chapter 14: Conclusion 165

Securitizing Individuals at an Individual Level with Blockchain 170

Welcome to a Whole New World, Mr. Keynes 172

Appendix A: The Future of Money – A Credit-Based Society 175

Structural Superiority 177

Illustration 178

Appendix B: A House of Cards 179

A Debt-Fueled Illusion 181

Our Perspective Must Shift 182

Glossary 185

Resource Guide 191

Bibliography 207

About the Author 221

Endnotes 223

Index 241

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