of Bitcoin and other cryptocurrencies or their underlying distributed ledgers, although it does try to explain those things in simple terms. It is not a guide to Bitcoin trading strategies. This book will not tell you whether crypto is a good or bad investment. It is not even an appeal for the creation of a digital dollar, although it does explain what is at stake in doing so. No, this book is more basic than that.
This book is written to take a stand for the future of economic privacy and financial liberty. We must harness this unstoppable wave of digital money—the Internet of Value—to advance greater economic inclusion, financial and economic freedom, and human aspiration for generations to come. We must be bold, not timid. Ultimately, we must insure that the future of money is determined by a free society of fearless people, philosophers and farmers, teachers and musicians, fast-food cashiers and hotel cleaners, doctors and dreamers, and accidental regulators like me.
And people like you.
Introduction
“Dreams I had just yesterday
Seem to all have passed away in time
And, once again, I have a memory
Another treasure in this life of mine,
This life of mine.
“Fate shows no mercy to love
And so, I pack my wheels once more
‘cause there's so many
Backroads in life yet to explore
Yet to explore
“I know I can't ever change
My lone person or my mind
And so, I have to be on my way
And leave those realities behind
Yeah, leave 'em behind
“And now, the sun is shining down
Upon a road
Twisting and unwinding
For this, I gave my all
I gave my all.
“I'm lookin' for a road
I'm lookin' for a road
I'm lookin' for a road
Again.” 1
Thank you for opening the pages to this book. I'll tell you why I wrote it.
The future of the US economy—and, indeed, the world's—will be determined at the dynamic intersection of markets, technology, and politics. The interplay of these determines the cost and availability of the food we eat, the energy that heats our homes, the electricity that powers our smartphones, our mortgages and auto loans, and, ultimately, the money we use to pay for all of these. It determines the continued affordability of the vaunted “American way of life.”
I have spent a 37-year career in that economic intersection, first as a Wall Street lawyer and later as a finance executive. I then served for 5 years at its center at one of the world's least understood yet most important market regulators, the US Commodity Futures Trading Commission, known as the CFTC. It was there that, quite unexpectedly, I glimpsed the most profound change in generations: The rise of the Internet of Value, Bitcoin, and cryptocurrencies.
So this book is, in part, a personal one about how I have navigated my professional path in a radically changing world. But I hope it is much more than that. It is also a call to arms. Based on what I have seen, I believe democratic society faces an urgent need to courageously confront the extraordinary transformations wrought by the Internet of Value that will intimately affect the daily lives of each and every one of us. They must be shaped by a free people.
Here's why I say that. Let me begin with three key observations about financial markets.
Antiquated Infrastructure
First, consider that America's physical infrastructure—its bridges, tunnels, airports, and mass transit systems—that were cutting edge in the last century but have been allowed to age and deteriorate in the current one.
Sadly, the same is true about much of our financial infrastructure, both in the United States and in many developed Western economies. Systems for check payment and settlement; shareholder and proxy voting; investor access and disclosure; and financial system regulatory oversight—once state-of-the-art and global models in the twentieth century—have fallen behind the times in the twenty-first century. In some cases, embarrassingly so.
This aging financial system puts developed economies like the United States at a competitive disadvantage to the likes of China that are building new financial infrastructure from scratch with twenty-first century digital technology. Here's a good example: it typically takes days in the United States to settle and clear retail bank transfers. In many other countries it takes mere minutes, if not seconds. It also takes days to settle securities transactions and weeks to obtain land title insurance. It is still often faster to move money around the globe by stuffing cash in a suitcase and carrying it on a plane than it is to send a wire transfer.
Nothing better reveals the limits of our existing financial system than the US government's initial financial response to the COVID-19 pandemic in the spring of 2020. Tens of millions of Americans had to wait a month or more to receive relief payments by paper check. More than a million payments were made to people who were dead.
Internet of Value
A second observation is that these aging financial and regulatory systems are struggling to adapt to the next wave of digitization that I and some others call the “Internet of Value.”2
The first wave was the Internet of Information. Wikipedia is an example and emblem of that first wave: a massive decentralized, online reference authority composed collaboratively by volunteers. That initial wave took information written, owned, and controlled by elite publishers like Encyclopedia Britannica and democratized it, rendering it easily accessible at a keystroke, anytime, anywhere, and for free.
That first Internet wave was superseded by another: the “Internet of Things.” Thanks to this wave, seemingly every place we shop and dwell, everything we wear and drive, and every device we engage with is connected to the Internet.
We
