A short surmise on tech and trade and potential demise of currencies to support the exchange of goods
FT published an article about how US wielding of the greenback as a weapon it its sanctions plan (if there is any) is pushing countries to search for other clearing mechanisms to post trades.
Books covering the emergence of currency postulated about the simplicity it gave when exchanging goods among a wide variety being offered: among ten goods there are 45 possible pairs — and prices.
That was then when accounting and book-keeping methods were done on paper, enabled by personal trust. Today this can be traced, recorded and audited by tech, allowing for barter to return.
[a man has an intrinsic] “propensity to truck, barter, and exchange one thing for another,” and that this happy tendency was nothing more than human nature “of which no further account can be given.” — Adam Smith
The coverage of the EU planned Iran exchange mechanism, designed to stoke the ire but escape the leash of the US is effectively a barter system: a shell of an SPV organizing and tracking mirror-trade clearing mechanisms. The transactional components of money — medium of exchange, unit of account — are being disrupted by tech.