Question: Will the rise of the Internet and modern technology revolutionise the banking industry the same way it has the music, newsprint and publishing industries?
I was thinking, when money becomes completely digital and all financial transactions are electronic, it will, firstly, be easier and cheaper to set up new banks, without the need for high street branches, etc, resulting in more competition. And secondly, much harder to keep up this fractional reserve charade - once every financial transaction is recorded electronically, we’ll, theoretically, be able to track the history of every individual pound and penny, from inception to its current location. Any new money created, be it by bank or government, will be readily apparent, assuming the information is freely available, of course.
Is this just wishful thinking, or is it a realistic possibility?