31 March 2015

The New Business Model

Tracy Bramlet - The New Business Model

25Posts 109,395Views 3Comments

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

If FaceBook can invent its own money--Why can't you?

25 January 2011  |  6209 views  |  4

The idea of a virtual marketplace is no longer new--companies like Second Life have already proven the viability of creating money out of nothing. Last year, Second Life's user-to-user transactions topped $567 million in real U.S. currency and their users, known as residents, cashed out $55 million in real Second Life earnings.  That's a whole lot of moolah. So should anyone be surprised that Facebook wants to get on the money train by creating their own virtual currency?  And if Facebook succeeds, who will be next?

My best guess - Apple - and not just because of my ongoing love affair with the Mac.  But rather, because of the interconnected and multi-pronged world that is Apple. With iTunes, iPod, iBook and of course the iPad.  Apple has a deeply entrenched and loyal community of millions  (maybe billions) from which to build a virtual currency that could potentially be used by more people than currently live in several mid-sized nations.  A community that is already well established and primed to adopt not only the latest technology but also the latest consumer behaviors. Moreover, it is a group that spans both the individual consumer market as well as the high-dollar corporate one - a fact that could rapidly translate into really big money not only for Apple but also for the application developers and financial institutions that would be needed for it to achieve success with a virtual currency.

So if Facebook succeeds and then some organization like Apple also decides to get on board the virtual money train - the possibilities may be endless. One day soon, we may all wake up and find that instead of the EURO, Dollar and Yen, our paychecks are coming in the form of the Apple, the Facebook or the Kia currency. Who knows maybe one day, I'll be able to use "Tracy" dollars for my next MAC upgrade. I only need a couple of million followers to make it happen; right?

TagsOnline bankingPayments

Comments: (4)

Keith Richbell - eftpos Payments Australia Ltd. (ePAL) - Sydney | 27 January, 2011, 02:11

Well said Tracy - you are spot on with your assessment. I would add Google to your short list of companies who might reinvent money. Could this be the beginning of the end for the card schemes?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Tony Waszkiewicz - swallow tech - London | 27 January, 2011, 09:30

Tracy, you don't need a couple of million followers. In 2007 Totnes, a small market town in Devon with a population of 7,500, was the first town in the UK to introduce its own local alternative currency, the Totnes pound. The initiative is part of the Transition Towns concept a rapidly growing global movement that urges local communities to "respond to the challenges, and opportunities, of peak oil and climate change". Now there are several other towns with their own currency. I have a Brixton pound on my desk right now, it's worth more than my Zimbabwe trillion dollar notes:-)


After all fiat money is backed by nothing more than acceptance of value.


Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Matt White - Finextra - Toronto | 27 January, 2011, 10:40

We covered the Brixton currency here.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Ainsley Ward - Clear2Pay - Diegem | 01 February, 2011, 05:48

One of the first issues that companies such as Apple will need to overcome is the physical separation of markets within their own organisations. For example you can't currently send a gift in iTunes from a Belgian account to a French one - depsite the same currency. So even if they launch a single currency for iTunes (Apple pips?) it is still a national solution.

Virtual currencies have their merits and certainly work in single use or closed loop situations. However, the lack of control from a Government point of view (mostly taxation) means that as soon as they get to a certain size, the regulatory authorities will begin to find ways to limit them - examples Tencent QQ coins, PayPal in India.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Tracy

If FaceBook can invent its own money--Why can't you?

25 January 2011  |  6209 views  |  4  |  Recommends 2 TagsOnline bankingPaymentsGroupInnovation in Financial Services

Just Because We Can Do a Thing

26 May 2010  |  5914 views  |  0  |  Recommends 1 TagsSecurityRisk & regulationGroupData Management 101

My Image...My Blog...My Bank..No Way

26 February 2010  |  7154 views  |  1  |  Recommends 0 TagsSecurityRisk & regulationGroupCringeworthy marketing gallery

You like me....you really really like me...

14 October 2009  |  5464 views  |  1  |  Recommends 2 TagsPaymentsWholesale bankingGroupTransaction Banking

Tracy's profile

job title Marketing Guru
location Westerville
member since 2008
Summary profile See full profile »
In the old days many companies looked at the marketing department purely as a cost center. But marketing is about much more than a glossy brochure and slick commercials. I help corporate and non-prof...

Tracy's expertise

What Tracy reads
Tracy writes about

Who's commenting on Tracy's posts