Developing a global financial architecture
Originally @ TechCrunch An odd paradox exists in the way capital moves around the world — or doesn’t — from developed to developing countries. A few specific technology hurdles halt the flow of money, at the personal level, from transferring wealth to and investing in emerging markets. Issues with ledgers of exchange, unique identifiers, transfer costs and points of access all impact capital flows across borders. Innovative firms have made strides developing solutions for each, but a comprehensive technology answer still remains to be found. “A World Awash in Money” On a global scale, western economies are awash in cheap investment capital chasing anemic returns. Capital in the global financial economy is so plentiful that central banks in countries like Sweden, Switzerland and Japan now offer negative interest rates on deposits. This means that investors essentially have to pay to “park” the funds that they can’t invest — and choose to do so en masse because the nominal lo