These days there is great asymmetry with money: the more it’s in the news the less it’s in our pockets. Inflation, the price of oil, shortages of fundamental stuff like wheat and microchips, all contribute to this period of uncertainty and volatility.
What to do? How do you make your hard-earned cash go further and ensure that what you have does not lose value? I am no financial advisor and will not dish out any wisdom here. But you will have noticed pundits and commentators talking about gold, real estate, the Swiss franc. Add to that the growing allure of cryptocurrencies and NFTs. The landscape we’re seeing feels like a frantic race to understand what’s happening to money in a volatile and uncertain world, peppered with hard-hitting global news with a sprinkling of never-ending Covid-19, climate change impacts and so much more.
Whether it’s gold or money, a central goal of a currency is providing the bearer with the confidence that value is maintained for longer than it takes for bananas to turn brown.
So, before going any further: breathe. And let's start with the basics. What is money and what future might we see for it? Money has three attributes. First, it is a medium of exchange, making bartering easier and painless. Second, money is a unit of account, a sharable good that is quantifiable to everyone. Third, it is a store of value: one dirham, dollar, rupee or euro is the same today (valued in its own terms) as it will be in a week. This is different to, say, bananas: if bananas were your store of value, you’d notice that, after a week or two, your ability to purchase anything with them will have reduced dramatically because nobody wants limp bananas.
Of the three attributes of money, the store of value is perhaps the most central to the future of money. Looking back, money was made of gold, silver or other valuable material, conferring it intrinsic value. Eventually, paper money was issued and backed by a precious metal reserve deposited in a secure facility. Money owners could exchange money for the equivalent in gold or silver. This direct linkage limits a government’s ability to steer the economy, so a de-linking from silver or gold reserves was completed by the 20th century. Now currencies are backed by government, or rather the faith and trust in a government being able to maintain the value of the currency. This is fiat money.
Then there is digital money. Two years ago, the Dubai Future Foundation published a report on the future of money – The Impact of Crypto-assets on State Currencies. Like others before us and since then, we examined the rise of technologies that underpin digital currencies. Bitcoin is but one of the many cryptocurrencies that have emerged on the back of blockchain, the technology that secures and digitises currency or other assets. While the term “currency” is closely tied to crypto assets, economists like Nouriel Roubini argue that they don’t meet the three criteria of a currency – most places don’t take Bitcoin to purchase coffee, for example. Also, given Bitcoin’s volatility over the years, it’s hard to see how it is a stable store of value. Unless, of course, the currency used to purchase these crypto assets are even less of a store of value and more volatile. There are increasingly such cases.
It is also the crux of the matter: whether it’s gold or money, a central goal of a currency is providing the bearer with the confidence that value is maintained for longer than it takes for bananas to turn brown. If that period of time is not days or weeks but years or even decades, we might need to think of a new concept that constitutes currency. That concept, in the future, is likely to incorporate both old and new concepts of money. Roubini and his colleagues at Atlas are working on devising a tradable blockchain-secured digital token that is backed by real stuff – a "stablecoin" of sorts. In their case the token’s value is conferred and backed by gold, government bonds and other real-world assets. They are not the first to hatch this kind of idea and such an approach draws an arc from the past to the future: security of a digital currency without the hype-factor of a potentially baseless cryptocurrency issuance, where anyone can be a central banker and issue their currency, supported by the stability of a basket of real-world assets.
Whether we like it or not we live in a globalised world, so the assets backing this token will likely benefit from a global mix, which may strengthen the outlook for store of value. Just imagine: could a basket of global assets, turned into a digital token become an actual currency, which can be transferred between people and used directly in shops? This could mean that in the future money still has the three key attributes of being a unit of exchange, a unit of account and a store of value, but it could reflect a balanced-out confidence that is not tied to any single country nor to any single asset. And importantly for everyone on this volatile planet: will this digital money retain value when exposed to the long-wave impacts of climate change and all that follows? Whatever the future of stores of value, and the need for it grows relentlessly, I for one am not bulk-buying bananas.
The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
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Need to know
When: October 17 until November 10
Cost: Entry is free but some events require prior registration
Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center
What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.
For more information: www.koreafestivaluae.com
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
Vaccine Progress in the Middle East
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
