I joined Dominic Hobson on the Future of Finance podcast to discuss the evolving role of digital assets and the future architecture of financial systems.
When I wrote The Great Transition, I argued that blockchain technology would move finance away from centralised market platforms towards a distributed, networked model where individuals interact directly with each other. Digital assets were expected to enable a more personalised and democratised financial ecosystem.
What we are seeing today is different.
Rather than decentralisation taking hold, traditional financial markets have absorbed digital assets into the structures they already understand. Cryptocurrencies and tokenised instruments are increasingly treated as tradable assets within capital markets, complete with derivatives, liquidity structures and institutional participation.
In our discussion, we explore the distinction between market economies and network economies, and why digital assets today derive most of their value from markets rather than from network utility.
We also discuss stablecoins as a transitional instrument, the role of institutional capital in shaping the ecosystem, and why artificial intelligence may become a key driver of the network economy.
AI agents interacting across digital environments may eventually require tokenised mechanisms to transmit value, creating new forms of financial infrastructure that operate beyond traditional intermediaries.
Here’s what we discussed:
- Why financial markets have absorbed digital assets into traditional structures.
- The difference between market and network economies.
- The evolving role of stablecoins.
- Why institutional capital alone will not build the network economy.
- How AI could reshape financial infrastructure.
Watch the full conversation:
Listen to the full podcast:
