If you’ve been following The Financial Transactions of the Future Economy(TM) Show and Podcast you may have seen our recent episode on the splintering of the world economy.
I think it’s an important issue so I’ve decided to write about it in more detail here.
It is the hosts’ combined belief that current regulations may lead to a fracturing of the world economy and increased separation and regionalism.
How can we make such a bold prediction?
Right now we are watching the beginnings of it. Each major power of the world wants transactions done their way. The Europeans have declared to have jurisdiction over anyone in the world controlling or processing the data of an EU citizen. The United States has declared jurisdiction over international transactions if Americans are significantly involved or if a portion of the transaction happens in the US. In a somewhat shocking extension of existing law the United States’ Commodities Futures Trading Commission (CTFC) – who has a court supporting it’s jurisdiction over cryptocurrency – has stated it will go after programmers who write programs that the programmers know might violate US law. While unclear this seems to indicate the CFTC may go after programmers anywhere in the world. (For more on the CFTC position see this show: https://youtu.be/mQg9TRy9QrQ)
Meanwhile the Chinese government wants a version of Google developed to answer certain questions the way the government approves.
The clear implication is that the major powers in the future economy: The US, China an Europe all want full control. Russia is being kinda quite but we assume they want control too.
So What’s A Company To Do?
So what do you do in this world? A programmer or company now has two choices: comply with the laws of every country of the world or limit the use of their products, software and output to regions of the world.
With the compliance cost being high we thing the common answer will become clear. More and more will choice to have regional version of their products limited to that region.
We’ve already seen US Companies not making their products available to Europens due to GDPR. We expect the flip will be true. We’ve also heard many transactions being structured to avoid the involvement of US persons.
A New Era
While prior eras brought the world together we expect the next era will bring the world apart.
We invite you to comment and let us know what you think this means for the world, it’s future and humankind.
You can see a video discussion of splintering and additional issues on The Financial Transactions of the Future Economy(TM) Show and Podcast here.
The Our Shawn
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