Smart Money - by Brunello Rosa & Casey Larsen (Hardcover)

About the Book

An urgent and timely manifesto on how digital currencies will win the New Cold War and the struggle for geopolitical supremacy in the twenty-first century.

Book Synopsis

A FINANCIAL TIMES ECONOMICS BOOK OF THE YEAR

'An excellent book' VINCE CABLE 'A must read' JO JOHNSON 'A fascinating read' BILL DUDLEY

A timely manifesto on how digital currencies will win the New Cold War and the struggle for geopolitical supremacy in the twenty-first century.

A New Cold War is underway. Whereas the first Cold War was dominated by the threat of nuclear conflict, the new front line is economic and financial, but still dominated by technology. Who controls its future will help decide the outcome of the geopolitical struggle between China and the US.

Since the end of the Second World War, the US dollar has been the global reserve currency, which has ensured American dominance of the world economy. But no longer. More than a hundred countries are developing Central Bank Digital Currencies (CBDCs), digital equivalents to cash that will utterly transform how we do business at home and abroad.

China was the first country to recognise the potential of this new money. The West's media focused on the new currency's role in China's surveillance state, creating widespread concern about all CBDCs. But they have largely overlooked a more important aspect of its existence: as a tool through which to 'de-dollarise' the developing world at the speed of light. When China's President Xi Jinping officially launched the digital yuan in February 2022, he also agreed a pact of 'limitless co-operation' with Russia. Within days, Russia launched its war on Ukraine, secure in the knowledge it could bypass US sanctions.

Urgent, clear-eyed and groundbreaking, Smart Money shows us how CBDCs are going to impact all of our futures in ways that most of us have failed to even consider. If the West is to compete, it needs to act fast to develop its own global digital currencies that reflect the values of liberal democracies.

Review Quotes

"This excellent book takes us into a world where Central Bank Digital Currencies are a fact of life. The Chinese have, inevitably, got there first and among the many implications of this new world is the long-awaited shift from dollar hegemony" --Sir Vince Cable, former Secretary of State for Business and Trade

"This book is the first comprehensive account of the large-scale impact of central bank digital currencies on the global economy and the wider geopolitical landscape. With a broad historical foundation and analytic rigour, it is a must read to understand the future of money and how it will impact all of our lives" --Jo Johnson, Baron Johnson of Marylebone

"Money, and how money is being used, has always been intertwined with wealth and power and an integral part of the political economy . . . This change goes well beyond the technical transformation and has economic and political consequences both nationally and internationally. In this book, the ramifications are explored in an interesting way with important food for thought" --Stefan Ingves, former governor of Sverige Riksbank

"Professor Rosa's work looks at the opportunities and risks of CBDCs, but then moves further by identifying the geopolitical implications, in particular global macroeconomics and reserve currencies. Rosa's conclusion is that either embracing or rejecting CBDCs pose immense consequences that we need to understand. This book is a great place to start understanding" --Michael Mainelli, Lord Mayor of the City of London

"Smart Money is the essential book to read to understand the geopolitics of CBDCs. Central bank digital currencies, far from being just a technical addition to the list of central banks' liabilities, have the potential to massively disrupt global trade and the financial system as we currently know them. They will be used by the geopolitical rivals of the West as a trojan horse to push further the ongoing de-dollarisation processes, and - in doing so - to redefine global geo-strategic equilibria" --Nouriel Roubini, CEO of Roubini Macro Associates and co-founder of Rosa & Roubini Associates

"A fascinating read that demonstrates the high stakes geopolitically if the US should continue to dawdle in developing a viable CBDC" --Bill Dudley, former President of the Federal Reserve Bank of New York

"This, then, is a battle over who controls what the book calls "the payment rails" on which the world economy will run. The argument is both important and open to question" --Financial Times

About the Author

Brunello Rosa is a financial economist and geopolitical strategist who advises market participants, policy-makers and institutions. He is the CEO and head of research of Rosa & Roubini Associates, a visiting professor at City, University of London and Bocconi University in Italy. Casey Larsen is a British-Swiss writer and strategic communications consultant. Casey advises political and business leaders on geopolitics, technology and international affairs.