TOLLBOOTHS, NOT BILLBOARDS: THE PARADIGM FOR INTERNET BUSINESS

Money in general, and cash in particular, is not a fixed and independent entity. Cash has always changed its nature to reflect the requirements for its use. As society has shifted from the predominantly agricultural ‘first wave’ through a predominantly industrial ‘second wave’ to the information‐based ‘third wave’, so cash has mutated to meet the needs of society. The relationship between the needs of commerce and the nature of cash is, however, one of feedback and reinforcement: the development of paper money, for example, not only supported but drove the development of banking systems to facilitate widespread commerce. Developments in IT mean that the ability to maintain property rights and exchange cash in ‘cyberspace’ is now feasible. Thus, as the infobahn causes shifts in demand for commerce and banking services, these shifts will feed back and accelerate changes in the nature of commerce. The widespread implementation of electronic property rights and electronic cash (e‐cash) — the former linked to personal and corporate identities, the latter anonymous — will therefore catalyse change in banking and commerce. This article draws on some of Hyperion's recent experience in helping to develop the Mondex e‐cash scheme (and other projects, ranging from the re‐engineering of financial institutions to procuring advanced communications networks for developing countries) and attempts to extrapolate and speculate to help businesses plan for the future