(Up to: Economics Identity Theft )

The over-hyped buzzword of the decade is "identity theft", but whie it may now be being bandied around like a common cold, there's an underlying evolution revealed by its presence. The onslaught of large databases and fast communication developed over the last 40 or 50 years has, I think, led to a vast shift in the way we trade with each other and will, ultimately, lead to a world in which money is as antiquated as steam power. The change has already begun.

In its place are growing systems that are intent on "re-humanising" our trade system. The phrase "identity theft" reveals that our idea of "money" is becoming increasingly dependent on the person that /owns/ the money - in effect, your money is worthless unless you can prove you are who you say you are. The power over authenticity, traditionally held by Minting Facilities, is now in the hands of the Reputation Networks - the banks, and anyone else that promises to couple a row in a database with a real-life person, or business. This will soon include those governments who are increasingly looking to issue holistic, electronic IDs, although how much they realise the effect of this on trade is debatable. I suspect they are aware of it.

For this reason, I say money is dead. Economics will soon merge with reputational theory and other fields such as social networking, as the old dregs of physical currency seep away to become the playthings of small communities intent on independence. The big businesses already own the Personal Identification market, and I wouldn't be surprised to see laws regulating against providing alternative schemes - for "security" purposes, of course. Give it 30 years. 20?

Unfortunately, I think this coupling may also have an inverse effect. Just as money depends on people, so the definition of a person will therefore increasingly depend on money, and as the majority of people are currently in debt, is it fair to say that as we go forwards, this same majority will be similarly "owned" by their creditors?

Slashdot: Identity Theft Happens Predominantly Off-line

Cash still works ;)