In a world where money is an integral part of our daily lives, it is fascinating to explore its origins and impact on human society.
After the idea of divinity, money was the second discovery of the human mind that broke the human species from biology,” as the saying goes. This ground-breaking discovery opened up a world of endless chances for social and economic evolution – a perpetuum mobile of possibilities…
The act of engaging in financial transactions and exchanges has become a profound focus of contemplation for many, but also generated various contradictory societal reflections.
Engaging in a conversation with Viktoria Soltesz feels like an exchange of narratives and histories about the concept of money and payments.
A Narrative Paradigm about “Moving Money – How Banks Think’’
TechvangArt welcomes you to a dialogue with Viktoria Soltesz – Founder and CEO of PSP Angels Group . We will uncover new stories about money by examining the past, present, and future.
Join us on a journey that helps us to understand future developments in the field of payments and currency, especially in light of emerging technologies such as XR and the monetization of virtual worlds.
TVA: You’ve recently launched a book, “Moving Money – How Banks Think,”– and it is coming into an interesting moment. . The financial system has continually evolved, and you describe these changes in your book. Can you explain how these changes have developed over history and what we can expect in the future?
VIKTORIA Soltesz: Yes, I wrote “Moving Money – How Banks Think” out of frustration because there was no concise information about payments and banking available. Payments and banking involves many areas, such as accounting compliance technology, etc. Since the majority of the payments globally are now happening online, fintech became very complicated. Every company has to keep up with the new regulations and rules however everything is changing all the time. It seems like everybody has a problem and no one has the answer .To understand how banks operate, we need to look back at the history of the banking system and its evolution.
Traditional banking began when tribes traded goods, like wood for bread. Eventually, we moved to a commodity-based system, where something represented value even if it had no intrinsic value, like casino chips. After the Second World War, the world faced an economic crisis. The United States, with the strongest economy, pegged the US dollar to gold, creating the Bretton Woods Agreement, which stabilized and backed the dollar.
This worked for about 30-40 years until the demand for currency exceeded the available gold. In 1971, Nixon unpegged the dollar from gold, and now, all major currencies are backed by trust in the system rather than physical commodities.
Maintaining trust in the financial system is crucial. Banks ensure no one cheats on taxes or commits financial crimes, keeping the economy stable. This is why banks ask many questions—to maintain security and a healthy economy, both domestically and globally. TVA: You mentioned trust, which has always been vital in financial systems. With the advent of blockchain, people talk about using it and cryptocurrencies to avoid banks. How do you see this new shift in trust towards blockchain?
how do you see this new shift in TRUST towards blockchain?
VIKTORIA Soltesz : Unfortunately, relying solely on a decentralized system like blockchain has proven inefficient. Historically, economies based purely on supply and demand, without central regulation, have faced market manipulations, such as the 1920s financial crisis. Without regulation, people often evade taxes and try to outsmart the system. The same issues arose with cryptocurrencies: scams, market manipulation, and pump-and-dump schemes.
Regulation is essential to protect people and maintain economic stability. Although our current financial system isn’t perfect, it is the best we have developed through years of experience, regulation, and innovation.
New technologies and innovations will always require regulation to ensure they benefit society as a whole.
TVA: Speaking of innovation, how do you see payments evolving in virtual worlds, such as the Metaverse?
VIKTORIA Soltesz : To understand payments in virtual worlds, we need to consider the basis of these virtual realities. In real life, we need to ensure taxes are paid and crimes like money laundering are prevented. In virtual worlds, there are fewer regulations. For example, there’s a game where you can earn points in a virtual casino and exchange those points for real money. This can facilitate money laundering if not regulated. The online world is very complex and will give us serious subjects for concern in the future.
We must ask ourselves: What are the rules in virtual worlds compared to real life? Should virtual activities like gambling for minors or illegal trades be regulated similarly to the real world? I believe future regulations will mirror real-life regulations, ensuring activities in virtual worlds adhere to similar standards. Payments within virtual ecosystems should be regulated at entry and exit points to prevent money laundering and ensure taxes are paid.
TVA: Many people believe blockchain is the solution to numerous problems, yet it also has its critics. How do you view its potential future?
VIKTORIA SOLTESZ : Blockchain technology is incredible because it enables a transparent and secure ledger system. However, it has faced challenges due to less regulation, and anonymity, leading to misuse. While blockchain’s transparency and security are strengths, its association with financial institutions and currencies has overshadowed its potential. If blockchain had remained a transparent ledger for record-keeping, it might have seen more success. The main issue is that a few individuals control the market, leading to opportunities for market manipulations. Anonymity opened the word for scams. This created serious trust issues and hindered mass adoption.
For blockchain to fulfil its potential, it needs proper regulation and development. Trust will still need to be placed in some central figure, ensuring the system is maintained and operated correctly. Even the most fair system humanity could come up with, democracy, would end in disaster if no control measures were introduced. Human nature is greedy and not forward-thinking at all. If people could vote for whatever they want, the first thing they would vote for is to eliminate taxes. Only centralization can balance innovation with the necessary oversight to prevent misuse and ensure stability.
As we have become accustomed at the end of the interview, TECHVANGART asked some – Crazy Questions
TVA: What would you choose as a new profession in a society without money?
VIKTORIA SOLTESZ: Creating money. Society will always need some sort of value unit, that they can rely on for international trade. Without money there is no development, and progress.
TVA: If you were to write a book in a society without money, what would it be titled?
VIKTORIA SOLTESZ: It could be “Transferring Value: How Value Transfers Ownership and the Associated Risks and Costs.” The concept remains the same, even if money is replaced by something else.
TVA: Thank you very much, Viktoria. Where can readers find more about your book and your work?
Viktoria: Thank you. My book, "Moving Money - How Banks Think," is available on Amazon. I'm always open to discussing ideas and making new connections, so feel free to reach out to me on LinkedIn or through my company, PSP Angels.
INFO ABOUT THE AUTHOR OF THE BOOK
Viktoria Soltesz is the Founder and CEO of PSP Angels Group, and is a renowned authority in the payment industry. With a vast network of banks, financial institutions and payment providers, she provides expert guidance to businesses navigating the complexities within banking and payments.
Viktoria’s expertise extends to understanding the banking risk appetite, licensing requirements, fees, and market trends, ensuring that her clients are equipped with the knowledge needed to make informed decisions.
PSP Angels personalized payment consulting services encompass everything from setting up strategic payment plans and facilitating cross-border fund transfers to mitigating banking risks and optimizing tax and cash flow
In her book, “Moving Money: How Banks Think” Viktoria explores the ever-changing world of online payments. Using her extensive experience, she shares important insights and real-life stories on how payments influence our daily activities, the economy, and various industries. Her book focuses on the future of finance, giving readers a clear view of fintech innovations such as digital wallets and blockchain technology, and how payment innovations are changing the world.
Visit viktoriasoltesz.com where you can read more about Viktoria and her work.
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