Finance 4.0—Towards a Socio-Ecological Finance System a Participatory Framework to Promote Sustainability

Dapp, Marcus M., Dirk Helbing, and Stefan Klauser, eds. Finance 4.0 - Towards a Socio-Ecological Finance System: A Participatory Framework to Promote Sustainability. SpringerBriefs in Applied Sciences and Technology. Cham: Springer International Publishing, 2021. https://doi.org/10.1007/978-3-030-71

114 Pages Posted: 28 Jun 2021

See all articles by Marcus M. Dapp

Marcus M. Dapp

ETH Zürich

Dirk Helbing

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS)

Stefan Klauser

ETH Zürich

Date Written: May 15, 2021

Abstract

This Open Access book outlines ideas for a novel, scalable and, above all, sustainable financial system.

We all know that today’s global markets are unsustainable and global governance is not effective enough. Given this situation, could one boost smart human coordination, sustainability and resilience by tweaking society at its core: the monetary system? A Computational Social Science team at ETH Zürich has indeed worked on a concept and little demonstrator for a new financial system, called “Finance 4.0” or just “FIN4”, which combines blockchain technology with the Internet of Things (“IoT”).

What if communities could reward sustainable actions by issuing their own money (“tokens”)? Would people behave differently, when various externalities became visible and were actionable through cryptographic tokens? Could a novel, participatory, multi-dimensional financial system be created? Could it be run by the people for the people and lead to more societal resilience than today’s financial system (which is effectively one-dimensional due to its almost frictionless exchange)? How could one manage such a system in an ethical and democratic way?

This book presents some early attempts in a nascent field, but provides a fresh view on what cryptoeconomic systems could do for us, for a circular economy, and for scalable, sustainable action.

Keywords: financial system, blockchain, sustainability, crypto currency, token, bitcoin, smart contract

JEL Classification: E3, G10, G20, O30, Q01, Q51

Suggested Citation

Dapp, Marcus M. and Helbing, Dirk and Klauser, Stefan, Finance 4.0—Towards a Socio-Ecological Finance System a Participatory Framework to Promote Sustainability (May 15, 2021). Dapp, Marcus M., Dirk Helbing, and Stefan Klauser, eds. Finance 4.0 - Towards a Socio-Ecological Finance System: A Participatory Framework to Promote Sustainability. SpringerBriefs in Applied Sciences and Technology. Cham: Springer International Publishing, 2021. https://doi.org/10.1007/978-3-030-71, Available at SSRN: https://ssrn.com/abstract=3868116

Marcus M. Dapp (Contact Author)

ETH Zürich ( email )

Rämistrasse 101
ZUE F7
Zürich, 8092
Switzerland

Dirk Helbing

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS) ( email )

ETH Zurich - Swiss Federal Institute of Technology
Clausiusstrasse 50
Zurich, 8092
Switzerland

HOME PAGE: http://www.coss.ethz.ch

Stefan Klauser

ETH Zürich ( email )

Zürichbergstrasse 18
8092 Zurich, CH-1015
Switzerland

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