Cash Will Disappear: Power Lies With Money Control

Weekly Strategies for Family Offices & Cash-Positive Businesses: Take Control, Protect Wealth, and Build a Lasting Legacy

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The Internet of Values
February 09, 2025

  • The future is Digital Cash: Andreas Antonopoulos, 2016 

  • The Shift to a Digital Cash Society: Risks & Considerations for Family Offices

  • Sovereign Fund vs Reserve currency

  • Bitcoin as financial assets used in Sovereign Funds and Reserve

In 2016 on the future of Digital Cash: Joe Rogan Experience Podcast #844 - Andreas Antonopoulos

Andreas Antonopulos is one of, if not the maximum expert in blockchain and bitcoin. He is the reason why many felt into the blockchain/bitcoin rabbit hole in 2016-2017. He is a technologist, security expert, and serial entrepreneurs.

He is the author of two iconic books: “Mastering Bitcoin” 2014, published by O’Reilly Media and considered the best technical guide to bitcoin and “The Internet of Money” 2013, a book about why bitcoin matters translated in almost every language.

He used to speak at congresses, podcasts, and governments, all over the world. 

This is what he forecasted 8 years ago, during an interview at the Joe Rogan Experience podcast ⬇️ 

The Shift to a Digital Currency Society: Risks & Considerations for Family Offices

The world is moving toward a digital currency society—whether gradually, through the declining use of cash, or rapidly, as governments impose restrictions and outright bans on physical money. Cash transactions are already being limited in many countries, and exceeding those limits is becoming a legal risk.

This shift carries profound implications for financial sovereignty, privacy, and wealth control. In a world where all transactions are digital, governments, banks, and corporations can exert total control over capital. Payments, political views, associations, free speech, social media accounts, and even access to banking services could be monitored, censored, frozen, or seized.

Today, when we pay for goods or services without cash, we rely on financial intermediaries—Visa, Mastercard, PayPal, Venmo—each operating within a banking system that is ultimately controlled by central banks. These central banks, government-owned, regulate monetary supply, set interest rates, and act as lenders of last resort.

Corporations → Bank → Central Bank → Governments

Meanwhile, retail and business bank accounts remain subject to regulatory oversight, making private wealth increasingly exposed to political and financial risks.

As Andreas Antonopoulos highlights, tipping is one of the last remaining forms of peer-to-peer cash exchange—one of the few transactions that remain beyond institutional control. But as corporations, banks, and governments take a cut from every digital transaction, their ability to monitor, restrict, or even weaponize financial systems grows.

Senator Cynthia Lummis: Your views shouldn’t be relevant to your banking business ⬇️ 

For family offices focused on wealth preservation and generational stability, the question is not just about convenience but control. The mere act of being on the wrong side of a shifting financial landscape—without committing any illegal activity—could present existential risks to wealth and financial freedom.

Now is the time to explore diversification strategies, alternative assets, and mechanisms that ensure capital remains sovereign, secure, and accessible—no matter how the financial system evolves.

SOVEREIGN FUNDS vs RESERVES long term investment vs short term liquidity

Sovereign wealth funds, SWFs, are investment vehicles, owned by countries, that manage the country’s reserves for long term investments crucial for solidifying and stabilizing economic growth, as well as establishing a strong country positioning within the complex landscape of geopolitical dynamics.

  1. Government-Owned: Managed by the state or government entities.

  2. Long-Term Investment Focus: Invests in assets like stocks, bonds, real estate, infrastructure, and private equity.

  3. Diversification & Stability: Helps protect the country's economy from economic shocks and provides financial stability.

  4. Funded by Surpluses: such as profits from natural resources (like oil or gas), trade surpluses, or foreign exchange reserves from commodity exports or trade surpluses.

Larry Flint: If your are frighten of you currency debasement or political stability of your country, you can have an internationally based instrument called bitcoin ⬇️ 

Reserve are for short term liquidity. While sovereign wealth funds are for long-term investment and growth, foreign exchange reserves (or simply "reserves") are for stability and liquidity. SWF and reserves serve different purposes and are managed differently.

  • both involve government-controlled financial assets

  • Some countries transfer excess foreign exchange reserves into sovereign wealth funds for better long-term investment opportunities.

  • Central banks use reserves mainly for monetary policy, while sovereign funds aim to grow wealth over time.

David Sacks: says we are going to evaluate a Bitcoin Reserve.⬇️ 

Key Differences Between a Sovereign Wealth Fund (SWF) and Reserves

Feature

Sovereign Wealth Fund (SWF)

Foreign Exchange Reserves

Purpose

Long-term wealth creation, economic diversification, and investment

Short-term liquidity, currency stability, and crisis management

Managed By

A specialized investment authority or government agency

Central bank (e.g., Federal Reserve, European Central Bank)

Source of Funds

Surplus revenues from natural resources, trade surpluses, or foreign exchange reserves

Foreign currency earnings from trade, foreign investments, and monetary policies

Investment Strategy

Invests in stocks, bonds, real estate, private equity, infrastructure, and other assets

Held mostly in liquid assets like gold, foreign currencies, and government bonds

Risk Level

Generally higher risk with a long-term focus on returns

Low risk, as reserves need to be liquid and stable

Example

Norway’s Government Pension Fund Global (GPFG), Abu Dhabi Investment Authority (ADIA)

China’s $3 trillion+ in foreign exchange reserves, U.S. gold reserves at Fort Knox

Why the US didn’t have a Sovereign Wealth Fund before?

Sovereign wealth funds generally exist in countries that either have large foreign exchange reserves, such as China, or revenue from the sale of oil or other commodities, like Norway and Saudi Arabia. The US, however, has consistently run budget deficits in recent years.

NORWAY’S largest world Sovereign Wealth Fund

Government Pension Fund Global, commonly known as the Oil Fund, is the world's largest sovereign wealth fund, with assets totaling approximately

$1.8 trillion

  • Equities: Approximately 70% of the fund is invested in global equities, making it a significant shareholder in numerous companies worldwide.

  • Fixed Income: Around 25% is allocated to bonds, including substantial holdings in U.S. government bonds.

  • Real Estate and Renewable Energy: The remaining portion is invested in real estate and renewable energy infrastructure.

Top Equity Holdings:

As of December 2024, the fund's largest equity investments include:

  • Microsoft: $41 billion

  • Apple: $35 billion

  • Nvidia: $34 billion

  • MicroStrategy $500M

Micheal Saylor rebranded Microstrategy in - Strategy B ⬇️ 

Other Europeans Sovereign Wealth Funds

  • Italy: The Cassa Depositi e Prestiti Equity S.p.A. (CDP Equity), formerly known as Fondo Strategico Italiano, is Italy's sovereign wealth fund. Established in 2011, its mandate is to invest in strategic Italian companies to enhance their global competitiveness.

  • France: The Public Investment Bank (BPIfrance) serves as France's sovereign investment vehicle, supporting domestic businesses through direct investments and loans to foster innovation and growth.

  • Ireland: The Ireland Strategic Investment Fund (ISIF), established in 2014, focuses on commercial investments that support economic activity and employment in Ireland.

Additionally, discussions have been ongoing at the EU level regarding the creation of a European Sovereignty Fund (EUSF). The proposed EUSF aims to invest in Europe's future by supporting start-ups, scale-ups, and strategic projects to enhance the EU's economic resilience and technological sovereignty. However, as of now, the establishment of such a fund has faced challenges and has not been realized.

EU leaders talk the talk on defence. But where will they find the billions to pay for it? | Paul Taylor

Europe may have as little as three to five years to prepare for a potential Russian attack – it must get real about borrowing to protect peace, says Paul Taylor of the European Policy Centre

www.theguardian.com/commentisfree/2025/feb/05/eu-leaders-defence-europe-russia-attack-military?utm_source=chatgpt.com

An EU fund to help troops move quickly is too small and poorly managed, auditors say

Auditors say a European Union fund meant to help speed the deployment of troops and military equipment around the 27-nation bloc in times of conflict is too small and poorly managed to be effective.

apnews.com/article/eu-defense-ukraine-military-mobility-transport-7ca644d2f000b53c7f8b3f663ca7f1c5

Norway wealth fund banks record profit from big tech bets

The world’s largest sovereign fund made a return of $222 billion, or 13 per cent

www.thetimes.com/business-money/companies/article/norway-wealth-fund-makes-record-profit-thanks-to-tech-stocks-2x5npn5r0?utm_source=chatgpt.com®ion=global

NEXT WEEK: the difference between AI/HPC, traditional, and mining Data Centers

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