Changing Currency

OVERVIEW

Recent financial trends highlight a growing shift in how emerging technologies and businesses are being integrated into traditional financial systems. For the economy, these shifts mean faster transactions, increased financial inclusion, and new challenges in regulation and security. Inflation, fluctuating interest rates, and the demand for decentralized finance (DeFi) are further influencing how consumers and businesses handle money. As currency continues to evolve, brands that embrace innovation while ensuring security and transparency will be best positioned for long-term success in the digital economy.

1.?BITCOIN MIGHT BE AMERICA'S NEXT GREAT FRONTIER?

As bitcoin's value continues to rise, some in government, including President Donald Trump, are pushing to add it to national reserves. The Trump administration is more crypto-friendly than Biden’s, potentially leading to global acceptance of bitcoin as a currency. Two key proposals aim to increase bitcoin's role in U.S. policy. The Trump Plan suggests keeping the 198,000 bitcoins currently held by the U.S. Marshals Service, seeing it as a growing reserve similar to gold. The Lummis Plan, backed by Senator Cynthia Lummis, calls for the U.S. to buy one million bitcoins and hold them for 20 years or use them to reduce federal debt. While these plans could work if bitcoin's long-term viability holds, some skeptics, like Cato Institute economist George Selgin, doubt the government will ever sell bitcoin. Still, with countries like El Salvador embracing bitcoin and others considering it, the U.S. may eventually follow suit. Accepting Bitcoin isn’t just about payment—it’s about positioning. Brands that embrace crypto signal innovation, attract a global audience, and future-proof their business in an increasingly digital economy.

2.?OPEN AI?AIMES TO REMOVE THEIR NON-PROFIT RESTRICTIONS

OpenAI is shifting from a non-profit to a public benefit corporation, aiming to attract more investment for its AI advancements. The move, detailed in a recent blog post, allows the company to offer equity to investors, marking a departure from its original 2015 mission as a research-focused non-profit. OpenAI claims this transition will support its public welfare goals, including projects in healthcare, education, and science, though skepticism lingers. The company recently secured $6.6 billion in funding, with a valuation of $157 billion. Microsoft, holding a 49% stake, will likely play a pivotal role in this realignment, though details remain unclear. OpenAI follows rivals like Anthropic and xAI, which have already adopted the public benefit corporation model.

3.?COLLEGE STUDENTS CAN SELL FUTURE INCOME SHARES?

A startup called Prospinity connects college students in income-sharing “success pools” to redistribute wealth among ambitious peers. Founded by former Yale and University of Chicago students, Prospinity just raised $2M from Slow Ventures. Students in any field commit a portion of their income (typically for 10 years) to a shared pool, distributed annually. Prospinity takes a 5% fee, and members can set income thresholds to opt-out during low-earning years. Hundreds of Ivy League students are already participating, with plans to expand to schools like UC Berkeley. The idea hinges on the "power law," where a few big wins offset losses. Slow Ventures’ Kevin Colleran calls it “part insurance, part lottery ticket” for ambitious students hedging their bets on future success.

4.?LIMITED "X MONEY" IS EXPECTED TO LAUNCH THIS YEAR

X CEO Linda Yaccarino announced that X Money is among several launches planned in the coming months. The platform has secured payment transmitter licenses in 38 U.S. states but hasn’t yet obtained one in New York, a key market identified by Elon Musk for its payments rollout. Concerns about X’s ties to Saudi Arabia, stemming from investor Crown Prince Mohammed bin Salman, have complicated the process. Despite this, X plans to move forward, launching X Money in the approved states first. Expansion to other states remains uncertain, and international plans are not currently in development.

5.?THE SEC IS MAKING IT EASIER FOR BANKS TO HOLD CRYPTO

The SEC’s reversal on crypto custody rules signals a turning point for digital assets in traditional finance. By allowing Wall Street banks to hold crypto for clients, the move legitimizes digital currencies and accelerates their integration into mainstream banking. This shift isn’t just regulatory, it’s a sign that crypto is no longer a fringe asset but a key player in the evolving financial landscape. However, with this opportunity comes responsibility, as banks must navigate risk management and evolving oversight to ensure trust in the system. Brands and investors should take note: crypto is becoming an undeniable force in the future of finance.

6.?VISA WILL CATEGORIZE CREATORS AS SMALL BUSINESSES

Visa has strengthened its connection to the creator economy by officially recognizing creators as small businesses, offering them access to new financial tools. This move addresses a common challenge among creators who struggle to build relationships with traditional banks. A Visa study revealed that two-thirds of creators face delays in payments, which slows their business growth. The creator economy, expected to reach $500 billion by 2027, is driven by platforms like YouTube and TikTok. In 2022, YouTube contributed $35 billion to the U.S. GDP, supporting 390,000 jobs. With this new initiative, Visa is positioning itself as a key financial partner for creators navigating the mainstream.

TAKEAWAY

Financial trends are increasingly shaped by the rise of digital currencies, innovative business models, and new investment opportunities. Cryptocurrencies like Bitcoin are gaining traction in discussions about national reserves, while tech companies are shifting from non-profit to profit-driven models to attract investment. New platforms are emerging to support wealth distribution through income-sharing and other collaborative financial strategies. Digital payment systems are evolving to meet the needs of younger generations, with brands like Starbucks becoming key players in daily transactions. At the same time, financial institutions are adapting to the growing creator economy, offering tailored tools to support this expanding market. For brands, this transformation presents both opportunities and challenges. Those that adapt by accepting cryptocurrencies or integrating with digital payment platforms can attract younger, tech-forward consumers and expand their global reach. However, they must also navigate regulatory uncertainty, cybersecurity risks, and evolving consumer trust in these new financial systems.

Visual Design by Jonné Pratt, Research and Write Up by Catherine Marsh.