The traditional money system and limits to scale

Open Money can help build functionally that are currently not possible

The traditional money system and limits to scale

One of the biggest challenges of the existing financial system is that it doesn’t scale well — both vertically and horizontally.

The vertical scaling problem: value capture

You’ve heard the saying, “It’s easier to make money if you have money.” This is a fundamental truth embedded in the structure of the current financial system. The system rewards those who already have capital, creating a self-reinforcing cycle.

Access comes no through differentiated investment opportunities but also through privileged access to financial instruments, lending advantages, and exclusive products and services.

Take accredited investor rules, for example. These regulations are meant to protect individuals from high-risk investments, but in practice, they reinforce economic stratification. Only those with significant assets or income can access early-stage investment opportunities — like venture capital deals or hedge funds — leaving the majority of people locked out of high-growth wealth-building avenues.

The result?

A system that scales in favor of those already inside it.

The horizontal scaling problem: borders and inefficiencies

Money today remains largely tied to geographically-bound political entities — primarily nations. Unlike digital information, which moves freely and instantly, money is encumbered by outdated financial plumbing. Slow settlement times, excessive fees, and jurisdictional friction create inefficiencies that limit global commerce and financial inclusion.

This structure made sense in an analog world, where currency was tied to sovereign states for stability and control. But in a software-driven, interconnected world, these borders serve more as barriers than safeguards. The constraints of national currencies impose unnecessary costs, complicating everything from remittances to global trade.

And as nations themselves struggle to keep pace with digital transformation, their role in shaping financial systems is shifting. The rigidity of state-backed money is increasingly at odds with the fluidity of digital economies. The more the internet reshapes how we work, collaborate, and exchange value, the more evident it becomes that money should not be bound by borders.

Where the inefficiencies show up: the edges of the network

The limitations of today’s money systems are most visible at the periphery — where the infrastructure struggles to support new use cases. Two clear examples illustrate this:

  1. Micro-transactions – Current financial systems are not well-equipped to handle small-scale transactions efficiently. High processing fees and long settlement times make micropayments impractical. This has historically limited innovations like machine-to-machine payments, AI-driven transactions, and monetization models based on micro-contributions rather than subscriptions or advertising.
  2. Hyper-local economies – Local currencies and community-driven economic models remain difficult to implement due to centralized financial structures, regulatory overhead, and the inefficiencies of treasury management. While such systems could empower communities to create and retain value, the traditional banking system isn’t designed to support them effectively.

On the other end of the spectrum, the global movement of money remains cumbersome. For everyday users, sending value across borders is expensive and slow. And despite its historical role as a universal store of value, gold or other precious metals aren't a practical medium of exchange in a digital world.

A truly apolitical, global reserve currency — something digital, borderless, and universally accessible — remains elusive.

The shift to Open Money

Until recently, it was easy to dismiss these scaling limitations as inherent constraints of finance. Micropayments weren’t feasible because money wasn’t divisible enough or transactions were too slow and costly to process. Hyper-local economies were impractical due to regulatory complexities and infrastructure expenses.

But the rise of Open Money is changing that. Distributed, interoperable, and accessible financial systems are making new models of value creation and exchange possible. Programmable money — designed for global, digital economies— removes many of the friction points that have long constrained financial innovation...

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