#rp23 keynote speaker Sebastian Gießmann: About the future of digital payment.

Sebastian Gießmann, born in 1976, is a researcher in cultural and media studies at the University of Siegen. In 2023, he is a visiting professor for cultural techniques and the history of knowledge at Humboldt University of Berlin. His research and teaching focuses, among other things, on the media and social theory of money. As a digital civil rights activist, he intervenes in ongoing social discussions – for example, on the topic of digital payment. He sees himself as a feminist and, as the father of two daughters, actively campaigns for the compatibility of family responsibilities and work in academia. In October 2017, he was awarded the “Future Research Award” of the University of Siegen for his research.

In 2016, he published “Die Verbundenheit der Dinge: Eine Kulturgeschichte der Netze und Netzwerke” (The Connectivity of Things: Network Cultures Since 1832, forthcoming with MIT Press in 2024). His next project is entitled “Das Kreditkarten-Buch: Geschichte und Theorie des digitalen Bezahlens” (The Credit Card Book: History and Theory of Digital Payments). He also publishes regularly on his blog netzeundnetzwerke.de.

At #rp23, we look forward to Sebastian's exciting input and inspiring discussions on the (digital) payment system of the future.

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Let's talk about #CASH. An interview with Sebastian Gießmann.

There is currently a lot to discuss around the topic of "CASH": The FTX scandal, the bankruptcy of Silicon Valley Bank, the takeover of Credit Suisse by UBS, the sudden drop in Deutsche Bank's share price, and rising inflation. How have you experienced the past months?

It is a dance on the volcano where the next big financial crisis seems possible at any time. Combined with the post-pandemic world, inflation, war and geopolitical conflicts, the great transformation of money seems almost incidental. Almost all money has become virtual data money, which in turn has made the quick run on the Silicon Valley Bank possible. The systemic instability of our financial system has increased yet again. But even Silicon Valley's house bank has underestimated the macroeconomic changes, and Big Tech is teetering between AI enthusiasm and mass layoffs.

What do you conclude from this for your field of research?

As a media historian, I'm interested in what hasn't changed, or only changed a little. In order to continue to organise our capitalist-dominated everyday life, we all have to earn money, spend it despite inflation, consume... Money remains the most important medium of cooperation for this. How we exchange and pay for values is a political matter: every transaction counts.

One of your theses is that when it comes to money, Germany lacks social imagination, a willingness to innovate or even a willingness to take risks. Why is that?

There is this German longing for stability. When innovation takes place, it is usually happening step by step. It took a pandemic to make contactless payment socially acceptable. At the moment, however, there are more crises overlapping than a society can handle at the same time. The question is why now – of all times – would be the time to change something about the form of money and payment transactions? If we don't do it at the European level, those who already have the technical expertise and economic power in the area of data money will do it.

How can this be changed, and what does it take?

I would say: dare more interventions and experiments! One great example is the MoneyLab network. This includes not only looking at the important, big institutions of money – but also trying out artistically, technically and socially what is possible with new money. Since the merge of Ethereum, we finally have an ecologically acceptable infrastructure for this. I think this part of a progressive Web3 is very important. We still need classic cash – but with an update, a new design and public appreciation.

In view of your keynote at re:publica 23: Can you tell us what your idea of a digital euro looks like?

We have to negotiate that politically and economically! I would like to see a lively European, civil society public. And the courage not to treat a digital central bank money as an unwelcome pipe dream. If Brazil can do this with Pix, why can't Europe? The crucial point is: we must not replace private tracking with state surveillance. The positive characteristics of classic cash must be reinvented infrastructurally: pseudonymous use in all life situations, a basic trust of the state in the everyday economic practices of its citizens... And we must politically keep the elephants in the room in check: Commercial banks, payment solution providers and big tech are not natural friends of digital central bank money. 

In the spirit of our motto "CASH" – what are your current reading/podcast or video recommendations?

First of all, for the right groove, a classic: the best song about the American credit card and the social consequences of digital payment is Albert Collins Master Charge, e.g. in this live recording from Carnegie Hall. For reading, I recommend Lana Swartz's New Money: How Money Became Social Media, Brett Scott's Cloudmoney and Tracers in the Dark: The Global Hunt for the Crimelords of Cryptocurrency by Andy Greenberg. For the non-Western perspective, articles on Fintech in Africa and a watchful look at the current development of Pix in Brazil. I'm also currently recording a netzpolitik podcast with Markus Beckedahl – including an excursion into the history of payment systems.