I'm coming to the conclusion that the financial system as it stands can only evolve in two directions: 1) into a myth-based financial system or 2) A social credit system.

The logic is that conventional banking can't survive in a zero growth world or a steady state.

This is because the only way to entice capital sacrifice for investment in the here and now is the promise of higher returns, which are not viable in a zero-sum state.

Returns are the carrot that entice social cohesion, and socially constructive sacrifice. I will share my surplus with others cause I will get more out of it in the long run etc. This drives cooperation.

But equally the system needs a penalty system, which in the current system is generated via exclusion/deplatforming from the financial system (and/or fines for bad behaviour, credit blacklisting)

An entirely inclusive financial system with no growth prospects has to rely on other means to maintain system cooperation. Social credit is the obvious pathway.

But a social credit system is likely to feel coercive and intrusive. It will inevitably lead to the creation of a disgraced underclass that has to buy back social credit to regain access.

The only alternative (i think) is a myth-based system, where behaviour is regulated not via social credit/penalty, but voluntary submission to a higher cause/belief. (God, Mars Missions, Interplantery existence).