Topic: “The future of Money” Whitepaper (Read 345 times)

Hey good questions.  Well for number one, everyone should have an app similar to a bitcoin app on their smartphones, so all transactions can be done through that with no delay.  I can see people holding opendime type "hard cash" too.  This assumes everyone is connected.  Can be a problem.

Nothing prevents them from exploitive things, but proper competition. 

Homeless are fucked unfortunately.  I guess in this ideal world, there arent any homeless people since they are taken care before they become homeless.  Good points.

Questions on cashless society.

#1 How do people sell used cars, 2nd hand goods, have swap meets or yard sales without cash? If everyone needs a point of sale device to sell stuff in their yard, does this not make buying/selling less efficient in turn translates to a weaker economy and lower living standards?

#2 Once paper money is eliminated & banks have a monopoly over currency transactions under a cashless society, what is to prevent them from raising rates and fees & otherwise engaging in some of the exploitive things ISP's could do once net neutrality is gone and ISP's have more of a monopoly over internet service?

#3 What happens to the homeless or poor who can't afford a point of sale device or a smart phone? How do they buy/sell things if cash is outlawed?

I like you   No nothing to sell, just a concept.

Will there be an ICO? 

Yes.  A different one for each country.  Eventually we will need a global one.  (maybe bitcoin)

No this is an adaptation of the current system with blockchain technology, bitcoin is not replaceable.  It does not compete with bitcoin.  This is a no-cash world.  Many central banks in fact research this idea, such as the EU like above poster said and the central bank of Canada.

Current central bank "recommended structure" in economics is an independent institution.  Even the USA, the central bank is not obligated to disclose anything to the public, but they do to manufacture expectations.  They go before congress, yet they are not obligated to follow up on demands from special committees.  It is imperative that central banks stay independent, however UN-democratic that may seem at first.  Elected officials give the central bank its mission, example, Canada:  Inflation targeting.  The central bank therefore targets inflation, in the way it sees fit.  It is democratic, but it needs to be separate from executive powers, like the judicial power are.

Yeah I think it means more, this is how we go to a cashless society, from A to Z, while maintaining the current monetary growth system we have now.  I think this does not replace bitcoin in any way shape or form.  From what I understand, if me and you do a transaction on the "off chain", it still goes through banks.  Bitcoin still retains its magic.

Not so hard as you think, if you look at the process already started years ago. In fact, the increasingly obvious willingness to reverse the "cash" is directly linked to the inefficiency of this monetary policy... The European Commission published already a proposal for an EU initiative on restrictions on payments in cash in 2018.  http://ec.europa.eu/smart-regulation/roadmaps/docs/plan_2016_028_cash_restrictions_en.pdf

Good luck for your idea.
Good luck to convince a country to full adopt digital currency without traditional paper money, especially using your blockchain version.
For the first time, I thought you talked about bitcoin, but it was not. So, this blockchain could adopted by every county?

We now have the technology.  A blockchain based national cryptocurrency, directly created, controlled and operated by the central bank, which keeps its independence from elected officials will permit friction-less trading by all participants with transparent transactions.

Do you think a centralized digital currency could create an opportunity to increase the value of a 'fiat currency' and surpass bitcoin?
Maybe a country desperate looking a way to compete with bitcoin, and it turns out could achieved using your blockchain?
How a digital currency which controlled by central bank could keep its independence from elected officials or can not be manipulated?

Greetings from the vault.
















   It is inevitable that the global monetary system will change in the near future.  Global credit imbalances which led to unnaturally low interest rates in developed countries are the root cause of the 2008 financial crisis.  These have not abated and have increased in intensity since then.  The present international monetary system is unsustainable and must adapt to the information age in order to ensure prosperity and growth for all humankind.

   
   We now have the technology to create a new information era monetary system that can lead to a more prosperous world, increase personal freedoms, increase the importance of democratic government institutions and decrease opportunity inequality.  We can also eliminate or greatly reduce the impact of fiscal evasion and financial cheating in societies.

   Debt is the first concept that must be overhauled.  No one expects a nation state to repay its debt, but only to pay the interest on it - the cost of debt.  In fact, if the United States were to repay its debt, the implications on interest rates and global money flow would be tremendous.  It is radically different from debt a person would contract to buy an asset.  In that sense, debt, for the individual and the bank, is what we call money.  Contracting such debt is the root of money creation.  Government debt, on the other hand, accumulates in an exponential fashion with interest rates regulating the acceleration rate.  The rate of depreciation, or inflation rate, makes debt repayment possible for individuals and institutions.
   
   The current monetary system is complicated, obscure and is not well understood by the great majority of the population.  Control over money creation is indirect and inadequate, as the great recession has proved.  The cost of money cannot always be regulated in such a way that would promote economic growth, restrain asset bubble creation and limit inflation to a low but positive figure.  There is a way to do achieve the same goals more efficiently while at the same time having positive externalities for all society – such as radical cost savings and friction-less transactions.
   


   
   I propose a major fundamental change in monetary operations and origination, while at the same time keeping the existing institutions and ensuring continuity.  This change does not redistribute wealth, it only permits adequate monetary adaption to the new era of massive global growth and of global cooperation, the information age.
      
   We now have the technology.  A blockchain based national cryptocurrency, directly created, controlled and operated by the central bank, which keeps its independence from elected officials will permit friction-less trading by all participants with transparent transactions.  This centralized ledger will also permit real time monitoring of the economy as a whole through data mining and analysis.

   Money creation is done directly by the central bank.  It now directly control the price of money, the interest rate.  Banks now place reserves/assets directly at the central bank in exchange for funds and can still leverage themselves in order to create loans.  The leverage ratio, or potential rate of growth in the economy is also directly controlled by the independent central bank.

   The banks no longer create money through debt by the process of extending loans to institutions, individuals and governments.  They extend the same loans but acquire the loaning capital  by depositing reserves at the central bank, which then creates money through cryptocurrency operations.  The implications and consequences of this system are immediate.

   Not only does the central bank regain the ability to properly control the price and flow of money creation, society as a whole gains from enormous positive externalities.  There is no longer a need for complicated fiscal laws and reforms.  There is no longer a need for specialized lawyers and accountants.  Much of the “red tape” is eliminated, fraud and abuse are critically restrained and there is a major reduction in systemic risk to the system from large institutions.  Although banks are free to seek profit, they no longer have absolute control over the creation of debt.


   Although all major transactions between banks, governments and the central bank are recorded on the central Blockchain, individual transactions are not.  Personal and business operations are routed through the existing bank network and there is no major direct change in everyday life.  Since all money is now cryptocurrency (“on chain”), all secondary transactions not directly related to the central bank and bank operations are conducted “off chain”.  These “off chain” ledgers are operated by the banking sector much as operations are conducted today, and the individual or business sees no difference in day to day operations.
   

   One of the major implications of this change is the transition to a cash-less economy.  There is no more need to hold traditional paper money or coins, since it is now possible to secure money through cryptography.  All transactions and holdings can now be completely digital.  It is virtually impossible for such money to be copied or altered in any way, shape or form.  As the whole world becomes connected to a decentralized network, the internet, it is now possible to implement this digital solution to modern economies.  Cash economies are relics of a bygone era.  Welcome to the future.  The future of money.