< HOME  Saturday, January 07, 2006

Up to your eyeballs in BILLS? try using OPEN MONEY

I knew it was out there. Where there's a will, there's a way.
Open money is simply a medium of payment, a memory that something of value has been passed to another. One person's balance goes up, the other down. So for example suppose two people start with no money at all, so both accounts are at zero. One person then pays another CC10, their balances are now CC-10 and CC+10.

Here's where it's different from traditional money: there is no requirement that that money exists beforehand. It is possible to go into negative and positive without contacting a bank.

So that's it. It's really no more complicated than that. It's just mechanics from here on in, for example paying by phone, smartcard, paper notes, electronic point-of-sale (EPOS), or even SMS.

Main characteristics
  • Decentralized: no need for a centralized issuer like a bank, which means no threats from a centralizedpower.

  • Free: no interest is practiced because there is no issuer that makes a business of it. The only cost is the one of the infrastructure, which is a flat marginal cost, not an exponential one like in the interest.

  • Peer-to-peer: the total quantity of money in the community is determined in realtime by peer-to-peer exchange. There is no centralized authority that determines how much, where and when the quantity of money should be allocated.

  • Controlled by the communities that use it: the rules of circulation, credit limits, taxes, decision making processes, etc, are controlled by the community itself. Most of these settings can be configured via the software.

  • Sufficient: because based on mutual credit, i.e. there's never a lack of money since it is created upon the needs/wants streaming.

  • Holoptical: which means transparency between participants and access to global information about the system.

  • Adapted to all needs and all communities: whether communities are based on a local territory or a virtual one, each community exists because it has a circulating offer/demand within it. It can be time exchange, objects, services, knowledge... in a competitive or gift economy. Scarce mainstream currrencies only serve competitive markets. Open money serves whatever market since it is sufficient and can be applied in any context.

  • Connected to any "real" or "virtual" value: any community currency can be based on a "real" value (time, gold, kilowatt, kilo of potatoes, oil, distance...) or a "virtual" value (i.e. no relation to anything in the real world, it is just a unit accepted in the community).
So there you have it, folks. I've already registered (at the first link). I plan to research it further (and participate actively) after my exam, Monday.

I recommend that anyone who's FED up with the current monetary system do the same. This may be the solution to our problem.


At Saturday, January 07, 2006, Blogger yusuf chun said...

Wow! this is awesom! thanks.

At Sunday, January 08, 2006, Blogger qrswave said...

isn't it?

Please, let me know how you like it after you've had time to explore.

At Monday, January 09, 2006, Anonymous Anonymous said...

This sounds great! It seems quite similiar to something my husband thought up (and never acted on) that was kind of like an insider's temp agency. Exchanging goods for goods and services for services and goods for services, with no need for actual money. (His concept was totally based on man-hours.) I'll have to have him check it out. Thanks!

BTW, good luck on your exam!

At Saturday, January 21, 2006, Blogger Pepper said...

I love this idea, but I am not sure I understand it either correctly or completely. In either case is there somewhere I can read more detail about the mechanics of how it works.

For instance you bring up the "community". Is that the whole community or a select group who have decided to partake in it and thus become a community????

Where are controls? How does the exchange work?? Is it between two people back and forth or can one use their credits with someone else and they in turn go to the original person who started the exchange?? See what I mean.

I have been looking for something like this for my company since I am sick and tired of not being able to trust the damn banks. If I am so busy watching my back with them, how can I concentrate on growing my business. I realized how stressful that is to always be wondering if they didn't credit my deposit to the right account or had the right amount aqnd so I have to watch every single thing. I want out now. P

At Saturday, January 21, 2006, Blogger qrswave said...

Pepper, thanks for stopping by. Yes, anyone who wants to participates becomes part of the community.

I'm not sure how this particular system works, but it would not be much different than it is right now between you the bank and your vendors or suppliers. The bank is nothing but an accountant, a middleman between you - a middleman who charges interest. Open money just cuts him out.

Stephanie, I just visited VOID - fabulous work! I blog-rolled you!

At Sunday, January 22, 2006, Anonymous Anonymous said...

qrswave, we saw that you blogrolled VOID, and we blogrolled you right you back. Excellent site and issues you have here.



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