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Reinventing Money. A Vision of A Digital Currency

 

Money is a funny thing. Ever since its value stopped being linked to gold, the only way to create money is either as credit on one side and debt on the other, or through printing it, or through some sort of digital process which conjures it into creation, like Bitcoin. Let’s look at reiinventing money, based on ideal principles:

 

Index linked to established stable currency.
Prevents volatility, speculation, and makes it ‘real’.

 

Uses Blockchain
Creates an immutable record. Traceability. Fraud prevention.
Provenance of origin.

 

Carries data
A unit of value, and also a record of information.

 

Exchangeable:
For goods, services, also for the currency it is index linked to. It must be able to be ‘cashed out’.

 

Simple:
Simple to understand, simple to generate, simple to transfer.

That’s the quest: How to generate a true currency unit that has real value, that anyone can generate for themselves, given the required effort and process, and that can be spent, saved, or exchanged for £ pound sterling. Literally, how to Make Money.

Fint01-ReinventingMoney

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Underwriting The value: The crux of the whole thing.

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It means an equal value of £pounds sterling being held on deposit, which will be exchanged for CyberSterling on a 1:1 ratio if and when the CyberSterling units are cashed out / exchanged for £pounds.

In our supply line, the Publisher performs the service, but they are not the actual underwriters of the value. In our model, commercial companies are. Let’s use an example: Company XYZ is given the opportunity to underwrite a value of Cyber Sterling, £100,000 worth.

This requires them to have £100,000 in a deposit account with The Exchange. This £100,000 is drawn down every time Cyber Sterling is exchanged for Pounds Sterling.

Why would Company XYZ do this? Where is the value for them?

In this model, Advertising, Branding, and Data.  When the notes are in the Generators wallet, they have the Branding of the Underwriter visible. They are recognisably underwritten by Company XYZ. In effect, the commercial branding of digital currency.

If each ‘Note ‘ is worth £5, the £100,000 equates to 20,000 adverts in peoples CyberSterling wallets. When the NOTES are split, from purchases, or from partial transfers, they split into XYZ branded COINS, so the advertising increases when the currency is transacted. It’s an Ad Tech opportunity. And with Ad Tech comes Big Data, because the transaction history is stored and made available.

As a model, it encompasses ‘good tech’ + fintech + Adtech + blockchain (optional) + Big Data and covers the stages of generating, validating, valuing, and transacting the currency. Easy.

[author title=”Bird Lovegod” image=”http://thefintechtimes.com/wp-content/uploads/2015/12/JS-9721.jpg”][/author]

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