Talk:The financial system

The introduction and use of currency raises some critical issues. I bring this up not to distract from the project, but to develop in tandem with the project to keep it aligned to her values. I am not an SME in this area other than to be a consumer and investor. However, I have invested (pun intended) significant thought into currency and my thoughts are now able to be played out in the public arena for synthesis.

Identity

• The traditional currency model is based on Trust in a Central Authority. What makes currency in the project different?

The system must be secure and trusted for people to use it. No person can have access to private accounts.

• What do we call the "currency" to differentiate it from "dirty money." (Why/How to define dirty money?)

There's no need to have a single global name for it, people can change names of any concepts in the network including that for currency.

• Is it possible to have currency without a bank?

What are you defining a bank as? there's no physical location of currency in the network, but there must be a trusted secure way of storing account balances. The nodal organisation which handles that could be called a bank, but again that name is up to individual preference.

• "Who" issues currency? / "Who" loads the initial currency value? It seems to me that there would be a finite set of currency issued (like stock) that could split, but no more could be created? Or, is this an infinite resource (back to Who creates it?)

Currency is not money, it is simply a representation of the value of already existing resource. The total amount of currency expands or contracts as the total amount of resource expands or contracts.

Potential problems

• Is it possible to have anonymous transactions in the nodal context? Or will identity always be attached?

Any context can have security, and transactions may occur inside any context.

• what about non-associated avatars?

Avatars may be human or nodal, and may be anonymous or not, all can make transactions if both parties are happy to deal with each other etc

• Since currency could/would have "stigma" attached to it (the history of every transaction that will be inherent), it would measure public (and private?) behavior/economics, as well as serve as a public record of morality.

• Since currency will follow the nodal model, it would seem that certain "dollars" could/would attain intrinsic value. For example, "dollars" that are used to purchase goods or services that are "rare" or had historical significance would have greater value than those that were more "common." These "dollars" could be sold or traded in a way that duplicates interest, or "hoarded" (removed from circulation) in a way that would reduce supply and increase demand for circulating currency.

All currency is the same, its just a number in an account and cannot undergo change unless there is a change in the resource of the account holder.

• Does the currency value fluctuate (inflation/deflation)? if the currency issued is finite/fixed, then it seems that "inflation/deflation" would be synchronized 1:1 with supply/demand.

There is no inflation/deflation, but the value of resources change throughout places and times.

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• Issues with a CA if we have one.

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• Open or closed (Exchange Rates)?

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