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== (things we can control initially)

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

• What do we call the "currency" to differentiate it from "dirty money." (Why/How to define dirty money?)
  • Dollar
  • Linden
  • New Term? (i propose the term "stigma"-- see below)

• Is it possible to have currency without a bank?

• "Who" issues currency?

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?)

• "Who" loads the initial currency value?

==Potential/Problems== (things we can anticipate)

• Is it possible to have anonymous transactions in the nodal context? Or will identity always be attached?
  • what about non-associated avatars?

• Since currency could/would have "stigma" attached to it (the history of every transaction that will be inherent) it could be a public way to measure 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 use 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.

• 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.

• • Advantages:
  • Disadvantages:

• Issues with a CA if we have one.

• • Advantages:
  • Disadvantages:

• Open or closed (Exchange Rates)?

• • Advantages:
  • Disadvantages: