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+--- Thread: A Local Currency? (/showthread.php?tid=4856)
RE: A Local Currency? - JWFITZ - 12-29-2008
The cyclos software supports the use of cellphones as ATMs that access a local secure server. It's every bit as advanced and secure as any other means of exchange is, for whatever that is worth. Some local currencies carry blanket liability insurance to cover costs of failure or loss, and it's a very viable and sensible option to engender a lot of confidence that can't be had in other mediums of exchange.
It's worth looking at what others have done successfully. One will see the bugs are worked out and these are workable systems with significant capitalization. Puna is an ideal area for such things, in culture, in local production, and in location.
RE: A Local Currency? - Jon - 12-29-2008
who runs the account system?
what are the penalties for fraud?
how is this system protected from hackers?
Trust me, I am in the computer banking business, and if you really want to do this, you better coin some money, silver or gold, otherwise the ones that make out the best on the system will be the ones running it.
They who would give up an essential liberty for temporary security, deserve neither liberty or security
Benjamin Franklin
RE: A Local Currency? - Hotzcatz - 12-29-2008
So if there is a secure source of transferable value then all we need is to get the folks together who are willing to use these credits to swap stuff around. If the system was used alongside U.S. currency then it would become a viable alternate. Just like when you have a choice between cash, check or credit card, there would then be another local option.
Kurt Wilson
RE: A Local Currency? - Jon - 12-29-2008
If you allow access to this "new Currency" by people outside the coop, then its value will fluctuate based on the other currency's.
The intrinsic value would need to be connected to something that only the coop can provide, membership would be the easiest.
Rules such as "I am going to sell tomatoes in the coop and only in the coop" would need to be setup to keep other currency's from pulling the value of the "new Currency" down.
They who would give up an essential liberty for temporary security, deserve neither liberty or security
Benjamin Franklin
RE: A Local Currency? - JWFITZ - 12-29-2008
Exactly--the difference is:
This medium stays in the community and increases community wealth. If I build a chicken coop for "Punabucks" Puna is richer by the cost of a chicken coop.
Is wholly transparent.
Has no profit motive for the system stewards.
Provides an emergency alternative to the "standard" currency in case of inflation or debasement.
Usage and acceptance demonstrates an incontestable attitude of community good will and trust.
Can provide funding for projects that would not be fundable through conventional means--such as bond issuance for small business loans. This is a very important aspect that has been very successful.
RE: A Local Currency? - Jon - 12-29-2008
"Has no profit motive for the system stewards."
That will never work... the system stewards, as in everything else are out for a profit of some sort. The comment "This mediums stays in the community and increases community wealth" itself proves that point.
Then you have the problem of changing coop money into Dollars so people can pay their bills, without really going outside the coop system. This could get real touchy as real values fluctuate based on things outside the coop.
or do you expect banks to just forget all those loans and start over?
They who would give up an essential liberty for temporary security, deserve neither liberty or security
Benjamin Franklin
RE: A Local Currency? - JWFITZ - 12-29-2008
Some people are capable of profiting by knowing they've done something good for the community. Hard as that might be to fathom, some people don't require a cash payout to prosper.
RE: A Local Currency? - Jon - 12-29-2008
LOL
and you may find one of two that will be that way, but over time others will have to take over or help run the system, and how will they be policed?
My job is to find holes/flaws in systems and anywhere that a human is part of the system, there is a huge hole/flaw....
Have you had any dealing with the Hawaii Shores Home Owners Association? They are a great example of how good things can be messed up.
They who would give up an essential liberty for temporary security, deserve neither liberty or security
Benjamin Franklin
RE: A Local Currency? - JWFITZ - 12-29-2008
I expect if you were discovered to be the local version of Bernie Madoff things wouldn't be very well for you.
There are risks with any system. Jon has made a lot of assertions. How well do those assertions fare against the current status quo and state of the dollar and our Fractional Reserve Lending System?
I'd suggest that those who aren't interested in participating ought to start "not participating." I'm interested in advocating something I expect would be very constructive for the local community on many levels. I'm not interested in replying to a whole host of random questions that aren't informed nor even remotely pertinent to the conversation.
RE: A Local Currency? - Jon - 12-29-2008
LOL...
So, in other words if you don't want in, your option or knowledge is not needed or wanted.
Understood.
They who would give up an essential liberty for temporary security, deserve neither liberty or security
Benjamin Franklin