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Thought experiment: Equicoin & Deserved dollars

The current wave of cryptocurrencies, starting with bitcoin, are designed, monetarily speaking, within a very limited paradigm. They generally have a fixed quantity, and a fixed rate of issuance determined at the start, they find their value on the free market based on pure supply and demand, they have no possibility of redemption and no backing of any sort. Participation is open to anyone who can install a wallet. Furthermore the innovation happening is not monetary innovation, but more concerns security, and attempts to address the problem of how to issue the currency fairly, whatever that means.

This proposal is attempt to widen those horizons.

First I want to note that it would be philosophically and politically abhorrent to have one and only one global currency. We probably need local and global currencies, and scarce currencies for goods and abundant currencies for services. This idea is for a 'sufficient' currency which could be global in scope. It is inspired by the current wave of cryptocurrency innovation, but as is often the case with money, the technology distracts attention easily from the power relationship between issuers, lenders and borrowers.

Equicoin means the same number of coins is issued to each member, say 10,000.

The unit of value is the dollar, or to be exact, the 'deserved' dollar. That means you give people as many dollars as you think they deserve, in tips or payments. The value is therefore fixed and there is nothing on which to speculate.

The quantity would adjust automatically to the global population.

Anyone could get a wallet but to access the coin to which you are entitled, you would have to give your passport number, (unless there is some better form of id). This data would be needed only to reduce identity fraud. This identity check would be the tricky part, especially in less developed countries.

The coin could be be bought and sold on the open market, but demand would be low, since everyone should have enough! But deserved dollars might occasionally be converted to real dollars! the greater hope is that gradually deserved dollars would become acceptable in payment where US dollars weren't abundant.

The catch is in allocating the credit to any person who can identify themselves. This would be a bit like we have to identify ourselves now, with a photo of me holding my passport, in order to buy bitcoin from an exchange.

Perhaps 'the people' wouldn't understand it?
Perhaps ideas which require costly identity checks but don't have a revenue stream should never get off the ground?
Good idea? Stupid idea? Tell me below!

Comments

I think the unit of value of a global currency has to be global too. In a western city, in a small village in central africa, or in the north pole. Dollar is associated to imperialism and speculation. What about the hour of work? This could be an universal value. And if we are equal, our work has to be equallly paied.

Had initially thought that this idea was naive, but thinking on it further, and seeing the start up of new "countrycoins"such as auroracoin and scotcoin makes me think that this idea has merit! It may be better to issue a smaller number of coins, so that they end up trading (in the blackmarket or legitimate exchange) at a price range that people are comfortable with. Seeing a coin trade at a fraction of a cent doesn't instill a sense of psychological confidence. Thanks for continuing to push the envelope.

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