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Presentation to HullCoin notes

Reality check: Functions of money

Store of Value for rich people
Medium of exchange for traders/producers
measure of value etc.
No one monetary design is optimal for all functions.

A typology of money

Very little consensus on this. Important for the integrity and long term stability of the project. For all currencies note that the issuer has a tremendous benefit by being able to thrust the money into circulation and usually to control the quantity. Recession means not enough money circulating in the economy.
Commodity money / Barter Fully backed. What is backing? Why Gold? What if you use wheat?
Quantity limited by commodity. Inelastic. Money costs 100% of its value. Stable value relative to backing. Good if you already own backing e.g. Council housing? Good store of value & measure of value but less good medium of exchange because it can be scarce or hoarded. Myth of Barter.
Fiat money
Quantity unlimited. But have to have a monetary policy. Many failed fiat currencies because with no redeemability no-one accepts it. BUT government can create a built in demand - taxes! Good medium of exchange but can be liable to inflation if over-issued.
Note national currencies now are NOT fiat, except maybe the 3% paper issuance.
Examples Greenbacks, Bradbury Pounds.
Credit money
Credit means a promise to pay something of value LATER. Not a store of value. Depends on trust. Good medium of exchange. Have to be sure not too much is issued. In practice not all credit is redeemed. Here's Bernard Lietaer
  • Self issued credit & multiple currencies. See Paul Grigon's plan centralised commercial self-issued credit system Digital Coin
  • Mutual Credit is very interesting because it is egalitarian. IOU network. LETS & timebanks and B2B systems. for good introductions to the mechanism see Vid 1 & Vid 2
  • Commercial B2B systems have failed.
The movie The Money Fix is all about mutual credit systems.

Questions on typology of money

A word on legal tender laws and how to get around them.
As a political philosopher I tremble at the recent DWP ruling for timebanking.
See Agorism

Questions on legal issues

Choosing a model

Different currencies have different objectives which are not necessarily complementary.
Bristol Pound model is best for localising supply chains. But is Guild of Independent Currencies clear about it limitations?
Boya Boya acknowledges carbon emission reductions but who accepts it?
Timebanking is used to encourage and reward volunteering. (is it a fiat or a mutual credit)
LETS & B2B give users an accounting system so they can increase economic activity through exchange.
Lietaer's Civics model designed for cities like HUll.

Discussion on models and Hullcoin objectives

Practical: Accounting technologies & user experience

Most of this stuff is independent from theory but very important for making a currency useful. Cash paper is for commodity / fiat money no negative balances except see Bangla Pesa. Cheap @15p per paper.
Phone apps / cards POS systems. Qoin are experts at this also some commercial companies.
I make open source systems but not much beyond web sites yet.
Blockchains PoW problematic for small projects. Any serious mining rig could destroy your blockchain consensus.
Other blockchains solutions need some development to integrate with payment systems. Bit too soon really.
Curituba trash/bus tickets.
NB What payment options does Ven offer?

Questions on payment technologies

Conclusion

I'm not here in any formal capacity but how can I support/encourage the Hullcoin project?

What have we learned today?

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