ARCC White Paper Introduction
Much has been said about the evolution of money as a means of exchange, but while money has always become a constant for the last thousand years, the economic structure around it has not been. The growing gap of wealth disparity and concentration of wealth is fundamentally inherent in the capital acquisition structure of capitalism. The aftermath of the 2008 financial crisis saw the unbridled greed of a few dictate the economics of the rest. But in developing countries, the injustices, lack of transparency and inequality is a norm of life.
Yet, every nation that has engaged in industrialization and capitalism has also gone through its history and development of exploitation and inequality. The mechanism of taxes and regulation were brought about those in power to create Welfare Capitalism that was able to strike a balance between those who participated in the economic system via labor while allowing a fair way to take wages and use it as capital. This is perhaps the entire economic basis for the American Dream, in that it appears to be achievable.
While the debate in developed nations maybe more focused on individuals being able to maintain their wealth and freedom as well as providing another alternative to a game that is rigged by Wall Street, the needs of many emerging markets are locked into the basic struggle to get out of poverty and exploitation. While it is a straightforward process to list off what emerging markets require, education, infrastructure, transparent socio-economic institutions, and clean politics; it is an entirely different proposition to make progress in these nations.
The innovation of cryptocurrencies most profound impact will be in emerging markets. In the year 2018, is there any excuse why there should be poverty, lack of education and lack of social mobility? From a technological or economic stand point, there is none, but from a political socio-economic position there are many reasons why the economic elite of emerging markets want to maintain the status quo. Fundamentally, there is no incentive for the economic elite to ever change the status quo and mass markets are placated with the ability to work abroad or lose themselves in consumerism with their $5 lattes on a $600 a month wage. It is a very deceiving system where it is easy put the blame on individuals who do not save or do not take on micro loans to further engage the existing system. But without health and educational support, there are always major costs that wipe out any long term saving plans and while basic services seem cheap numerically, on a relative cost per service level they can be considered some of the highest fees in the world.
The decentralized nature of cryptocurrencies has the ability to put capital directly into the hands of the individuals who can, for the first time, start to plan for the future, realize a level of security which exists outside of their current economic structures of exploitation. The International Blockchain Monetary Reserve, IBMR, is proposing a new economic development model which makes allows for the direct participation of individuals into a new form of capital acquisition through the model of ‘Social Proof of Work’. Through the issuance of ARCC, the Asia Reserve Currency Coin, ARCC, emerging markets in South East Asia will have the ability to earn this ‘crypto reserve currency’ through their active participation in education tied to socio-economic voting and surveys.
The value of validated socio-economic voting is that it can expose systemic corruption by creating results which are confirmed and validated by a potentially critical mass of actual persons rather than simply a sample size estimate. Ultimately, the biggest business barrier to development in emerging markets is the lack of investment confidence due to corrupt business practices and insufficient supporting infrastructure. These issues are extremely hard to expose due to the systemic nature of the corruption as well as population that is simply trying to survive and are not incentivized to act as a group. Only movements that promote radical transparency can exposure this type of corrupt and abuse. Much like the #MeToo movement which has exposed decades long abuse by Hollywood and men in power using their position for sexual abuse, people need to be encouraged, motivated and ultimately empowered to have the courage to expose what everyone knows but also have tried to ignore and suppress. This only occurs when there can be confirmation by others as a collective as well as a confirmed transparent account of the corruption. More than just a survey of opinions, Social Proof of Work can provide a real time and detailed account of the true socio-economic status contrary to systematic attempts to spin the truth. This in turn will add to the competitiveness, productivity and optimism for individuals as well as validated socio-economic trends that can be used to target areas for development.
The ARCC will derive its value through the same mechanics as Bitcoin does through the participation of miner and the use of a resource to mine the coins. But in this case, instead of electricity and hash functions done through hardware, it is the individual whose participation on the IBMR Economic Development Platform (IBMR EDP) who devote their time and real world experiences to create real macro socio-economic data (through socio-economic voting/surveys) that reflect the real living standards and needs of their nation. This project is not political move to change the centralized institutions of their countries for the better, rather this is about create a decentralized economic system which empowers the individual by providing options that did not exist before.
Yet, ‘Social Proof of Work’ is an insufficient incentive if the ARCC is unable to create real structural value as Bitcoin’s value can also be linked to the investment and use of infrastructure to function (hardware, internet, electricity, chip design etc). To that end, IBMR also proposes to create two underlying pillars of value to support the framework of the ARCC: (i) regional infrastructure and industrial investments and (ii) a standing monetary reserve. Ultimately, this project is one of global economic development using the ARCC and not for simply the creation of a new currency. As such, the ARCC and the Social Proof of Work needs supporting structures to progress this agenda of economic development as a whole.