EquaCoin: a democratic cryptocurrency
All of us talk about money but few really understand what money is and why there is no historical experience of a democratic coin. EquaCoin is the first cryptocoin managed by a decentralized blockchain able to finance projects with no loan interest, that can be created on demand with a democratic consent.
(Second article of a series)
You can talk with a Nobel Laureate in physic about money and after few minutes he will be bored and experiencing a lack of attention. It seems that God deactivated some of our genes to avoid we can really understand what the money is and why the money ownership should be of its users (all of us).
In our daily experience we interact with banknotes created by Central Banks, Bank-Money created by commercial banks [1] and only since few years we are experiencing Virtual Money based on some genial complex algorithm able to create an expensive digital scarcity, like Bitcoin and Ethereum.
We know that Central banks print banknotes and many still believe that those banknotes can be converted in gold, but it is false since 1971 Nixon shock [2]. If you go to Federal reserve or to the European Central Bank to change your banknotes, in the best case, you will receive exactly the same banknotes. That is due to the fact that FED or ECB have nothing to give you in change of their printed paper. So what is money ?
Well, purists will argue that, in addition to above 3 functions, money must be used to regulate future transactions too, but it simply comes from the above basic 3 functions.
Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency, broadly defined, by exercise of the following powers: Legal tender — the exclusive authority to designate the legal tender forms of payment.
Taking in mind that concept: SOVEREIGNTY in a modern democracy means Popular Sovereignty:
Popular sovereignty, or the sovereignty of the people’s rule, is the principle that the authority of a state and its government is created and sustained by the consent of its people, through their elected representatives (Rule by the People), who are the source of all political power.
A Central Bank must care to maintain stable its currency respect others foreign currencies to avoid that its money cannot be used as Unit of Account. For that reason Bitcoin cannot be considered as money, cause its value, at moment, changes dramatically during the time.
Most efforts of a Central Bank are focused on the Store of Value function. However it seems to be an illusion cause the normal economic cycle the quantity of money released by Central Banks must vary and a bit of inflation can be accepted by design to consent the economy grow.
As known Central Banks are controlled by governments that administrate them in name of the people but, well, you know, it is not completely true — In Europe, the ECB is an autonomous private organization indirectly controlled by commercial banks and in the USA, the FED, more or less is the same.
So if the people do not have direct or indirect control on money creation who owns that money?
Commercial banks have the whole control of money creation, directly when they create their Bank-Money by thin air and indirectly controlling central banks via a Chinese boxes mechanism.
By the way, who controls Commercial Banks?
Do not ask me how it was possible to steal the money creation off the states but, believe me, it was so [3] —
So we are living (it should be clear to everyone) in a world where the Popular Sovereignty has been USURPED by commercial banks. How we can fix the problem. There are, of course, many ways but the very first step is to call things with their own name, we must recover the usurped Sovereignty implementing a new economic space introducing a new worldwide coin created using democratic consent -
The new economic space has been called EquaZone and the new Democratic coin: EquaCoin.
Citations and References:
[1] A lost century in economics — Three theories of banking and the conclusive evidence — Richard A. Werner — Centre for Banking, Finance and Sustainable Development, Southampton Business School, University of Southampton, United Kingdom- International Review of Financial Analysis (2015)
[2] Nixon and the End of the Bretton Woods System, 1971–1973 — Office of the Historian, Bureau of Public Affairs — United States Department of State
[3] How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking — Richard A. Werner — Centre for Banking, Finance and Sustainable Development, Southampton Business School, University of Southampton, United Kingdom — International Review of Financial Analysis (2014).
Further online resources:
EquaCoin Offical web site — http://www.equacoin.com/
My twitter account — https://twitter.com/GillChamp
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