Item Banc a first of its kind Global Parity Valuation Engine brings Information Currency
“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants — but debt is the money of slaves.” ― Norm Franz
A first of its kind Global Parity Valuation Engine known as Item Banc will turn the barter of necessities into a superior form of exchange, for everyone, by backing a digital currency with items that every human needs and providing the market information on its trades. This information is utilized to value products, goods and services that are used in exchange for BHN. BHN (basic human needs) are categorized by Item Banc as food, shelter, clothing, medical and hygienic supplies, and paper goods — like toilet paper.
Item Banc is scale-able, will spread and has great humanitarian attributes by deriving relative valuations and informatively delivering BHN to the market.
Item Banc operates like a bank for items that people need; BHN- Basic Human Need Products. Item Banc represents a deposit of BHN items in the bank using smart contracts on the blockchain. The producers or traders of these items deposit them physically at Item Banc’s BHN retail warehouse and get a receipt (or note) for that deposit in the form of a digital currency. This tokenized “note” or “credit” can be redeemed again at the bank (the BHN retail warehouse) or can also be transferred peer2peer to another party to redeem or transfer again. Producers will be incentivized to produce more by having the option to trade their production for BHN, or Item Banc’s virtual currency (tokenized “note”) which then can then be traded.
By recording and publishing BHN transactions the Item Banc Engine will provide the data to create a basket, an index, a measure that examines the weighted average of prices of basic human needs. It is calculated by taking price changes for each item in the predetermined basket of the five categories (food, shelter, medical, clothes, and paper goods) of BHN and averaging them. Analyzing the transactions of a basket of BHN will provide an accurate valuation of currencies used in the procurement of them.
By making the value of BHN items known with comparisons and publication of their transactions they are no longer differentiated products. The Item Banc Engine categorizes basic human need products into units that are the same. This uniformity permits BHN to become logically traded. BHN’s known valuations allow them to be bought and sold freely. As commodities BHN will be traded on a futures markets, in bulk on an exchange or spot market.
Purchasing power parity (PPP) provides a straightforward calculation that compares the data of each country so adjustments can be made in the exchange rates of two currencies to make them at par with the purchasing power of each other. Item Banc’s Global Parity Valuation Engine will allow for the expenditure of BHN items to be the same in different currencies when accounted for their exchange rate.
If a pair of work boots costs $50 USD or 40,000 Rwandan Francs then the exchange rate should be $1 USD = 800 Rwandan Francs. Using this exchange rate if it cost $50 USD and 60,000 Rwandan Francs to purchase work-boots an observer of this data could detect a misnomer of valuation. The publication of this provides the market with the information to identify and correct the miss-valuation.
The market would respond by importing additional work boots to the Rwandan marketplace to profit from the higher sale price; which will also work to alleviate it. Imagine the use of the Item Banc Engine in the instance of a disaster such as a war, pandemic or earthquake. As BHN is traded its data is entered into the Item Banc Engine and published in real time. Commodity prices respond quickly to increases in supply and demand. The market will be readily informed what products the community needs. Having the data accessible in real time will allow the market to expeditiously react and put the disparities back into balance.
Since commodities futures price is determined primarily by the supply and demand bringing more to the Rwandan market would assist in correcting the miss-valuation. Producers of work-boots who have access to the information provided by Item Banc’s Global Parity Valuation Engine can recognize the opportunity and offer them directly to the Rwandan market. If the misnomer in exchange rates were true on a plethora of BHN items one would be informed that it is faulty. It might be time to sell Rwandan Francs before the exchange rate changes to reflect purchasing power parity. If the exchange were $1 USD = 800 Rwandan Francs and it cost $50 USD or 25,000 Rwandan Francs to purchase work-boots and the same disparity in the exchange rate were true on many varied BHN transactions then it might be time to exchange out of the USD.
The commoditization of BHN allows these items to be traded in bulk as commodities on exchanges and for a futures market to be spawned for them. Item Banc and it’s BHNs will use blockchain as a Financial Services Marketplace to provide an immutable, transparent, cost effective medium of exchange where producers can trade their products or tokenized credits, Item Banc’s digital currency, on a shared distributed ledger, informatively educated with data from a first of its kind Global Parity Valuation Engine. The market will have confidence that standardized prices for BHN commodities are accurately established. Producers can use the Item Banc Engine’s data to determine where the most profitable markets are to export their products, to properly hedge their production and inventories. The financial markets will have a better way to value currencies.
The marketplace will develop a multitude of ways to utilize Item Banc Engine’s data and valuations.
Item Banc believes that every community should have a viable currency. Backing a virtual currency with basic human need products allows communities to be valued by their production of them. With the cryptographic trade of a currency backed by basic human needs products and the information on this commerce tokenized, creating an information digital asset, that when used to provide relative valuations can move us closer to a fair market no longer caged by gold or silver.
Because of the transparency of information provided by BHN tokenized credits (digital currency) they will prove to be an accurate trusted common measure of exchange for everyone.
Item Banc will publish relative valuation information comparisons of transactions of Basic Human Need products from around the world so that exchange rates can be based on more relevant and fair information. The Global Parity Valuation Engine’s information will show misnomers or correct valuations. The tokenization of this information’s value creates an “Information Currency” that provides the best relative valuations.
Welcome to The Fair Market
Look for the upcoming book The Language of Value: Information Currency by Virginia Robertson
For in-depth knowledge visit www.itembanc.nl
