How do open currencies solve what’s wrong with money?

In by Eric Harris-Braun

Open currencies allow for sufficient, non-scarcity based systems for tradable wealth :

  • If the currency accumulates in one place (which commonly happens because of an intense economic activity), value doesn’t need to leave the rest of the social ecosystem. There will simply be issuance of more currency where lacking, or consumption of it where there is too much. This principle can be understood thru an analogy of air or water: when an emptiness happens, new quantities are sucked up. When an excess happens, the surplus is evacuated.
  • Regulation of the monetary mass has always been a puzzle for countries and economists. It was necessary to build centralized organizations to analyze the market and make decisions for everyone, provoking the mistakes and abuse we know. In the age of Internet, regulation mechanisms of the monetary mass can become distributed at every level of the system. If we can build holoptical structures there is no more need for centralized authority.¬†Every player becomes a regulator of the global monetary mass.
  • Sufficiency implies the monetary mass of the community is always proportional, and an expression of the capacity to exchange and produce. There should never be too much or not enough.

This rule also applies to people: if you have wealth to create or exchange, then you will immediately and freely, have the necessary monetary mass to perform the transaction. No more, no less. What counts is that the “wealth balance” is always positive for everyone. The currency is the tool that will enable this.

Open currencies embody this fundamental and universal claim that any citizen, any community, any organization has the right to create tools for wealth to flow. No individuals, no community should be dependent on monopolistic and private currencies, unless they have decided as such.