INSTITUTE FOR THE DEVELOPMENT OF THE CREDAT (IDC)
PURPOSE : Tokenization of the monetary base as a creation of money supply and integration of the cryptos technology
Money is probably one of the most important human concept but also a misunderstood concept. Money is the root of many wars and struggles…. But is Money like Evil ? I don t think so.
The etymology of the verb « to pay » is the latin verb PACARE which mean « make peace ». In complex social interactions, we have to show gratitude and recognition. So, money should be a social tool to make peace.
However, money became very often a tool of social domination, because peace and control are really close. We know the latin quote « si vis pacem, para bellum » , « who want peace have to prepare war.
so, if we step aside from the dark side of the mankind and stay focus of the nature of money, we see that , for a very long period, money has taken the form of tangible assets. Monetary systems using gold, silver and copper were very common. They showed us the need for currencies to hoard and currencies to use. Gold coins were hoarded, copper coins circulated easily.
stamps, shells, stones, playing cards, tokens etc …. The form of money has changed depending historical contexts.
Paper money appeared in China but spread in the West. At the origin, paper money is a promise. Instead to travel far with an amount of gold, the traveler had a paper and the guarantee to find gold at his destination. Since 1971, paper money is not anymore backed by a tangible asset. It s only a debt, emitted from the most liquid assets of a central bank. And the Fractional Reserve Banking System created différent monetary aggregates less and less liquid.
All the system is based on the CREDIT ! But what is the etymology of credit ? It came from the latin verb CREDERE , believe … at the present tense and indicative mode.
It seems that The key issue of all the financial problems worldwide are the quality of the assets owned by the central banks…. The system works with the western currencies as assets for the central banks worldwide.
But there are various opinions on the quality of these currencies as assets. And to buy them, all the countries must give something tangible.
This system authorizes the western countries to spend without real limits … and this unlimited spending decreases the value of the western currencies. So, all other countries do worthless efforts to buy USD, EURO , GBP …..
Russia and china seem working on an alternative system backed by a basket of currencies and energy and gold …. It s an interesting vision ! It should create a sustainable unit of account , Like the euro could have been, if we have kept parity between each national currency and the euro, as a common currency, but not an unique currency.
I believe that the system of credit creates a social and environnemental pressure on the planet which is unsustainable at global scale…..
The credit had sense in a merchant economical system and appeared as the monetary paradigm in this situation but is not sustainable for an entire society. Since the beginning of the industrial revolution, we see currencies born, live and died …. The credit requires a unlimited creation of money supply. Recession are used to cope with inflation and create social traumas.
Before capitalism, people became rich only by wars, slavery and robbing. Capitalism authorized the creation of value, by adding value and helping others. Financial capitalism can t be too much disconnected to reality … and financial capitalism is not capitalism. Financial capitalism works by a smart understanding of the monetary uses. Friedrish Hayek has developed a theory about the competition between currencies …, but he had not the technology of cryptos and blockchain. Now, I really believe this theory can be socially helpful.
Cryptos are not yet money , because cryptos are not a tool for peace yet, only a tool for speculation ….
We believe in a monetary system for the future split in a two part :
the first part regulated by law with several major big currencies, well backed with an international control and used at a regional and international level. This money supply would be regulated by the law
The second part is a massive use of tokens and social cryptos at local level. I really believe about the need to develop education and intelligence about monetary issues. This money supply would be regulated by the purpose.
Crowdfunding, NFT , tokens, stable coins are significant tools to help companies to fund themselves instead to use the stock market which take time and depends entirely of the monetary policies.
The globalization is entering in a. Reversal process … and the world is becoming highly elitist. Without some action, poverty and inequality will still increase . We have to give human beings the right social tools.
That s the purpose of the CREDAT which means « I believe « in latin, but at subjonctif tense …. And which represent the money creation of token and social cryptos.
the main idea is to make the money creation MORE AND MORE LIQUID, instead to less and less with fractional reserve banking ……
Currently, cryptos money are traded , but only used as currency in desperate situations… and not with great results. Because the lessons about Gold money have not been learned : Scarcity does not make a money, liquidity and trust make a money …. And liquidity should involve a cultural dimension. Keep in mind money is a social tool !
Complementary currencies are an nice attempt to develop social links in a special community … but, it s not really money, but you can t use complementary currency as a capital.
So, the current attempt of diversification for money are brave but not accurate, because they want to fight the current financial and monetary system. The project around the CREDAT is différent … We start from the current system and we believe we correct something wrong and bring something new.
TANGIBLE USE OF CREDAT
By tokenizing tangible cash, using a personalized unit of account or ad hoc currency, 1) , we are not feeding inflation …. This cash is « frozen » but from it, we create a financial liquidity regulated by the purpose and we develop more social links. Being paid does not involve necessary money, it can t involve also exchange of services or donations …. It means we create the root for the creation of value , without the predation connected with the fractional reserve banking.
The use of a such system would have a major change : inflation control …… The currency should not decrease in value because the money supply won t increase so artificially. It means inflation would happen only on « availability » ….. , not on demand.
It will be a personalized liquidity for each specific purpose….
For example, What can we do with Hvrynia ?
Ukrainians refugees struggles to change their Hrynias … We could keep the Ukrainian currency tokenized it and make a token to be used by some businesses as a sign a solidarity with Ukraine …
If Hvrynia collapse, the token will be backed by all the energy developed to create useful exchanges and new values
If Hvrynia does not collapse, the useful exchanges and new values created will have a tangible capital to manage more tangible actions
