Note: This essay is an early expression of a deregulated Money Supply. The Local Currency concept is an earlier statement of how a deregulated Money Supply would work.

Money is anything created or used by a business or group of businesses or a government department for commercial purposes - that is to track debits and credits. Local currency is money that is user produced, user controlled and user modified.

Local currency comes in two forms physical and digital. Designer currency is art currency created by a reputable artist. The physical note is an actual work of art created and signed and given a denomination by an artist who spends it into circulation.

Real money has no existence except as numbers. For ease of use and emotional resasons we often create physical representations of money and use physical things for money but the underlying reality is the debits and credits that we create when we exchange goods and services.

Electronic currency is used by exchanges and online systems as a bookkeeping tool to track what each person earns and owes. The exchange shows purchases as debits and earnings as credits allowing other members of the exchange to be aware of what type of balance the other member has.

Democratized money is used internally in a business as an administrative tool. For example a bakery could use a democratized currency to account for what each person contributes to the business, the hours worked and the assets provided and the goods consumed. Contributions are paid for in units of the currency. When the person purchases baked goods she or he is charged units of the democratized currency. In this way a business can operate for the good of its members without using conventional currency.

By using democratized money a member of the workshop can be paid an hourly rate for work done, a bonus for regular attendence and a further bonsu for useful suggestions without this impacting the amounts of conventional currency the company needs or uses.

Reserve accounting is a more formal application and may be useful for transactions that take place between workshops. A trust fund is created and money deposited in an account. Each person or workshop has a credit rating equal to his or her deposit. If a workshop deposits the money in the trust then its members are able to share the limit defined by the deposit.

Democratized money can also be used as a rewards program. People earn credits for specific types of behavior. The credits can be allocated by an administrator, the person themselves as in a behavior modification program, or by others in the program as a behavior modification program operated by peers.

Used as a personal rewards program a democratized money is created to the person can earn and lose points to reinforce good behavior. A person seeking to curb bad driving habits can use a private currency to reward himself with when he drives according to regulations. He may reward himself for stopping at a stop sign the prescribed time and debit himself points for not slowing down sufficiently in a school zone.

If used in a group setting participants can be given tokens of a certain value or other rewards for accumulating a certain number of points to help reinforce certain types of behavior.

Peer run programs can be operated in schools, prisons and other facilities where individuals reward others for cooperative and social behavior, a type of kudo. Tokens are created or some other democratized money and participants are given an amount of this that they can use to reward positive actions performed by others. This currency can be redeemed for badges or items at participating retailers.

The program may also contain the option of penalizing participants for unwanted behavior.




Money Types

the new peace movement - peace through money