Open Money, what is it?

Is this too far fetched, open source money?

Thousands of different currency systems have been built during the past 100 years, with an acceleration the past 20 years (see complementary currencies). Open money is to be understood as the meta-system and standard that will let communities design the currency they need for their own purpose, and interact with one an other at local or global levels. Exactly like what happed with email, html, or http protocol.

It's likely that money will follows the same path that happened to medias and communication tools: they were once centralized, limited in numbers, expensive, owned and controlled by the few, closed systems. Now they are distributed, peer-to-peer, global and local, open. The same is about to happen to money.

Therefore in the next few years the world should expect to have millions of currencies. Just like it has today millions of medias, TV channels, blogs, discussion groups, etc. Each participant will join the currencies he/she needs for his/her own purpose.

Advantages of open money

  • Decentralized: no need for a centralized issuer like a bank, which means no threats from a centralized power.
  • Free: no interest is practiced because there is no issuer that makes a business of it. The only cost is the one of the infrastructure, which is a flat marginal cost, not an exponential one like in the interest.
  • Peer-to-peer: the total quantity of money in the community is determined in realtime by peer-to-peer exchange. There is no centralized authority that determines how much, where and when the quantity of money should be allocated. These can be seen as distributed fractal feedback loops to regulate the system and make it resilient.
  • Controlled by the people: the rules of circulation, credit limits, taxes, decision making processes, etc, are controlled by the community itself. These settings can be configured via software.
  • Sufficient: because based on mutual credit?, i.e. there's never a lack of money since it is created upon the needs/wants streaming.
  • Holoptical: transparent between users, and users have access to the meta level of the system to understand and regulate its whole equilibrium.
  • Adapted to all needs and all communities: whether communities are based on a local territory or a virtual one, each community exists because it has a circulating offer/demand within it. It can be time exchange, objects, services, knowledge... in a competitive or collaborative economy. Mainstream currencies only serve competitive markets, open money serves whatever market since it is sufficient and can be applied in any context.
  • Connected to any "real" or "virtual" value: any community currency can be based on a "real" value (time, gold, kilowatt, kilo of potatoes, oil, distance...) or a "virtual" value (i.e. no relation to anything in the real world, it is just a unit of exchange used by the community).
See for yourself and be the judge