nordic enterprise trust the community is the currency - innovation in complementary currencies
TRANSCRIPT
![Page 1: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/1.jpg)
The Community is the Currency
Philosophy Conference
Chris Cook, Kragerø
07 June 2009
Money 3.0
Today I am going to be talking about the future of Money......Money 3.0
![Page 2: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/2.jpg)
Money 1.0 - Money of the Past
Currencies consisted of valuable objects
![Page 3: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/3.jpg)
Exchanges for value – money’s worth -required physical market presence
Money 1.0 - Decentralised and Disconnected
![Page 4: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/4.jpg)
Money 2.0 - Money of the Present
Currencies are interest-bearing IOU objectsor claims over value...
![Page 5: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/5.jpg)
...issued by Private Banks
...and Central Banks
![Page 6: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/6.jpg)
...who step between borrower and lender
Borrower LenderLender
£ Loan
08/07/2011
...or seller and buyer
Seller BuyerBuyer
£ Credit
08/07/2011
![Page 7: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/7.jpg)
...to provide a framework of trust through an implicit guarantee
Banking
System
Banking
SystemBorrower
Lender
(Depositor)
Lender
(Depositor)
£ £
08/07/2011
...supported by a base of Regulatory Capital
Bank Credit
Bank
Equity
08/07/2011 14
![Page 8: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/8.jpg)
Money 2.0 - market presence is typically through intermediaries
Money 2.0 - Centralised and Connected
![Page 9: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/9.jpg)
Money 3.0 - Money of the Future
Money 3.0 - involves direct, instantaneous Peer to Peer (P2P) connections....
![Page 10: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/10.jpg)
Money 3.0 - market presence is “network presence”
Money 3.0 - Decentralised and Connected
![Page 11: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/11.jpg)
Cool....but what is Money 3.0?
Nordic Enterprise Trust works where the Internet and Markets converge
![Page 12: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/12.jpg)
With a little help from Innovation Norway...
....NET has developed a new framework for P2P Finance
![Page 13: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/13.jpg)
P2P Credit and P2P Investment together comprise Money 3.0
Let’s look first at P2P Credit
Sellers BuyersBuyers
08/07/201126
![Page 14: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/14.jpg)
Sellers give buyers interest-free credit –or “time to pay”
Sellers BuyersBuyers
08/07/2011 27
Credit
Value
Credit is guaranteed by a Guarantee Society of seller and buyer members...
Sellers BuyersBuyers
08/07/2011 28
Pool
GuaranteeGuarantee
![Page 15: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/15.jpg)
...with some kind of “common bond”: geographical, functional, or both
Sellers BuyersBuyers
08/07/2011 29
Pool
GuaranteeGuarantee
Both sellers and buyers pay into a Pool for the use of the Society’s Guarantee
Sellers BuyersBuyers
08/07/2011 30
Pool
GuaranteeGuarantee
Fee Fee
![Page 16: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/16.jpg)
Buyers settle credit in money, or money’s worth of Value acceptable to sellers
Sellers BuyersBuyers
08/07/2011 31
Pool
GuaranteeGuarantee
Fee Fee
Value
If buyers default, the Pool pays sellers, and collects from buyers
Sellers BuyersBuyers
08/07/2011 32
Pool
CollectsPays
![Page 17: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/17.jpg)
A service provider sets guarantee limits, handles defaults & manages the system
Sellers BuyersBuyers
08/07/2011 33
Pool
Service
Provider
Service
Provider
Services Fee
Fee
Guarantee
Guarantee
Fee
Now that Banks’ ability to create and support credit has evaporated....
Bank
Equity
Credit
08/07/2011 34
![Page 18: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/18.jpg)
...a Guarantee Society provides a complementary trust framework...
...where Banks may manage credit creation as service providers
Sellers BuyersBuyers
08/07/2011 36
Pool
Service
Provider
Service
Provider
Services Fee
Fee
Guarantee
Guarantee
Fee
![Page 19: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/19.jpg)
If a barter system incorporates time to pay –Credit - the result is a monetary system
Since 1934 the Swiss WIR business network has cleared credit for SME businesses....
![Page 20: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/20.jpg)
...for billions of Swiss Franc’s worth of goods and services
No Swiss Francs change hands as a currency or Unit with exchange value
![Page 21: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/21.jpg)
The Swiss Franc is an abstract Unit of measure - a Value Standard, or benchmark
The WIR is a monetary system which is complementary to the Swiss Franc
![Page 22: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/22.jpg)
The WIR takes security over members’property to protect against defaults...
...so the WIR framework of trust is backed by property
![Page 23: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/23.jpg)
NET’s Guarantee Society is a new framework of trust for P2P credit....
Sellers BuyersBuyers
08/07/2011 45
Pool
Service
Provider
Service
Provider
Services Fee
Fee
Guarantee
Guarantee
Fee
...enabling value to circulate and the creation of new productive assets
![Page 24: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/24.jpg)
Although Credit is necessary for the circulation of currency....
...contrary to conventional wisdom it need not actually be currency....
![Page 25: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/25.jpg)
...and other Units of Value may be generally acceptable as currency
This is where P2P Investment through Unitisation comes in
![Page 26: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/26.jpg)
There are conventionally two types of ownership - Public or Private...
08/07/2011 51
...and there are two types of investment: Debt and Equity
08/07/2011 52
![Page 27: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/27.jpg)
Investment through a Limited Company...
08/07/2011 53
....a 19th Century legal dinosaur...
08/07/2011 54
![Page 28: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/28.jpg)
...is what makes the Private Sector Private
08/07/2011 55
Credit is typically issued by banks and secured by legal claims
08/07/2011 56
![Page 29: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/29.jpg)
...giving two conflicting claims over the same productive asset
08/07/2011 57
But there’s a new furry mammal out there....
08/07/2011 58
![Page 30: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/30.jpg)
...the 21st Century UK Limited Liability Partnership (LLP)
08/07/2011 59
A UK LLP is a corporate body with limited liability....
08/07/2011 60
![Page 31: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/31.jpg)
...and...errrr...that’s it!...
08/07/2011 61
As far as the UK Tax Man is concerned it is a Partnership
08/07/2011 62
![Page 32: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/32.jpg)
It’s an “Open” Corporate where
partnership working is possible....
08/07/2011 63
... even without a written agreement
08/07/2011 64
![Page 33: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/33.jpg)
It enables direct Peer to Peer (P2P) Credit and Investment
08/07/2011 65
Over 46,000 UK LLPs are now in pervasive use for purposes never intended...
08/07/2011 66
![Page 34: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/34.jpg)
...even in the Public Sector, where Glasgow has four municipal LLPs
08/07/2011 67
Capital Partnership – direct Peer to Peer investment in productive assets
08/07/2011 68
![Page 35: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/35.jpg)
Hilton Capital Partnership ( > £1bn)
Capital Partnership LLP10 UK Hotels
Gross Revenues
Hilton GroupCapital User
Consortium LLP Capital Provider
BankProperty
DeveloperHotel
Specialist
% %
%%%
Capital Partnership
AssetsAssets
Investors
Payment
% %
Custodian
Use
Managers
Users
![Page 36: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/36.jpg)
Productive assets are held by a Custodian
AssetsAssets CustodianCustodian
Ownership
...who safeguards the asset on behalf of the Community
AssetsAssets CustodianCustodian
Ownership
![Page 37: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/37.jpg)
Investors put in Financial Capital in money, or money’s worth…
AssetsAssets
Investors
CustodianOwnership
FinancialCapital
Managers provide Human Capital of time, expertise and experience....
AssetsAssets
Investors
CustodianOwnership
HumanCapital
FinancialCapital
Managers
![Page 38: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/38.jpg)
Users pay for the use of Capital
AssetsAssets
Investors
Payment
% %
Custodian
Use
Managers
Users
Result: Capital Partnership
AssetsAssets
Investors
Payment
% %
Custodian
Use
Managers
Users
![Page 39: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/39.jpg)
Capital Partnership reinvents Equity
Equity Shares - % age shares in revenues or production...
08/07/2011 78
![Page 40: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/40.jpg)
…..which may be transferred, but never redeemed, since there must always be 100%
Units – Redeemable in production e.g.Kilo Watt Hours, natural gas
![Page 41: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/41.jpg)
Units have a value in exchange, but no rights to production or income over time…
Equity Shares in property – the Value Proposition
08/07/2011 82
![Page 42: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/42.jpg)
A new form of Co-ownership between Occupiers and Investors
08/07/2011
Occupiers may invest simply by paying more rent than is due
08/07/2011
![Page 43: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/43.jpg)
...and if they wish, they can pay their rent in Equity Shares, rather than £
08/07/2011
Co-owner Occupiers who maintain property may receive Units as “Sweat Equity”
08/07/2011
![Page 44: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/44.jpg)
Energy Units - the Value Proposition
08/07/2011 87
Investors - direct investment in energy with no return...
08/07/2011 88
![Page 45: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/45.jpg)
....similar to an investment in gold...
08/07/2011 89
...except that while gold may be pretty...
08/07/2011 90
![Page 46: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/46.jpg)
....it’s not useful in the way that electricity is
08/07/2011 91
Consumers – the ability to lock in the price of future consumption
08/07/2011 92
![Page 47: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/47.jpg)
But Investors wanting to sell may not find Investors wanting to buy....?
08/07/2011 93
No Problem! Consumers will buy if the Unit price falls below the market price...
08/07/2011 94
![Page 48: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/48.jpg)
...because they gain by buying Units and redeeming them against energy used
08/07/2011 95
Interest-free financing through monetising renewable energy...
08/07/2011 96
![Page 49: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/49.jpg)
...by issuing - for value now - Units that will cost nothing to redeem
08/07/2011 97
Capital Partnerships are not Organisations
08/07/2011 98
![Page 50: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/50.jpg)
They do not own anything, do anything, employ anyone, or contract with anyone...
08/07/2011 99
They are simply frameworks for P2P investment with cross border application
![Page 51: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/51.jpg)
...transcending borders through interactive consensual agreements
08/07/2011 101
...rather than adversarial contracts imposed by national statutes or courts
08/07/2011 102
![Page 52: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/52.jpg)
Master Partnerships require no legislation...
MasterPartnership
MasterPartnership
Financial Capital(Money, IP etc)
Financial Capital(Money, IP etc)
UsersUsers
Human Capital(Developers, Operators)
Custodians(National)
Custodians(National)
% %
payment
08/07/2011 103
..and there are no national or international institutions and hierarchies
![Page 53: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/53.jpg)
My vision of Money 3.0 is of a networked Clearing Union
Units redeemable in land/ location rental will be acceptable domestically
![Page 54: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/54.jpg)
Units redeemable in energy will be acceptable globally
Transactions will be priced by reference to an energy standard or Unit of measure
![Page 55: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/55.jpg)
Credit issued by individuals and enterprises will be backed by mutual guarantees...
...so communities with a common bond provide frameworks of trust
![Page 56: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/56.jpg)
Money 3.0 is not an Object: it is a Relationship
The Community is the Currency
![Page 57: Nordic enterprise trust the community is the currency - innovation in complementary currencies](https://reader034.vdocuments.us/reader034/viewer/2022052509/55a102a11a28abf1078b45d4/html5/thumbnails/57.jpg)
Thank You
08/07/2011 113