towards a quality financial commons? › ... › qualitycommons-presentation9.pdf · 2019-10-01 ·...
TRANSCRIPT
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TowardsaQualityFinancialCommons?
DavidHalesTechnicalUniversityofDelft,
TheNetherlandswww.davidhales.com
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Tragedyofthefinancialcommons
• Someexamples:– Individualbankcreatesexcessivecreditthroughlaxloansthatcanbesecuritisedandsoldon(toanotherbank)
– Assetbubblestransferwealthfromthemajoritytotheminority
– Statedebasesthecoinviaprintingmoney
• Twobroadresponses:– Morecentralcontrol–HobbsianLeviathan– Lesscentralcontrol–Efficientmarkets
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Somefinancialfunctions
• Valuetransfer• Creditcreation• Valuestorage• Exchangeofservicesandproducts• Qualitymoney?
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Alternative
• Possibleemergingalternative:– Radicallydecentralisesystemsthatsupportfinancialfunctions
– Useemergingtrendsindistributedinformationsystems
– Alternativeeconomic/cooperationtheories
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Emergingtrendsininfo.systems
• Overrecentyearsanumbertrendshaveemergedwithininformationsystems:– socialnetworks(facebook,LinkedIn)– peerproduction(wikipedia,opensource)– peer‐to‐peersystems(BitTorrent)
– virtualcurrencies(secondlife,farmville)– cheapmobiledevicesconnectedtoglobalnetworks
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Alternativecooperationtheories
• Bottom‐upformsofaltruismandtrust– groupselection,migration
• Reciprocity:– direct,indirect,network
• Others:– affinity,reputation,altruisticpunishment
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Someon‐goingprojects
• P2Plending(eliminatebanks)• Membersbanks(becomepartofabank)
• Moneyfreeeconomies(eliminatemoney)
• P2Pmoney(createyourownmoney)
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Eliminatingbanks/interest
• Zopa–P2Plendingsystemwithoutabank.Nonlocal,becomingsuccessful
• JAKBank–Membersbankcontrolledbyandforonlythemembers.Eliminatesinterest.Highlylocal
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Eliminatingmoney
• CouchSurfing–peoplefreelysharespareaccommodationallovertheworld.Globalandactive
• Freecomony–peoplefreelyshareanything(generallylocalised)
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P2Pmoney
• Usingasocialnetworkoftrustedfriends• Eachpersoncanapplyacreditleveltoeachlinkinanymonetaryunit
• Paymentsbetweennodes(valuetransfer)involvesthesystemfindingarouteofcreditbetweennodes
• Dependsontrustandenoughback‐to‐backtransferstobalanceovertime
• ComparetoHawalasystemandother“informalvaluetransfer”IVF,systems
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P2PMoney
• Currentlyknowofnowidelyuseddeployedsystem
• Bootstrappingproblem‐possiblewayforward:– Createap2pvirtualcurrencyinavirtualgameworldwithexistingsocialnetworks
– Takedetailedmeasurementsandcollectdata– Seeifitworksandproducemodels
– Ifsuccessfulgrowthecurrencyoutsidethevirtualgame
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Qualitymoney
• Subjectiverating=objectivequality?• Inagivencommunity:– ifenoughpeoplebelieveaunitofexchangeishighqualitytheywillacceptitforpayment
– thenitishighquality– But,youcanonlyfoolsomeofthepeoplealloftime…
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Let1000experimentsbloom
• Givenasufficientecologyoffinancialcommonssystems(avoidingafinancialmonoculture)
• Individualscan“votewiththeirfeet”migratingtothosethatareofhighquality
• Henceeven“rational”behaviourcoulddrivequalityratherthandrivingitout
• Tiebout(1956),Hayek(1978)‐backtosquareone?