Intercoin Application: Virtual Currency


#1

Since Intercoin’s communities can peg their currency to any outside currency, it logically follows that Intercoin can spin up a “virtual version” of any coin, including coins currently built by countries like Estonia, Venezuela, and so on. They can build it on any technology they wish (ERC20 doesn’t handle enough transactions per second to be viable for payments at the moment). And then, their individual citizens may decide to exchange it for a “virtual estcoin” or “virtual petro” by buying into the Intercoin economy!

Because Intercoin is held on full reserve, every currency is fully exchangeable for any other at any time, limited only by publicly posted restrictions of the respective communities. If Intercoin’s network allows faster payments, and better liquidity between any currency pairs, many people may decide to buy digital representations of their USD, BTC or any other fiat or crypto currency.

Thus, no matter what technology was used to launch the original currency, the holders of that currency may buy into the Intercoin ecosystem for the benefits, and also enjoy all the community applications on top because Intercoin has programmable community money.

In that case, the result would be capital flowing into the Intercoin community, and staying there because trading virtual representations of Bitcoins and USD, and doing everything else with them, is possible without having to pay market spreads or intermediaries.

In short, Intercoin can become a sort of universal, decentralized exchange that is not controlled by anyone, able to generate virtual versions of any virtual currency.


Intercoin Economics: Exchanges
#2

Hello,

Persay a country’s currency were too juristically drop in value relative to other currencies and you were scared for your financial well being. Would it be possible to protect yourself via exchanging your currency for another not in financial distress?

Thanks


#3

Intercoin should provide liquidity between any currency pairs in the system. Virtual currencies can be one way to “obtain” currency whose real version normally would be hard to obtain in a country. And that virtual version has various benefits from all the apps built on top of the platform.

Current monetary policy of federal currency is done by elites. Warren Mosler and Stephanie Kelton talk about the effect of central bank interest rates on inflation:

A community that has its own currency can have its own monetary policy. We plan to implement democratic governance mechanisms through Provably Random Polling to allow people as a whole to determine how much money should be issued and distributed to community members. Then each individual member makes a decision how to spend that money.

Intercoin could enable each community member to understand how the community currency is flowing around their local economy, and make monetary policy decisions as a crowd. With time, the software could suggest which policies are correlated with certain goals (eg high employment, or better health outcomes). The data could be shared with third parties to build even better analysis tools.

Thus a local community in a country like Venezuela whose sovereign currency’s value is dropping may issue its own currency and peg it to some other currency. They can then pay for public projects or Basic Income by inflating their own currency slightly, while keeping it pegged to something like the Dollar.