Presentation accompanying a workshop on designing alternative currency systems held on Feb 6th at LIFT15

1. D E S I G N I N G A LT E R N AT I V E
C U R R E N C Y S Y S T E M S :
H O W, F O R W H AT P U R P O S E A N D H O W T O S E T T H E R U L E S ?
PA U L B R I S T O W, PA N G L O S S L A B S

2. – C H A R L E S D I C K E N S
“Annual income twenty pounds,
annual expenditure nineteen pounds six,
result: happiness.
Annual income twenty pounds,
annual expenditure twenty pounds six,
result: misery”

3. W H AT I S M O N E Y ?

4. H O W D O E S M O N E Y G E T C R E AT E D ?
Bank Customer
“I’d like to borrow
10000, please”
“no problem”

5. A C C O U N T I N G : N O T H I N G H A P P E N E D
Bank Customer
-10 000
+10 000
0

6. N O T T H E W H O L E S T O RY…
Bank Customer
-10 000
+10 000
0
Loan
Interest
+1 000
Fees
+1 000Where does this
come from?
+12 000
+10 000

7. N O T T H E W H O L E S T O RY…
Bank Customer
-10 000
+10 000
0
Loan
Interest
+1 000
Fees
+1 000Where does this
come from?
+12 000
+10 000
It’s money, so it must
have been created by
another loan in the system

8. T H E I N T E R E S T PAY M E N T S D R I V E T H E
S Y S T E M I C N E E D F O R G R O W T H
0
5500
11000
16500
22000
loan repayment loan repayment loan

9. R O U N D TA B L E
E X A M P L E S O F A LT E R N A T I V E C U R R E N C Y S Y S T E M S
M AT H I E U B U F F E N O I R
S W I S S B I T C O I N A S S O C I AT I O N
A M I N K H O S R AV I
M Y D R O P I N T H E O C E A N S . O R G
A N T O N I N C A L D E R O N
M O N N A I E L O C A L E D E G R A N D G E N E V E
B E R N A R D D U G A S
B A L A N C E D M O N E TA RY S Y S T E M
Image: CC-BY-SA 2.0 Janos Korom

11. THE PURPOSE OF THE
BALANCED MONETARY
SYSTEM (BMS)
• PREVENTING FRAUD
by using formal double accounting
protocol and transparency
• RESPECTING
PHYSICAL LAWS OF MEASUREMENT
SYSTEMS by using clear scales
• ENSURING FREEDOM AND
RESPONSABILITY:
everyone making own personal
central bank

12. T H E R U L E S O F T H E B A L A N C E D
M O N E TA RY S Y S T E M
Desired Effect Rule
Personal account measures the import/
export unbalance with traceability
Each human can make a personal
recording account with measurment
referential parameters (origin, sign, scale)
that can be checked by others
There is only ONE class of HUMANS :
thus there is equality of initial economical
power.
Import unbalance is automatically limited
and each HUMAN has the same right to
“import unbalance”
The scale of a transfer price is formally
adjusted to the scales of accounts
according to laws of physical
measurement
The amount for “import unbalance right” is
the measurement scale for price value
negociation (poverty level)
System stability obtained through
automatic return to balanced state
The Rate of Return to Equilibrium
defines the speed for automatically
decreasing the unbalance current
amount
Financing other's projects The initial amount of “import unbalance
right” is reserved for financing other's
projects

13. T H E P U R P O S E
O F B I T C O I N
• First a definition of the technology:
• Bitcoin is a peer to peer network
that maintains a public
decentralized ledger of digital
assets. This ledger is called a
blockchain.
• Digitally prove ownership ("I am
the only one able to transfer this
token").
• The first and easiest application of
this technology is to create a
currency. The unit is called for now
bitcoin.

14. T H E R U L E S O F B I T C O I N
Desired Effect Rule
Scarcity 21 000 000 Bitcoin Units
Divisibilty Each Bitcoin Cointains 100 000 000
Satoshis (Total Of 2.1 Quadrillons)
Malleability Easy To Recombine Fractions Of Bitcoins
Durability Purely Digital, Millions Of Copy Of The
Ledgers Exists
Portability Sent Over The Internet, Transactions Only
Take Minutes
Privacy Users Pseudonymously Identified By Their
Public Address
Fungibility Very Difficult To Differentiate One Bitcoin
From Another

15. T H E P U R P O S E
O F S O L A R C O I N
• Based on the same
technology as Bitcoin, it
serves the same goals as a
currency with an added
one:
• Electricity used by the
computers supporting the
network must be produced
by a renewable source of
energy.

16. T H E R U L E S O F S O L A R C O I N
Desired Effect Rule
As a currency it uses the same rules as bitcoins
+
Creation of the coins and distributions of the
processing fees is done with the help of a
Foundation that ensure that the source of
energy used are renewable.

17. P U R P O S E O F M Y
D R O P I N T H E
O C E A N S
• Greater balance between
our economy and nature
• Empower people to value
nature

18. R U L E S O F D I O
Desired Effect Rule
Balancing Economy With Nature Global Complimentary Currency To
National Currencies
Association Of Human Activity With
Environmental Costs
Creation & Circulation Of DIO Linked
To Environmental Costs
Incentivising Positive Actions Towards
The Environment
Rewarding People & Businesses For
Environmental Behaviour With DIO.
Incremental Rewards Linked To Status
Shared Responsibility For Nature’s
Stewardship. Wealth Equality.
Citizens Dividend Linked To Nature
DIO Stability Cannot Be Speculated Or Traded
With Other Currencies. Pegged To
Stable Metrics.

19. THE PURPOSE OF A
LOCAL CURRENCY
● Revitalize the regional
economy
● Create social links
● Ecological Impacts
● Allow citizens to think
about money creation

20. THE RULES OF A LOCAL CURRENCY
Desired Effect Rule
Development of activities
characterized by specific values
Ethics guidelines
Focus the circulation between certain
economic actors
Stakeholders: Businesses /
Individuals / Authorities
1) Allow everyone to enter the
system, Money multiplier through
guarantee fund
2) Money issued simultaneously with
transactions,
Mutualization of the credits/debts
Principles of creation:
1) Pledged currency
2) Credit clearing system
3) Interplay of both
Incitement to join the network,
Reassure members
Convertibility: One way /
Back and forth / Incentive exchange

21. THE RULES OF A LOCAL CURRENCY
Desired Effect Rule
Acceleration of the velocity of money
circulation
Stamp Scrip
Citizen sovereignty over currency Governance: Sortition /
Representativeness / Proportionality
Balance between symbolic role of
material money and its practicality
Format: Paper / Electronic

22. W H O H A S U S E D A N
A LT E R N AT I V E C U R R E N C Y ?

23. – M I LT O N F R I E D M A N
“The short answer—and the right answer—is that
private persons accept these pieces of paper
because they are confident that others will. The
pieces of green paper have value because
everybody thinks they have value. Everybody
thinks they have value because in everybody's
experience they have had value...”
W H Y D O W E B E L I E V E I N M O N E Y ?
Isn’t that the definition of a Brand?

24. Y O U R T U R N
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S
panglosslabs.org/currency

25. W H AT P U R P O S E D O Y O U WA N T ?
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

26. G E T I N T O G R O U P S
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

27. Y O U R T U R N
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S
R E M A I N I N G T I M E :

28. Y O U R T U R N : R E S U LT S
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S

29. T H A N K Y O U
D E S I G N I N G A LT E R N A T I V E C U R R E N C Y S Y S T E M S
M AT H I E U B U F F E N O I R
S W I S S B I T C O I N A S S O C I AT I O N
A M I N K H O S R AV I
M Y D R O P I N T H E O C E A N S . O R G
A N T O N I N C A L D E R O N
M O N N A I E L O C A L E D E G R A N D G E N E V E
B E R N A R D D U G A S
B A L A N C E D M O N E TA RY S Y S T E M
Image: CC-BY-SA 2.0 Janos Korom
PA U L B R I S T O W
PA N G L O S S L A B S