Yeah thats the point. I have local steak credits & I want to trade with someone else’s local lawn mowing credits. Local makes the issue worse.
90% of credits traded would be national producer credits. Think Safeway, Walmart, or Lowes. Everyone would need Food or housing, so the day to day trades would be in these tokens.
& what prevents me from making fractional loans backed by safeway credits?
Producer credits have a claim date to prevent the re-loaning process. Credit is created, circulated as money, then extinguished when the Good or Service is claimed.
If the claim date is 1 year (as in the Toyota example) that is enough time to re-loan it out.
The video i sent earlier explained how loans would operate in the system. It would be self balancing unlike now.
so you still need brokerage between these with routing between them, accounting for their trustworthiness. not to mention these companies dont specialize in money creation/management.
Bitcoin with colored coins would manage much of this. Since your very interested in this new form of money, this video explains the details.
& you still have the routing problem.
Its p2p on Bitcoin. There is no routing, only mining of the token ontop of GROUP or OP_RETURN.
Sure you can make colored coins but their supplies will be in constant flux. Their values determined by the trust in the issuer (nebulous, difficult to determine) & the number of coins
You trust walmart to have goods in supply? I believe their credit would be very trustworthy and less fluctuating than crypto markets are.
money "backed by a commodity" just means people are willing to trade money for that commodity at a price. that is already the case for anything you can buy.
Not even close. The Money is a third party utility, while producer credits are priced in money, they are not money itself. This small difference is the key.
