How to save the world with currency
- open business
- 16 November 11:30 - 12:00
Some major flaws in the design of our currency systems lead to social and environmental problems that could easily be solved by redesigning our currencies.
It is easy to understand that cutting the lawn with a pair of scissors is not effective and cutting your hair with a lawnmower is dangerous. It is less obvious that we are we are doing the equivalent of the latter when it comes to our economy.
If we agree on the assumption that the most fundamental purpose of economy is to enable the flow of resources to where they are most needed and we also agree on the the fact that resources and needs are highly heterogenous in their nature, the obvious begins to emerge.
The questions addressed to make this more visible are:
# What are the main flaws of our currency systems?
- backing by GDP
- positive interest
# What are their consequences?
- encouraging misuse and destroying of resources
- putting enormous economic pressure on people and businesses
- creating an inherently instable system (Complex flow system theory)
# How can we solve these by currency-design?
- backing currencies on things we want or need more of (Example: Ghent, Belgium)
- consciously designing the behaviour of currencies by adding negative interest to the game (Example: Wörgl, Austria)
- creating multiple currencies for various ecosystems (Example: WIR, Switzerland)
# What is the state of affairs?
- approximately 2500 experiments globally
- common ground emerging
- politics beginning to integrate these ideas (Nantes, Ghent)