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MyCHIPs Digital Money

Content Illustration

New Money

MyCHIPs can work just fine side by side with other, existing forms of money. But it has been carefully designed to solve a number of undesirable problems that plague our current systems.

These include:

  • Inflation
  • Exponential growth of the money supply
  • Bank failures
  • Monetary crises
  • Abuses of regulatory power
  • Involuntary debt, or servitude
  • Unfair access to credit
  • Financial institutions becoming “too big to fail”

We should recognize, a traditional monetary system is practically impossible without some kind of objective intermediary to regulate transactions and mediate disputes between trading partners. Old money solved this problem by creating an all-powerful, government sponsored monopoly that issues money and unilaterally sets monetary policy for the entire economy. Bitcoin addressed it by creating a distributed network of computers that resolve contentions by the consensus of the user base.

MyCHIPs is similar to the Bitcoin model in that it distributes regulatory power broadly among its own users. But that regulation is not done by consensus, but rather on a peer-to-peer basis. You don’t have to trade with anyone you don’t feel you can trust. And if you want credit from other people, it is up to you to prove you will be reliable.

MyCHIPs also follows some valid principles from the central banking model. This includes the concepts that money is created through indebtedness, and that the total money supply can, and should be, elastic—growing and shrinking to meet the demands of the economy.

Like Bitcoin, MyCHIPs employs an open-source software core that operates according to a standard, published operating protocol. But more than just open-source software, the medium itself is open-source. Anyone can create and issue their own credits. And the backing, or assets used to guarantee its underlying value are available for creditors to examine and scrutinize.

We call software open-source because we can see and modify the source code. MyCHIPs money is open-source because creditors can see and understand the source of its value—the collateral that backs it up.

In addition to issuing money, participants can also perform other regulatory duties we would normally associate with the government or a central bank. For example, anyone can become a lender, a borrower, an auditor, or an insurer—even in some cases, an enforcer for the rules of the system. People and companies can compete within the system to perform these functions in the best possible way and at the lowest possible cost.

People can also choose a quieter presence on the network, just as consumers. Their identities are known only to those they normally do business with like employers and service providers.
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