Written by By Davian Views (Traditional Industrial Ecologist)

 

[Previously published: Parts one, two and three

 

Casinos prefer to use chips rather than cash because they are a much more efficient way to process money for the game than using cash.

The obvious solution was to impart the qualities of coloured casino chips to cash.

So this “Clever Cash” as I called it would have a serial number, the account number of the owner, and because of requirements of the money laundering regulations, also the history of who previously owned the cash. When this cash was spent in the shop, the shop would be the new owner, etc. Any suspicious transactions could be traced, thus forcing the criminals back to using “Dumb Money” like Gold and Silver coins and Illegal drugs, etc.

I thought that I was on to a winner with “Clever Cash” because it was simple and effective. I duly went to see the people at De La Rue who make banknotes as well as contacting the usual suspects. To make this short story, even shorter, Guess what? Not interested.

From this, I concluded that for some reason, the powers that be were happy with things as they were. In hindsight, there was a very good reason for not having a secure banking system, or wanting to stop money laundering. If a secure system had of been created, then none of the major financial scandals and the ensuing financial crisis would have been possible because they would have been seen as soon as they happened.

So today, we can rename “Clever Cash” and call it “Clever Jubilee (Jubbly)” instead.

I call the currency a Jubilee ( Joule Underwritten Barter Initiative Local Energy Exchange ) pronounced Jubbly in homage to “Only Fools and Horses,” which coined the expression “Lovely Jubbly”.

Using a £  symbol and rotating it through 180 degrees makes it resemble a capital J in a more traditional font, which is the essence of a tangible barter currency in that it turns a fiat currency on its head!!

For the person using it, the Jubbly needs to be as or more attractive than a Pound to use and hold, so I will now list the major advantages.

Firstly the Jubbly is underwritten by a quantifiable amount of energy; one Jubbly is backed by One Kilowatt Hour of energy, i.e., 3,600,000 Joules.

Secondly, the Jubbly allows the owner to make secure peer to peer payments, without having to log on and off of the internet.

Thirdly, the Jubbly combines the benefits of a Current account, Loan account, Savings Account, and Cash into one Account.

Fourthly, the Jubbly is clever in that it knows who owns it, at any point in time, as well as who has owned it previously.

Fifthly, the Jubbly pays the owner for holding it, in the form of discount over time. This is similar to interest but different, in that discount is not taxable, like interest. For example, a Nectar Card gives you points that can be exchanged for goods, but you are not required to report your Nectar Points on your tax return. Discount is widely used in retailing; you do not have to report the BOGOF (Buy one get one free) either. You do not even have to report cashback deals, money off coupons, etc.

The reason for this is that over time the Jubbly will be backed by produce that is either in stock or to be produced. This can be anything from Top Soil, Vegetables, Meat, Cheese, Petrol, Gas, Water, Labour, and Electricity. All the items we need can be quantified in the amount of energy required to produce and deliver them to where they are wanted.

As a portion of these items are yet to be delivered, a discount is credited because of paying in advance. For example, a discount of 4% per annum would be an attractive reason for holding Jubbly.

If, for example, you were a farmer, you could forward sell a portion of your field of Wheat to obtain the Fiat Currency to purchase the seeds and contractor to cultivate and harvest the Wheat. Your debt would be denominated in Jubbly based on the energy equivalent of Wheat, therefore, protecting you from fluctuations in the Fiat Currency price of Wheat. You could expect to pay a discount of 6% per annum for the loan.

At this point, the alert reader will have calculated that the difference between six and four is two. The two percent is the spread between Owner and Ownee, which is the Jubbly that is part of an income stream that contributes to making the system profitable for the operators of the Joule Underwritten Barter Initiative Local Energy Exchange (JUBILEE pronounced “Jubbly”).

It is also worth emphasising that, as stated earlier, there is no real difference between a Saver and Borrower. In order to save, someone has to borrow what has been saved; otherwise, it will be left in a mattress to gather dust mites and earn no return. In order to buy, someone must sell; otherwise, there is no trade.

Most internet operations are conducted in Cyber Space, with a limited Earthly presence, So what is the point of having coins?

Although to me, this is obvious, I shall out of courtesy to the reader outline the answers:

  • Lifeforms do not live in CyberSpace; they live in the “Real World” down here on Earth.
  • Lifeforms need a habitat to live in and interact with.
  • Touching and interacting with the physical manifestation of money, whether Fiat or Barter, creates a sense of ownership and empowerment in a way that numbers on paper or a screen do not.
  • The physical form of Jubbly Coins will endear them to their users.

How do the coins pay for the cost of operating them?

Firstly as a marketing tool for the JUBILEE as described above.

Secondly, as a marketing tool for the users. The increasing power of flash memory cards would allow members to advertise their goods and services on a flash memory in the Jubbly coin, that would be updated whenever a coin is used in a transaction so that offers and bids for goods and services are always current. When offers that are advertised are transacted, a commission is charged to the seller of the goods; otherwise, the advertising is part of the service.

Thirdly as a means of Double Entry Bookkeeping, allowing reconciliation auditing as part of the JUBILEE operating system.

A Personal Transactor is used for making face to face transactions, allowing transactions to be made in remote areas, where mobile phone signals are weak, or there is not a landline. The concept is like having a portable safe. Jubbly coins are locked unless you have your Personal Transactor to open the safe. The other member with whom you are doing a deal will have his Personal Transactor to facilitate the transfer of ownership of Jubbly from you to him or her.

Because there are two Personal Transactors used in each transaction, the data from each Transactor is sent separately to the JUBILEE System Transactor and verified when the data is compared and then validated.

At this time, a Kilowatt Hour is priced at circa £0.10, so a J10 coin will be worth £1.00. To allow for future price fluctuations, a similar system to the penny would divide a Kilowatt Hour by a 100 to give a Jubbly a Jenny as the subdivision. A Jubbly price would, therefore, be written as J10.50j, equivalent to £1.05p.

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