FAQ
Money vs MergedCash
Functions of Money vs Local Currencies
Characteristics of Money vs MergedCash
| Function | Money | Local Currency |
|---|---|---|
| Medium of Exchange | Digital, Paper, and other bank regulated mediums | Digital, paper, and sometimes barter |
| Measure of Value | Government Authority (Law enforcement & military protection of infrastructure) | Products, services, relationships and commitments within the local community (Love your neighbor as yourself) |
| Store of Value (Savings) | A strategy to dominate resources by accumulating units of medium-of-exchange in a competitive global economy leading to increased poverty | A strategy to multiply resources by accumulating business-relationships in a collaborative closed-loop economy of shared value leading to increased output and purpose |
| Standard of Deferred Payment (Debt) | "I owe you" by loaning from banks so they can charge interest on negative values. (Here insurance companies were born to cover SOME "I owe you" risks) | "I owe you" by contract and relationship. (Here community responsibility is born to teach youngsters and cover risks that insurance companies can't truly pay for) |
| Characteristic | Money | MergedCash |
|---|---|---|
| Durability | Money must be able to withstand repeated use and handling without significant wear and tear. This ensures it remains useful over time. | MergedCash is both digital and paper-based making it as durable as it gets. |
| Portability | Money should be easy to carry and transport, making it convenient for everyday transactions. | MergedCash goes everywhere your phone and printed cash goes. Not only that but you can also print cash vouchers anywhere you go. So you also have your own bank-teller. |
| Divisibility | Money must be easily divided into smaller units to allow for transactions of varying values and to make change. | The MergedCash App transposes its value to the value of a surrounding national currency enabling divisibility in the same way the national currency does. |
| Uniformity | All units of the same denomination of money should be identical in appearance and value. This prevents confusion and ensures that each unit has the same purchasing power. | MergedCash transposes its community value as the value of the surrounding national currency making its related value instantly recognizable |
| Limited Supply (Scarcity) | The supply of money must be limited and controlled to maintain its value. If money were too abundant, it would lose its purchasing power rapidly (inflation). Central banks typically manage the money supply. | The supply of MergedCash works vastly different from central-banks. One of the BIG problems of modern currencies is its INACCESSIBILITY to the majority of humanity. This increases poverty and makes the global economy highly unstable. Modern inflation is derived from the market's ability to SELL. But in the 1700s England had zero inflation for 100 years because it was regulated by people's ability to supply or demand gold or paper money to the banks. All the players in the economy must regulate inflation not just the best sellers. In order to achieve this MergedCash uses the 9 tools of memberships, active circulation, a community basket, ethical community achievements, no-monopolization, no-currency-debt, no-currency-savings, paper-currency-expiry and a parent-currency-inflation-adjuster to manage its supply. |
| Acceptability | For money to work, it must be widely accepted by people as a form of payment for goods and services, and for the repayment of debts. This acceptance is often backed by government declaration (legal tender). | MergedCash is not globally acceptable. It never wants to compete with national and global currencies. It may be a disadvantage but it's also an advantage. It can never leave its community. This makes unethical exchange less desirable because it has a more transparent and less exaggerated connection to local relationships. This enables crime prevention and is more effective against selling unethical products and services.
In order to solve global problems MergedCash can theoretically be subdivided into parent-child geographic spaces. |
| Fungibility | Individual units of money should be interchangeable. One dollar bill should be worth the same as any other dollar bill. This prevents the need to individually evaluate each unit of money. | As mentioned earlier the value of MergedCash is clearly identifiable by its relationship to its surrounding national currency. Yet it must not be exchanged for other currencies because it would defy the purpose of helping the poor gain more independence and a greater value for themselves needed to produce their own high-quality products and services.
We won't regulate private exchanges or generosity for money. But organizations in our networks must agree to abide by "no-exchange" apart from products and services. |
| Recognizability | Money should be easily identifiable and distinguishable from counterfeits. This builds trust and facilitates smooth transactions. | This also touches on security. MergedCash is not a cryptocurrency. It does not rely on anonymity and non-human-identification. It does make all transactions publicly verifiable but it does not irresposibly process transactions in a distributed fashion. Therefore it's also not vulnerable to related AI domination, non-human attacks, hyper-inflation, and crime-enablement.
That said, printed cash is verified with a unique QR code through a secure data-island. It can either be pulled into an account or simply scanned for further use. Every digital transaction has a sequence and an encrypted signature from a single source of truth that can not be reversed. This ledger is made openly available to all members as a download for safe-keeping and executing integrity checks. |
| Stability (of Value) | While related to limited supply, the value of money should remain relatively constant over time. Frequent or drastic fluctuations in value erode trust and hinder its functions as a store of value and unit of account. | MergedCash retains the purchasing power of its surrounding national currency. But it has no use unless its members produce, serve, and circulate locally. Also not if the community simply does not use it. This is where the trustworthiness of the unit-of-value, the service-provider and a shared system of values are critical. |