Banking updates
This is a somewhat stream of consciousness set of notes/changes I need to make to the paper that I write down as I think of them.
See comments for even more strream of consciousness.
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Transfers between members in different regions. Would banks send the backing capital on behalf of the members? If I send frank 10 credits and both banks have a 1:1 peg, then would my bank send Frank's bank $10? I would think so. If one of the banks did not peg the currency, then the amount transferred would reflect the conversion rate (derived via formula in the paper in the banking section, which still holds). -
If one banks credit-to-dollar ratio differs from another one's then overall the "credit" as a currency is fractured. I think this is a weakness of the system. Now thinking that the credit's exchange value should beSee #88 for a more in-depth discussion of peggingsum_of_all_regional_bank_capital / sum_of_all_systemic_active_credits
. This gives the currency an equal value across all regions.- If I get paid in a region that has no money (let's say I'm the first member of a region, and a remote worker), then my local bank (if it exists) cannot honor my credits and exchange them. This is starting to speak for the need of a systemic bank. This creates all kinds of questions about centralization/allocations, though.
Edited by andrew