Is there a value play or logic in using regulated, fiat money? The arguments for the use and role of money, a physical or digital representation of the value of one’s wealth or work, are plausible. It would be disingenuous to say that society should go back to a bartering system for exchanging goods and services given the consequences of impaired logistics and issues surrounding the storage of the items kept in reserve for bartering. However, I believe a crucial question regarding the definition of money needs to be revisited in order to bring certainty into trade and the value of the items we trade for.
I see money as private. Money started out as private and should go back to that status. The only reason humans engage is to trade value and as a medium for trade between private individuals, money itself should be private. Money should reflect the energy, intellect, data, commercial value, and knowledge of the individual who generates it and issues it. Fiat currency relegates the common consumer to regulated markets that may or may not meet a consumer’s need for certain goods, services, or privacy. And poor monetary policy by the issuers of fiat currencies are only leading to a devalued currency that lays at the core of inflated consumer prices.
As much as we tout competition in American society, this is where American government, a mechanism employed by American society to ensure the smooth flow of commerce, should be forced to compete with alternative payment systems. Traders should promote the use and acceptance of alternative payment systems and currencies by multiple vendors. Traders should also advocate for the exchange of alternative and fiat currencies where such exchanges reflect the necessity to engage in trade on alternative platforms or purchase goods and services that are only offered on alternative platforms.
For example, a consumer may purchase food and clothing items from a digital Walmart or Amazon store, but can only afford the police protection services offered by state or federal governments. An end-user may, like today’s central banks, maintain her own portfolio of “reserve currencies” for use on numerous platforms.
Expanding the payment system scheme can also make government more efficient by requiring government to expend resources on the activities it is most expert at and leaving other activities to the private corporate sector.
The concept of “government” is not going away. The concept can be refined and one ideal way is to have it co-exist with alternative payment systems.
19 April 2022
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Disclaimer: The above is provided for informational purposes and should not be construed as financial or legal advice or as creating an agreement to provide financial or legal advice.