Passive BIBO Currency Specification

 

Formal Passive BIBO Currency Specification

Copyright © bibocurrency.org updates 20/08/2014, 31/03/2015

Passive BIBO Currency: A Decentralised self-regulating robustly stable currency for the free and unimpeded evaluation of value in exchanges of Wealth between any number of individuals or economic entities

The specification herein is intended to satisfy a basic and simple set of requirements that are satisfied as per the corollaries of the system design/rules provided below. These in turn satisfy the higher level requirement of providing liquidity as a freely accessible technical money standard to ensure that, in a robust and dependable fashion, all and any transactions can be effected by any set of agents be they individuals or legal entities free of the inherent instability and systematic inequity of the current de facto standard. The other fundamental requirement of stability is satisfied by virtue of the system simply maintaining constant ratios between currency units annotated, wealth traded and debt liability, making the design of the system stable, transparent, objective and hence highly trustworthy.

The inherent property of stability that the Passive BIBO currency provides, precludes the requirement for any centralised control of "creation of units" as the system is by definition robustly stable, however this is not to say that as with any contract or agreement, enforcement of obligations may be required through existing social and legal governance infrastructures.  Since the specification is of a Passive currency,  it cannot be used to influence or otherwise determine or manipulate the creation or distribution of wealth in anyway so that any such governance is strictly the prerogative of individuals and their communities and as such is of independent scope to the requirement for “liquidity” or stability for that matter.

Finally, it is not possible that the system be subverted by for example the creation of counterfeit units, because units cannot be created unless as a direct function of real transactions requiring corresponding Debits and Credits to accounts of different identifiable users that must be authenticated.

For a description of the contrast between Passive BIBO Currency and the current de facto standard please refer to this document.

Definitions

@: The Symbol used to denote BIBO Currency denominated as @-Credits.                          

@-Reference Value: 1 @ represents the value of 1/10 of an unskilled human hour.

Account: A record of positive and negative entries of @ and the corresponding Balance resulting from @-Transactions of Wealth.

Balance: The net value of @ in an account at any given point of time. This value can be positive, null or negative.

Community: A set of two or more Members.

Credit: The adding to one's Balance of @'s resulting from delivering Wealth in a transaction.

Currency(aka money): Unit measure of value in economic exchanges.

Currency-System: A set of one or more Transactions adhering to particular rules and definitions that determine the behaviour of Balances in Accounts.

Debit: The subtracting of @ from one's Account Balance resulting from receiving Wealth in a Transaction.

Debt: A commitment vis-à-vis the Community resulting from a negative Balance, to continue delivering Wealth in the Future through Transactions Accounted in @ until the Balance is no longer negative.

Input:  Aggregate value of Currency System Wealth in Transaction measured in Currency.

Member: Any uniquely identifiable human or group of humans holding one or more Accounts in @.

Output: Aggregate Currency System Debt.

Passive BIBO Currency: A Currency system where the absolute value of the sum of outstanding Debits is less than or equal to the sum of input Prices.

Price (Input): The number of @ recorded in Accounts representing the Value of Wealth in any given Transaction.

System Balance:  The sum of unreciprocated value in the system, note this balance is either negative or zero never positive.

Transaction: The process by which Wealth is transferred and Accounted for in a finite sum of @ resulting in a Credit to the provider of the Wealth and a Debit of equal magnitude to the receiver(s) of wealth.

Wealth: Any discretely measurable goods and services whose value can be transferred between two or more parties.

Rules

  1. There is an unlimited supply of @.
  2. @ may only come into use as the direct result of representing Debits and Credits in Transactions.
  3. A Member may open and hold one or more Accounts in @.
  4. A Member may close an Account in @ provided the balance is null.
  5. An Account may exist without an Account holder (i.e. a deceased member’s account).
  6. All @ Member Account Balances as well as the System Balance are public.
  7. All Transaction details are private (unless required to be divulged by law).
  8. Any consenting Member has the right to freely partake in any Transaction of Wealth denominated in @.
  9. A Member is free to deny performing a Transaction with another Member.
  10. The Price in @ of the Wealth in a given Transaction can only be determined by Members who are parties to the Transaction.
  11. A Transaction may involve any number of Members.
  12. @ are equally available to any Member at any time.
  13. @ may not be the object of @ transactions.
  14. @ may be donated.
  15. Wealth is represented in Transactions only as positive @ numbers (i.e. you may not buy wealth by adding a debt to the seller).
  16. No function may be applied to any Balance other than subtraction and addition.
  17. No entity may operate on the BIBO-Currency other than as within these rules.
  18. All goods and services must be priced independently, e.g. Passive BIBO Currency rates cannot be charged as a percentage of the Price of transacted goods and services, but rather the charge must be related to the cost of service delivery such as periodic account maintenance charge and/or charges per manual processes (e.g. hand written cheque clearance).

Corollaries

  1. BIBO-Currency is a Stable System because both Input and Output have bounded values.
  2. BIBO-Currency is a Passive System because Output never exceeds Input.
  3. The BIBO-Currency is inert as it has no effect on the creation of Wealth, i.e. its use cannot deter or provoke the creation of Wealth.
  4. No side of any Transaction may derive an advantage over the other by virtue of availability of @
  5. Magnitude of @ Debits at all times is equal to those of @ Credits.
  6. No Member can exercise control over access or use of @ by other Members.
  7. Both sides of any Transaction have equal and opposite influence over Price in terms of availability of the @.
  8. All Transactions in @ are fully voluntary and free of any coercion.
  9. Creation and transfer of Wealth does not depend on @ but rather use of @ depends on previous existence of Wealth.
  10. The sum of all existing Balances equals zero at all times.
  11. @ cannot be counterfeited as only @s resulting from Transactions are recognised and each Transaction must Debit and Credit Balances of distinct authenticated Members.

Additional information