This was conceptualized by me on a bored Saturday morning; it is a crazy idea but well who knows it could be feasible.
So I have been reading quiet a lot on the economics of money creation backed by items of intrinsic value such as gold, and the more I read, the more I realize that the dynamics that creates such value is tied around perception, and trust. This is what created the basis of my crazy complex idea of a creation of a global bureau de change of digital currencies backed by each Franchisors funding with a digital clearing-house powered by a community of rated commission based volunteers in every country and state across the globe.
Taking a glimpse at online payment methods such as paypal, moneybookers, libertyreserve along with many other methods of online payments that are backed by either the founder’s funding or models in developing countries or third world countries, a sub-market or rather a black market with millions of dollars in turnover on a yearly basis currently exist. This is a market where digital exchanges occur using other networks such as interbank transfer, monetary transfer or other digital currency to facilitate private exchanges of this digital currencies. This model is supported by local exchangers who facilitate easy withdrawals, easy conversion of local currencies to digital currencies to enable these methods of payment or gateways in the respective uncovered markets.This is alarming cos this by default goes against the policies of this exchangers yet this exchanges still occur at a risk of the exchanger loosing their accounts with paypal for example.
In some countries in Asia like Malaysia, Indonesia, Singapore or even in Africa like Ghana, Cameroon, Nigeria, there exist a form of a community of approved exchangers with a moderator that provides a sense of security through taking identities of the exchangers and providing a badge to this exchangers to assure interested buyers and sellers.
So looking at all this artificial black markets created by needs of the stakeholders in this respective markets, there is a huge global market for a digital currency backed by communities and interlinked by local forms of payments such as internet banking, mobile virtual accounts etc.
Establishing a community of global citizens with a platform that enables Open Payment backed by a very functional portal with Web Services together with a clearinghouse that is backed and supported by franchisee’s across the globe.
Each Master Franchisee enrolls in their respective location via supporting the system through the amount of money they are able to back the system with.
In each state there would be a corporation otherwise known as a Master Franchisee who is also an investor in the system, who would manage the clearinghouse and be responsible in taking care of local disputes and manage the sub franchisees legal matters etc.
This entire model would work on a social networking platform that would be managed by a trustee of elected Master Franchisee from each country across the globe.
The open payment system would be developed by open source developers ground up with an integrated marketplace for modular services. The core would be open-source, but the add-on services would be an income source for other contributors across the globe.
The core would facilitate the exchange, gateway and the necessary pillar to enable other systems and services to embed into it.
How would Monetary Exchange Occur?
This system would work in two ways through the Payment Gateway system and through the Community Social Portal. This is done first through loading the e-account with funding through any available franchisees in each state via whatever local pre-existing gateway available, such as interbank transfers, credit cards, mobile payments etc
Visiting a shop or a portal that accepts the open payment gateway and using the balance for the transaction.
Withdrawing and loading of the system is handled by local Franchisee with variable transaction fees based on services rendered.
The beauty about this open payment system is with time; the value of the digital currency could fluctuate based on demand and supply together with the availability of many franchisees and virtual bureau de change. The members of the community of the system would be able to build other sub services that depend on the Open Payment system, through the usage of the Developer Tools and APIs etc to facilitate the local exchange and global network of exchange etc.
The code base of the open payment system would be open-source but would encourage a modular add-on services, which would be protected by the developer using standard encryption enabled by the core of the system.
Who would make a living out of this?
Security Franchisee – Local security experts who charge for monitoring local transactions, verifications, legal matters and reselling their integrated module services to other franchisees across the globe.
Cross Border Franchisee – Local facilitator services of cross border monetary transfer that facilitate clearing house exchange of money from country to country, through either having foreign bank accounts to support foreign trades or have an easy method of transferring money across the border.
Merchants – Merchants that accept money using this system at zero transaction cost.
Exchange Franchisee – Local exchangers that provide local funding and withdrawals through available local gateways etc.
Entrepreneurs – Local entrepreneurs that can create a business around this system to enhance its functionality
The Big Picture
Picture a global open market of digital currency exchangers where you and I can earn from through providing funds to back it like forex trading, and also products and services without bank hiccups and high transaction fees?
Picture a global open market of digital currency, which is supported and managed by you and I without government intervention?
Picture a global open market of digital currency, which supports cross border trading by your investment and your time?
Picture a global open market where you can transfer money to anybody anywhere across the globe within a few seconds.
Picture a global open market of digital currency managed, and supported by you. You pay for the nodes you use, you contribute your codes to the repository that enhances the functionalities and you support your local market through ensuring that every player is verified and all transactions are monitored.
Picture a global open market that has credit ratings, and even credits to facilitate transactions?
Is this a great idea? Or an Idea that sounds nice theoretically but impractical? Or is this a Utopia Payment Idea?
I believe this system is possible through crowd sourcing and a sound franchise and network marketing model and could be polished, as this is just an abstract of the idea. Any Takers?
Please Contribute through your comments.