The world is moving to digital currencies. It is the future of money. In this new digital world, governments and corporations intend to track every transaction to supplement all the other information they collect about us. There are many reasons to be concerned about these developments. In this cashless society and the social credit system, anyone could be punished for not playing by the rules, including being completely banned from the system. Without access to this system, such a person would not even be able to beg for money on the street. And that is just one of many terrors of this dystopian nightmare that is awaiting us. It is unavoidable unless We The People create our own digital money. If not, we will lose our privacy and freedom.
What Is Money
Cryptocurrencies were created to compete against the fiat money. However, with over a decade after the invention of bitcoin, cryptocurrencies are no closer to producing functional money. Clearly, cryptocurrencies have a fundamental problem that prevents them from being adapted in the economy. The reason is that the cryptocurrency enthusiasts insist a cryptocurrency like bitcoin is money because it is a unit of account, a medium of exchange, and a store of value. While bitcoin undoubtedly has these properties, they are derivative properties, not definitional properties.
Money is defined by the relationship between money and goods, where: “Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt.” Money is a debt obligation, a type of security best-known as a note, such as the Federal Reserve Note. Since money is a security, and commerce requires securities to operate, explains why cryptocurrencies failed as money.
If debt is money and it is the type of money we have, then something else must be the problem, and if we don’t fix it, then switching to a different type of money by itself will not help.
The problem is that we have two economies. A productive economy that produces everything, and the unproductive economy of the financial sector that speculates in the financial markets. Money created for the productive economy is used to produce goods and services. While money created for the financial sector is used to extract money out of the productive economy. At the same time, the financial sector has expanded over the last 100 years from 5% of the GDP to over 50%. Moreover, the financial sector misuses the power of money creation for its own benefit. For example, the central banks are now using the QE program to rescue the banking system by creating enormous amounts of money at the expense to the productive economy.
If money were issued as debt to the productive economy, then there would be no such problems. But asking the financial sector to get out of the business of money is a nonstarter.
Axio Monetary System
The Axios Foundation is developing an independent monetary system based on diametrically opposite principles to the current system, such as public control and transparency for common good instead of secrets for private gains. It would be able to function within the global economy and able to compete against the fiat money. It would be a real revolution against the establishment, and it is already under way. It is called the Axio Monetary System.
The system will be operated by the Foundation in a similar way to a credit union, which is a financial cooperative controlled by its members as stakeholders, and operated on the principle of people helping people. The System will be based on a cryptocurrency called Axio that will be issued by the Foundation and will be held in accounts managed by the Foundation. All axios will be issued as Axio-denominated loans. Each Axio will be created as a loan and will be destroyed when it is paid out. This process of creation and destruction of the Axio will be secured with a blockchain. Consequently, the amount of Axio in circulation will be able to expand and contract in proportion to the demand for the Axio, while assuring that the Axio is fully backed by the full faith and credit of the borrowers. That is, the Axio will be directly backed by the intrinsic value of work that represents the real value rather than a by-product of work such as gold. And unlike commodity-backed cryptocurrencies that have a fractional reserve value, the Axio will be fully backed by the full faith and credit of the borrowers.
The System will include a bank, a currency exchange, and a dispute resolution system. These institutions will provide the minimum required to allow the Axio to function within the economy. The System will provide services such as payment methods that will support free real-time transactions, enabling the Axio to compete against other currencies. All this will give the Axio many advantages over other cryptocurrencies, including a stable intrinsic value that does not depend on other currencies or commodities, free real-time transactions paid for by the interest on loans, legal basis of a security issued under the law, in addition to many other advantages the Axio Monetary System will offer.
Backed by its own monetary system, the Axio can be thought of as a currency of a virtual country, and will be usable just like any other currency via a payment app or a credit card. The Foundation will support business transactions by providing a legal framework supported by dispute resolution. The ability to redress grievances will make the Axio similar to a government-issued legal tender, which is something that no other cryptocurrency can offer. With so much going for it, the Axio is positioned to become a dominant player in the race to create the next generation of money. As such, it has enormous potential.
We The People
The Axio Monetary System could provide a core of a new economy that would serve the people and resist the dystopian future that awaits us. To achieve this we need to pull together, we must seize this moment and act boldly to tackle the profound inequality created by the financial sector. Continuing with the status quo is not an option. Cryptocurrencies showed us the way. What remains is to use this technology to create a monetary system of the people, by the people, and for the people.
Make your choice!
Join the revolution!
For more information about the Axio Monetary System, please visit the Axios Foundation website. For an overview please refer to the Pitch Deck, with further information disclosed in the Blog, Whitepaper, Business Plan, Executive Summary and the Axio Token Terms of Sale.