Digital Dollar Consequences

Before getting on with examining my Digital Dollar Monetary system in terms of the Communications System on e of the consequences of modeling the monetary system on the communication system is that all information in and about the communication system can be known.  All information in and about the money system can therefore be known.

However, all information of the monetary system is now passed over the communication system!

The government has access to everything passing over the communication system which is our packet switching network.  With appropriate authority that can know anything passing over that network.  If what is passed is drawn off that communication network is stored then there is a history of communication information that can be accessed.

What is true of general information transmitted in the current communication network today is true of the subclass of money information transmitted today in the same network.  That same information would continue to be transmitted with no difference in what and how it is actually done now if the new system that I propose is implemented.

What would be the big difference in the system I propose?

The big difference may be (if it works this way)  that M2 money as a medium of exchange information passing over the communication network.............

Is Not:

Addressed as it is now to hundreds of millions of accounts distributed among the more than 9,500 members of the Federal Reserve System  and their chosen software systems (the 40 biggest ones examined in my blog entry here) operating on their own individual servers that process the transactions..........

But Is:

Addressed to one single repository/depository collectively holding all the M2 money in the system and the identities of all the owners of that money at any given instant of time and making real time changes to that ownership among all the private and business financial entities in our financial system on a single server.   That single server then tells the 9,500 primary Federal Reserve Bank members the information necessary to change the bank accounts of their customers.  (If, in fact that is the way works?..!)

I don't really know how it really works, just making a best guess at how it works but if I beat this bush enough I can figure it out.

This is my learning process.  an iterative process that gets ever closer to understanding what is really going on......

For all I know, all M2 money supply transactions might currently go to initially a central clearing house single processing center that sorts out all the transactions based on some criteria, performs interbank transfers in advance of the bank actually changing the customer account by netting all changes to a bottom line that changes the bank's central account at the Federal Reserve then passes the transactions to the related bank (or other place they should go) where banks holding the "from and to" accounts do the bookkeeping.

That might be an efficient, if not an alternate way of running the financial railroad.  Net changes computed by the Fed for transfers among banks would have to balance the account changes made by the banks.  That could be true and done as long as the time frame selected could encompass the process at both the clearing house and the member bank.  High Frequency trading in mili-seconds seems to tell me this is possible.

The question is: What are clearing houses clearing?  Where are they in the clearing process.....upstream or downstream of the member bank.  Up or down determining who gets the M2 money transaction first in the processing chain of events.

If some entity wanted Total Information about M2 money (who has it, who gave it to them and who did they give it to) then the best system to provide that information would be a single central source.  That source would record all transactions of M2 money at the most granular possible level which is not the account the money is in but the discrete uniquely serialized units of money owned by all users of the system.   In this system, the M2 Digital Dollar serialized unit is fixed and the account is variable.    If the Digital Dollar (DD) serialized units chosen to pay money (change old DD unit owner to new DD unit owner) to meet the total payment amount requirement were chosen at random from all  DD units owned by the payer then each unit would be historically associated with each and all previous owners.  This would provide a total payment amount having a statistical historical sample of a chain of prior ownership.  Information becomes knowledge when "follow the money" is analyzed in an investigation or used for whatever other reasons that may be of value to whoever has the ability or authority to know the information.

In my proposed DD system the wealth of information for economic management control of the M2 money supply and beyond that everything that is a derivative of it would be immense.  So would the amount of information available to fight crime, including fraud.  The value and power of this information that does not exist today because it is either hard to get or not a product of the money system is enormous.

It is like nuclear power.............that is the nature of information at this magnitude as well as energy.