Continuing from the prior post which concluded that the model I propose defining what debt free digital money is opens up the door for a multitude of things digital money can do.
All uniquely serialized digital dollars with a value of one exist in a single virtual repository to simplify the model. (sliced and diced physically and virtually for whatever reasons that provide systemic integrity)
There are 10 trillion dollars in the repository. It is the nations digital spending money called US Dollars. The medium of exchange of the USA to buy/sell and use as legal tender for settling debts. Every single dollar is related to a single unique account that currently "owns" it. The registered owner of that account is the owner of each and every unique digital dollar in the repository that is associated with that unique user account identifier.
The National Currency Digital Dollar Repository Custodian is responsible for the custody and security of all Digital Dollars and responsible for the system operations that change account ownership of Digital Dollars held in the Repository . (Delightfully located at Fort Knox) Between the User and their Digital Dollars in the repository is a Account Administrator that provides accounting clearance services necessary for medium of exchange transactions. These services include receiving as a central processing point all transactions from Monetary System Accounting entities and passing up to the Repository all account transaction information necessary to change ownership of Digital Dollars in the Repository. The Account Administrator is also responsible for passing down confirmation to the appropriate Monetary System Accounting entities necessary to update their account on hand balances. The National Money System Account Administrator is the sole government chartered clearing house entity and subject to rules, regulations and operation in accordance with applicable laws. This opens the door for free private enterprise to compete to provide Monetary System Accounting services to Users and reporting account transactions the N. Unless they deal only in paper currency and coins all Users must have a relationship with a Monetary System Accounting entity of their choice that maintains their digital cash accounts with on hand balances and forwards/receives total individual account transaction amounts from the Account Administrator for application to the user account.
Total amount of dollars owned by an account in the Digital Dollar repository always equals the total on hand balance in the account held by a User's Monetary System Accounting Service.
Clearing House attributes and behaviors were examined in a prior blog post here.
All this is Open Source by the way as examined in prior blog post here.
In this model the Monetary System Accounting entity could issue money under its own private label name subject to rules of the Account Administrator (the Fed, or what is left of it since all this is debt free money?). It could do so on a dollar for "dollar name of their choice" similar to the customer reward and loyalty programs that provide for any entity to put their name on a Master Card or Visa. American Express Sucks. Essentially they are US Dollars by a different name associated to value added services of a Monetary System Accounting entity. Because the "base money" is at the Repository all privately branded dollars are freely exchangeable with any other privately branded dollars at par value.
The Monetary System Accounting entity may also provide loan and credit services but those services are subject to contractual agreements with the User Customer and the source of loans is Debt Free Digital Dollars existing in the owning account of the Accounting entity itself. (it is probably money that was previously held in the owning account of an investor with a contractual relationship with the Monetary System Accounting Entity or maybe the personal money of the Accounting entity itself).
Ripple would benefit from this model, so might Apple, Google, Paypal.
Let the market competition begin!
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