The prisoner money business has gotten some recent attention. This link reports 10 Oct. about Bank of America involvement and the Treasury Dept.
My prior blog entry examined stored value cards and US Treasury programs involving stored value cards for the military. Examination of that went on to look at other "captive audience" stored value card applications with the discovery of how they apply to the prison system and who are the big players. Behind all this is the question how do these stored value monetary systems relate to a bigger picture that might use a "Captive Audience" as a lab for application experimentation that could scale to broader application????
Relate to this question ending the previous paragraph: What is the possible role of Apple Pay and its ability to be a front end device for a "Stored Value Card" system that would need neither a clearing house function nor a bank account. In effect it would be a digital dollar bill system for peer to peer payment. The only difference between that possible system and buying a candy bar with a dollar bill is.......what? Nothing really except that secure digital data changes ownership instead of a dollar bill??? How simple could a monetary system be? Furthermore, might this system be based on a debt free digital dollar as the medium of exchange?
Bottom line speculation: Might this lead to a debt free "small money" medium of exchange monetary system? Money with no counter party owning the debt asset that balances the liability of the liability debt created by the banking system creating money out of nothing to exist as a balance sheet relationship?
Wild speculation indeed.
Who or what entity is the "asset holding counter party" for a Stored Value Card. While it is called a "Stored Value Card" The "Card" is simply the physical device connecting to the logical value that it stores. Exactly the same as a dollar bill being the physical device connecting to the logical value that it stores. The big, the biggest, difference is that a physical dollar bill cannot be separated from its logical value unless it is used to light a cigar. Then that value becomes nothing. A Stored Value Card has a physical property that is independent of its logical property. A "Card" with this property is no different from any other physical device that can also store a logical value and process it independent of the physical medium to which it is related.
The "Card" could be an iPhone and Apple Pay. At first look, Apple Pay is related to Credit Card processing. Just a simply front end way of using a credit card with a few additional security measures and efficiency of processing benefits. However, if Apple Pay has the inherent ability built into is to be independent of the credit card money system to by pass the credit clearing house/banking system then there is some opportunity for a revolutionary monetary system to emerge.
The military and the prison system. What do they have in common? Highly controlled populations with discretely defined and identified members. What other populations are like them? Populations receiving government payments. Single source payer in a tightly controlled domain.
Here is another captive audience domain: Students. Here is a solicitation for bidding on a university stored value card for students. The California State University, Fullerton uses a Titan Card as a student ID as well as a stored value card. Interesting to combine ID with a payment system. Terms and conditions of the card are at this link.
Lots of speculation here. Bank of American and other major financial institutions like US Treasury the are very interested in this money domain. So are big tech players that are generally viewed as players outside of the defined financial system. Why? What is going on here? Something big?
What is the writing on the wall? Shadows on the wall?
What exactly is a "Stored Value Card" and its relationship to the debt money banking system. Is it an entity that once given birth there is an umbilical cord that can be cut to give it debt free independence from a balance sheet existence that ultimately returns it to the "out of thin air nothing" from which it was born when debt is repaid to the holder of the debt asset to extinguish the debt?
Easy to answer. Identify the counter party holding the asset value content of a "Stored Value Device". The asset owner that has the right to sell the value of that asset and/or its stream of revenue.
Who dat?
The answer is a simple as drawing the conceptual design of how money is created in the Stored Value Card (Device) system and if it is created in a debt based monetary system then what is the possibility that it could be created in a debt free monetary system in a manner that would be transparent to the the system users....meaning the general public.
Follow the money............This is a fascinating concept to examine. Why are big players appearing to be scrambling to get involved in it. Is there any fire beneath all this smoke and mirror money stuff?
This entire blog, 2 Dollar Jefferson was based on the question "What is Money". The blog is mostly a display of my ignorance to find an answer that satisfies me. Medium of exchange. Store of value. All based on a debt money system. I can see, dimly, debt as a medium of exchange. Store of Value? Maybe that is the concept of money that related more to debt free money than the medium of exchange concept that relates more to debt?
Charge on Don Quixote gallantly to tilt at the windmill of money. Cling to the belief that it really is a Super Class Object thing with its own properties of being and methods of implementing them rather than a passing figment of imagination that is only a relationship between the eternal creation and extinction of a debit and a credit that are properties of a Super Class Object called Account.
The military and the prison system. Two of the most authoritarian test bed systems in which to test a monetary system. What does that say about system control?
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