Comment by EGreg
6 hours ago
This is what a lot of people get wrong. Money doesn’t have to have liabilities, only fiat currencies do. Commodity money eg gold or silver are valuable in and of themselves, for instance. The government sues signiorage there.
However, individual liabilities are a great way to introduce currencies into circulation. Start with eg loyalty points at a restaurant or credits redeemable aboard a ship etc. We are working on that: https://community.intercoin.app/t/local-community-currencies...
A city can skip all that and just issue a UBI to all its citizens in its own currency, and start accepting taxes and fees in that currency. Read this: https://community.intercoin.app/t/rolling-out-voluntary-basi...
All money ever has had an associated liability. Commodity money absolutely relied on the face value as the basis of the commodity value. Any metal/face value disparity could lead to cross border arbitrage (making use of counterfeiting), but intrinsic to the process is the associated liability of the issuer. Otherwise you're just trading assets.