We've looked at an ideal solution, #TheInternetOfValue, at a macro, micro, and individual level. Now we see how the rich data set that we've arrived t with the wellbeing score be used for unlocking financial services.
Ideal Identity - Refresher.
- Demography
- HardSkill
- SoftSkills
- Virtues
- Wellbeing Score that is based on physiology, emotions, feelings, thoughts, habits, and performance.
Score owned by the individual validated by the community makes it a base for #DeFi
The question we are exploring is can we use this well-being score to give credit to individuals. Any historical precedence for this ? of course we have and from an unsuspecting source, Hitler in Germany. 3 #Hitler rose to power, in Jan 1933 & this was Germany's economic situation
- Stocks of raw materials had been depleted
- factories and warehouses lay empty
- 6.5 million people (~25% of workforce) unemployed
- Crushed by debt & its foreign exchange reserves approached 0
17 March 1933, Hjalmar #Schacht was appointed President of the #Reichsbank. Schacht had previously helped to bring Germany out of the crisis in 1923 & was a well-respected banker. His appointment calmed people fearing the radical Nazis and gave hope to the business community
What'll you do, you can't borrow money as you already have mounting debt and can't print money (inflationary). In 1932, previous president of #Reichbank rediscounted Öffa bills/job-creation bills / promissory notes by the German Society for Public Works to fund public works
#Schacht extended this to Metallurgy through MEFO bills. Here's the magic. #ProofOfWork - Each bill stood against the sale of newly-produced goods, and each issue of money was based on the exchange of the new goods.
The employees of MEFO checked that every MEFO-bill issued was tied to a quantity of newly-produced goods, and only bills issued against the sales of these goods were granted. This way, the circulation of money and the circulation of goods remained in equilibrium #ProofOfWork
Bills to Money: The Reichsbank accepted on demand all MEFO bills, irrespective of their size, number, and due date, and exchange them for money. The bills were discounted at a 4% interest rate. Thus the bills were given the character of interest-bearing money, and banks, savings banks, and firms could hold and use them exactly as if they were money. Here's the catch. If all MEFO bills had been presented for a discount at once, inflation would have resulted. But this did not happen - making the bills both re-discountable and interest-bearing allowed for much of them to be absorbed by the market without going through the Reichsbank. #Decentralization.
Results? State purchases fed into a growing demand for labour, and firms restarted investments using MEFO-bills as collateral for borrowing. Investments put additional manpower to work, and incomes and savings increased as a result, raising fiscal revenues.
It enabled a national economy to exit a long and deep depression and to attain non-inflationary full employment in a short span and with no use of price controls or rationing. In only five years, Schacht’s program transformed a bankrupt state into Europe’s strongest economy
what can we learn from this? Individuals can be given credit (tokens) to get better at their skills so they can leverage the projects and gigs from the community with the wellbeing score as the leverage. Individuals submit work to redeem the tokens
In Germany's case it was the state that backed these bills and gave credibility. In our thought series the community will be those institutions this #communitybank is formed
lets see if there is any historical precedence of coops / communities have acted as banks. An example of a cooperative issuing “money” is the Swiss WIR, created in 1934 (during the Depression) by a cooperative of local businesses and landholders
WIR is a cooperative association of small to medium size, independent Swiss businesses for the purpose of mobilizing their own credit potentialities, i.e., without using commercial banks as intermediaries, to facilitate business transactions within their own circle.
This arrangement prevents, or at least inhibits, the outflow of capital and profits to the large chain stores, department stores, stock corporations, etc. WIR credit can be described as supplementary, low-cost credit with a goal of increasing the business of their members
As a self-help measure, it appears to have been successful in large measure in protecting the small, independent businessman against the constantly increasing pressure from large, financially strong competitors. The WIR Cooperative has been in existence since 1934.
If you're thinking this works only in the white-collar segment in developed nations you are wrong. Let's check out India. SEWA - Self Employed Women's Association of India has a whopping 1.8 million members with its own bank./ At a SEWA members’ meeting at Naranghat in December 1973, Chandaben, a used garment dealer from Poori Bazar, asked me, “Ben, why can’t we have our own bank?”
Bank shares were 10 rupees each. Within six months, the initial share capital of 71,320 rupees was collected from 6,287 members. Shri Mahila SEWA Sahakari Bank Ltd. or the SEWA Women’s Cooperative Bank was established on May 20, 1974. 23 Mission of the SEWA Bank Credit must further the productive and earning capabilities of the poor self-employed women. It'll adopt procedures and design schemes suitable to women like collecting daily savings from their homes, assist with loans and savings productive
We've seen 3 case studies of labour backed banking:
- State- Germany had adopted #proofofwork (literal, not a SHA256 algorithm)
- Market - Rich Businessmen coming together to form a coop bank - WIR -Swiss
- Coop - In India a women collective becoming a bank
With limited to no technology if these initiatives succeeded it's our moral responsibility to try it out when our wellbeing/reputation score of an individual can have a richer data set for fraud detection and risk analysis. #CommunityBank to a #HumanStockExchange
Too farfetched? Let’s see what the fiction world holds. Art mimics reality, right?
the opening episode of H.$.E presents us a crisis-laden world members of the social elite can have themselves listed on the stock market. (europecomics.com/album/human-st…)
Lets get to reality? ok NewNew and @clout_market aren't selling skilled work. You don't buy a painting or an essay or even personal access. You buy a piece — directional or representational — of the person's life. (theweek.com/articles/97158…) 28 "a creator can use NewNew to post a poll asking which sweater they should wear today, or who they should hang out with, and where they should go. Fans purchase voting power on NewNew's platform to participate in the polls, and with enough voting power, they get to watch "
Like how the Porn industry is the first to adopt most tech innovations this trend of buying tokens to influence the lives of real influencers is just the beginning. #HumanStockMarket will be a reality soon. Will it be used to nudge the wellbeing of individuals through communities by making them participate in skilling and projects or use for polls on what panties to wear is the biggest question facing us all. Ciya tomorrow with the final chapter on organizational structure.