Big thanks to Ken Lynch of SCC Bank and the Carbon Coin project for a wide ranging discussion on currency. There were several key points from the meeting, below is what I remember. To all the currency experts out there, feel free to correct me in comments.
-The overarching theme was that monetary systems change over time and that it’s likely we’ll see change in our lifetime, perhaps a big one.
-One change that can be seen over time is a fluctuation between use of the dominant currency and community currencies. When times are tough, community currencies come into vogue. When times are good, the dominant currency gains in dominance. However, the long-term trend is toward fewer currencies. We may be moving toward a monetary mono-culture.
-That there are advantages to a central bank and currency and disadvantages. And the same with complementary currencies. It all depends what kind of society you want. A central bank and currency makes trade easier, but seems to concentrates power into a small number of hands. Community currencies may be more economically democratic but can make trade between communities difficult.
-That governments or central banks tend to degrade their currency over time as they accumulate more debt, or something like that. An example is that the U.S. went of the gold standard in the 70s so that paper money had absolutely no intrinsic value except the trust we put in it.
We didn’t get as much time for discussion as we normally do, but the conversation did continue well into the evening when we moved it to the 21st Amendment. And it was great to see the co-founders of Abundance League, Scott Levkoff and Polly Whitaker, who brought their inspiring vibe to the experience.
MARK YOUR CALENDARS
The next meeting is August 20th. Check out meeting details here.
