Complementary Currency Innovation: Self-guarantee in Peer-to-Peer Currencies
Submitted by blietaer on January 19, 2010 – 1:16 pmNo Comment
The WAT system, as used in Japan, allows for businesses to issue their own tickets (IOU’s) which can circulate as a complementary currency within a community. In this paper, Bernard Lietaer and Mitra Ardron propose a variation on that model, where the issuer of a ticket can offer a guarantee, in the form of some goods or services. The difference in value, along with a reasonable acceptance that the issuer is capable of delivering the service or goods, allows for a higher degree of confidence in the ticket, and therefore a greater liquidity.
