The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective
Complementary Currency Systems Bridging Communities : Proceedings of 6th Biennial RAMICS Congress, 27-29 October, 2022, University of National and World Economy, Sofia, Bulgaria
The tree diagram of evolution of money shows that material money (commodity money) and credit money (debt money) independently emerged and evolved in parallel as external money, and that there was diversity of money and exchange according to the counterpart and the sphere of circulation. Modern fiat money without redemption obligations has still been recorded as debt on the balance sheet of the central bank after the introduction of the floating exchange rate system in 1973, however, it can no longer be conceived as credit money as a debt instrument. Given this reality, it is appropriate to regard them as securities or utility tokens and record them as equity/ capital on the balance sheet. Doing so is expected to have the effect of reducing the risk of insolvency of the central bank and promoting a change in the cognitive and behavioural rules (internal institutions) of economic agents so that it can provide more stability with a global financial system. The fundamental problem is that modern legal tender is neither material money nor credit money, but a third type of money, i.e. 'ideational money' or 'symbolic money', which is established and maintained as the self-realisation of two ideas, 'past customs' and 'future expectations', and this is the common nature of modern money,
including community currencies and cryptocurrencies. Currently, communities (including nations and regions) that share different ideas and symbols are diversifying due to digitalisation and online access. The emergence of a situation of multiple belonging of individuals to communities has led to the diversification of private currencies such as cryptocurrencies and community currencies, which have different names, different standards of exchange and different spheres of circulation with non-fixed exchange rates, promoting what Hayek calls the 'denationalisation
of money'. There, instead of quantitative competition based on Gresham's Law ('bad money drives out good'), qualitative competition based on the principle of choice in currency ('good money drives out bad') operates, and the characteristics of 'good money' other than stable monetary value are created and discovered through monopolistic competition for money.
Nishibe, M. The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective. Sofia: Monetary and Economic Research Center /MRC/, 2023 381-400,.
Nishibe, M. The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective. Sofia: Monetary and Economic Research Center /MRC/, 2023 381-400,.
Nishibe, M. (2023) The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective, Sofia: Monetary and Economic Research Center /MRC/ 381-400,.
Nishibe, M. (2023). The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective. Sofia: Monetary and Economic Research Center /MRC/, 381-400.
Nishibe M. The Nature of Modern Money as "Ideational Money" that Diversifies as Private Money such as Community Currencies and Cryptocurrencies - in View of Evolutionary Perspective. Sofia: Monetary and Economic Research Center /MRC/; 2023. p. 381-400.
