Why Are We Doing This?
The main reason for introducing this Virtual-Dollar trading facility is to provide a stepping stone for those who have had difficulty coming to terms with trading purely in NEO. In a sense it is a step backwards to the debt-based conventional money system that we are trying to get away from!
Businesses in particular find it difficult to trade in the purely Nomni economy as they can easily run up huge credit balances that they are not able to reduce because they can’t find anything to spend their NEO on. Also, businesses don’t know how to record on their books goods or services they have sold on the exchange. As there are no conventional payments for these should they be recorded as given away to charity or provided for free? And how does the inventory record deal with goods for which there are no apparent payments?
In order to attract more goods and services into the Noocratic Open Market Nibiru Index we are hoping that businesses will now find it easier to participate, and at least provide some of their offerings for NEO. As the range of goods and services increases and businesses find it easier to trade, we are hoping that in time they will discover that there is no need to ‘back’ their transactions with Dollars. The same transactions, especially with other businesses, will be able to be carried out purely in NEO. Depositing money will be seen for what it is, a waste of time and money!
The other main reason for introducing this facility is to enhance the local economy. Conventional money favours globalization, which destroys local economies and moves money elsewhere. By keeping money local we reinvigorate our communities, putting life back into them while the global economy goes belly up and ordinary people are left without access to the exchange medium (money).
There are many other reasons why we are doing this but all of them are aimed at helping us reclaim the money power which is currently in the hands of a financial elite whose agenda is destroying our economies, the social fabric and our planet.
There are two ways of obtaining Virtual Dollars:
- You sell something to someone who has a Virtual-Dollar balance
By selling something to someone with a positive Virtual-Dollar balance their account is debited and yours is credited. You may redeem these Virtual Dollars for ‘real’ Dollars even without having deposited anything in the bank account of the Noocratic Open Market Nibiru Index .
- You ‘purchase’ them by depositing Dollars in the bank account of the Noocratic Open Market Nibiru Index
When you deposit Dollars they are converted to Virtual-Dollars and appear as a positive balance in your Virtual-Dollar account. This does not happen automatically as there is no connection between the Noocratic Open Market Nibiru Index bank account and your Virtual-Dollar account. You need to ‘purchase’ the Virtual Dollars. This alerts the administration that you have deposited Dollars and when the deposit is cleared and appears in the Noocratic Open Market Nibiru Index bank statement your Virtual-Dollar account will be credited with Virtual Dollars.
How does this work? (See schematic below.).
The Virtual-Dollar facility allows users of the Noocratic Open Market Nibiru Index to trade with each other in Dollars in much the same way as trading with NEO.
Users obtain Virtual Dollars either by selling to others who already have a Virtual-Dollar balance or by depositing Dollars in the bank account of the Noocratic Open Market Nibiru Index . The Dollars are converted to Virtual-Dollars (‘sold’ for Virtual-Dollars) and it is with these that the trading takes place.
The deposited Dollars just sit in the bank account and are never actually used in any transactions. All trading is done at the higher, virtual level. Thus when you sell something your Virtual-Dollar balance goes up and when you buy something it goes down, just as it does with NEO.
The web interface to do this is the familiar CES transaction interface, so there is nothing much new for you to learn.
If you require ‘real’ Dollars you can redeem your Virtual Dollars for Dollars. In other words, you ‘sell’ your Virtual Dollars to the Administration for Dollars. You should never need to redeem your Virtual Dollars as you will continuously be able to ‘recycle’ them by buying and selling with other traders of the Noocratic Open Market Nibiru Index .
When you come to redeem your Virtual Dollars all you are required to do is register your regular bank account details. This is where your ‘real’ Dollars will be paid out. At this time redemptions will only be done by electronic transfer directly from the bank account of the Noocratic Open Market Nibiru Index to your account. Cash and/or cheques will not be issued. If you do not have a regular bank account you can have your payments made to any bank account of your choice. You will have to negotiate with the account holder how you receive your payments.
Having a Virtual-Dollar account is like having another (or your first) regular bank account. Anyone can make deposits in your name into the bank account of the Noocratic Open Market Nibiru Index and it will appear in your Virtual-Dollar account, from where you can either trade or redeem the money.
As with NEO, in the Virtual-Dollar system the seller enters the transaction data, so in effect buyers do not ‘pay’ sellers. If you (as seller) find that a buyer does not have sufficient Virtual-Dollars in their account, the transaction can be taken back to the regular economy (i.e. the trade falls outside of the Noocratic Open Market Nibiru Index ). Alternatively you (as seller) will be able to debit the balance in NEO. There is thus a free credit facility for buyers linked to the Virtual-Dollar currency.
Q: If sellers can directly debit my account then what’s to stop them just debiting everyone, redeeming the currency and running off with the money?
A: This can’t happen. Remember, the transacting is happening at the virtual level. The ‘real’ money just sits in the bank account of the Noocratic Open Market Nibiru Index and does not move to the seller’s account when a transaction is entered. When a user decides to redeem Virtual-Dollars their trading record will be examined before the redemption takes place. If anything looks suspicious the currency will not be redeemed until there is certainty that everything is above board. Also, all transaction entries are accompanied by an email, so if someone debits your account mistakenly or fraudulently you will know about it. Real-time statements available from the site will also keep you informed about your standing.
Q: What if I don’t have a bank account. How can I participate in this?
A: You don’t need to have a personal bank account. All you need to provide is details of an account where redemption payments can be made. This could be your partner’s bank account, a friend’s, your employer’s or anyone else’s who will receive payments for you (and then pass it on to you!).
Q: Do I need to deposit money before I can use the Virtual-Dollar facility?
A: No, but obviously if you want to purchase something you can’t do so until you have sold something and earned some Virtual-Dollars from another user. If you have a good product or service to sell then you can quickly earn some currency and start spending.
Remember though, if no one deposits money and just waits for others to start the buying from them then nothing will happen. There has to be currency in the system for users to begin purchasing.
Q: How much money should I deposit?
A: That’s entirely up to you. If you feel a bit insecure about this whole thing then just deposit a little in the beginning to see how it works and build up confidence. If you want to make a specific purchase then obviously you need to deposit enough to cover the cost of it. Later on you need to deposit enough to cover all your disbursements.
Q: How do I know my money is secure and that the Administration won’t just run off with it?
A: You will just have to trust us! The record of the CES is impeccable and any fraudulent activity would be the end of the system. We are not in this to ‘make money’ but to get rid of money-as-we-know-it.
Regular banks are in the business to make money out of your money and you trust them. They only keep a fraction of the money you deposited with them in reserve. The rest is lent out to make more money. When banks fail, the chances are that you won’t get your money out because there is insufficent held in reserve. The Virtual-Dollar system keeps a 100% reserve, so your money is always there.
Q: Does my money on deposit earn interest?
A: No, at least not in the beginning. The Administration has to pay bank charges for its bank account and there will be other expenses in the national currency to run the system. The money to cover these will come from interest earned on the deposits. Additionally the Administration will use the interest to pay for running the exchange and for development projects (e.g. opening and running ‘branch offices’, user training etc.).
To prevent abuse of the sytem by the Administration, all users will be able to see the total amount of money ‘in the bank’. This is the money deposited by the users. The system will be audited by an independent auditor and all figures will be made available for scrutiny.
We will endeavour to keep the system as open and transparent as possible so that users will have faith in the system and be sure that their money is not being used incorrectly.
Q: Do we have to pay levies on transactions like we do with NEO?
A: No. There are no transaction levies when trading with Virtual-Dollars. However, the Administration may in the future use levies to generate revenue if required. For now one of the main attractions of the Virtual-Dollar system is that it eliminates the usual fees and interest payments normally associated with conventional banking.
Q: Does this mean we can now advertise in Dollars only?
A: No, Dollars-only offerings are still not acceptible. There are many other places where you can advertise your Dollars-only offerings or you can negotiate directly with your buyers/clients/customers. If buyer’s are outside the system then invite them in. We are, however, considering a separate, Dollars-only advertising place.
Q: Does this mean you are now going to lend money too?
A: If you require credit then use NEO! Remember, credit is receiving value from the community before you have delivered like value. By all means receive what you need from the community but ‘pay’ it back by delivering goods and services to other members of the community within a reasonable period of time.
Q: Can I trade with people in other exchanges?
A: Not yet but we plan to provide that ability soon.
Q: Will I be able to trade overseas?
A: That’s problematic because of exchange rates, but we’re working on it!
Q: What happens if I sell something and the buyer says “Debit my account” but when I go there to do it I find that he has insufficient money in his account?
A: That can happen. If the buyer has a zero balance or a balance less than the amount you want to debit him, then you can either debit what he has in his account and the difference in NEO or decide that the trade falls outside of the system. In other words, you have to collect the money from the buyer in the ‘normal’ economy either by demanding cash, a cheque or whatever other payment method is acceptable to both of you.
Q: There are not many traders on the system. How do I trade with my normal customers who are not part of this?
A: Invite your customers onto the system. The more users there are the easier it gets. Push back the barriers until everyone in your supply chain is trading through the system.
Q: What about tax?
A: The CES only provides a transacting platform and is not responsible for calculating, collecting or reporting taxes. It is up to you what you want to declare to the taxation authorities. Think of it in the same way as using cash.
Below are some of the benefits of using the Virtual-Dollar Facility. You will discover more as you begin to use it:
- Free banking. No more outrageous fees and inexplicable bank charges. We’re not trying to make money out of money. The Virtual-Dollar currency is for facilitating exchange, not for extracting wealth out of others without delivering anything socially-useful.
- No interest. The concept of ‘interest’ has been excised from this facility! You can’t go into ‘overdraft’ but if your ‘funds’ have ‘run out’ you can use interest-free NEO to obtain what you need.
- Instant transfers. No more waiting for cheques to ‘clear’. Conventional clearing practices are primitive and designed to extract even more out of us by delaying the process and thereby giving banks a ‘float’ of money in limbo that can be invested.
- Mobile phone interface. Do all your trading and banking using your mobile phone. You can use your mobile to ‘pay’ sellers or, if you are the seller, to debit your buyers. Your mobile allows you to use the Virtual-Dollar facility in market situations where you need to check if your buyers actually have the ‘funds’ to purchase what you are selling.
- It is secure. A non-physical money can’t be stolen and openness and transparency discourage fraud.
- Electronic-only transactions. No cumbersome cash, chequebooks or waiting in queues for tellers. Complete your transactions in an instant using your personal computer or mobile phone.
- It is a local or community currency. It keeps the wealth of the community in the community. Conventional money leaks away to the ‘money centres’ because it knows no bounds or loyalty, leaving in its wake ‘money deserts’, poverty and desolation.
- It builds community instead of destroying it like conventional money. We trade with our neighbours instead of with people far away. In this way we strengthen ties and create faith in ourselves.
- Reduces dependence on cumbersome and hostile bureaucracies. Replace hostility, antagonism and opposed interests with friendliness, amicability and congurent interests.
- Trading is cheaper so your money goes further. By cutting out interest and unnecessary fees your money is used purely for exchange and is not siphoned off to support financial institutions.
- It does not assume you are wicked! Conventional financial institutions assume you are wicked and evil. You are guilty of malicious intent until you prove your innocence. Here we give you the benefit of the doubt and assume you are innocent until you prove yourself to be guilty.
- Simplifies life. Make one deposit to cover all your disbursements. Instead of separately paying the butcher, the baker and the candlestick maker, make one payment to the NMNI Bank and let your sellers credit themselves.
- Streamlines trading and eliminates hassles. Sellers do all the work. They enter the transaction records so there is no need for buyers to ‘pay’ sellers. This in itself has many benefits for sellers:
- No need to issue invoices, statements etc (except where it was impossible to give a firm price in the beginning).
- No waiting for cheques
- No standing in bank queues to deposit cheques
- No chasing for your money
- No debt collecting
- No bad debts
- No ‘cash flow’ problems
- No need for accountants. Everything is on the system.
- Instant, real-time statements covering any period.
- Instant, real time information about your trades with any trader.
- Transparency and openness. See everyone’s current balance and their trading record. Never be caught out by selling to a trader who has no ‘funds’.
- Free credit in the form of NEO.
Here are a number of ways that the Virtual-Dollar facility can be used. You will no doubt be able to think of many other ways to use it.
- Make normal payments
Use your Virtual-Dollar account to pay for anything (from a NMNI seller) that you would normally pay for with cash, cheque or credit card.
So why not just pay with cash, cheque or credit card?
Because it is so much easier! You don’t have to do anything; you just tell the seller to “Debit my account!”.
- Pay for items on the NMNI advertised as part NEO and part Dollars
Where items are advertised on the Offerings List for part NEO and part Dollars, you no longer have to fork out part cash and get the seller to debit your account for the NEO. Now the seller can do both at the same time and you don’t have to carry cash around with you.
- Replace cash!
Using the Virtual-Dollar facility is even easier than cash, and a lot safer than walking around with cash in your purse, wallet or pockets.
Simply tell your sellers to “Debit me!” and never use cash again (apart from in the ‘old’ economy unfortunately!).
- Use it to receive payments from non-CES buyers
You can use your Virtual-Dollar account to receive payments from non-CES buyers (i.e. the general public). They deposit money into the account of the Noocratic Open Market Nibiru Index , which will credit your Virtual-Dollar account. From there you can purchase what you require from other Noocratic Open Market Nibiru Index traders or redeem it.
- Transfer money to others instantaneously and without charges
If you need to transfer money to another person (they would also have to be a member of the Noocratic Open Market Nibiru Index ), let them debit your account for the amount they require.
- Give someone a bank account
Help someone classed as “unbanked” to get a bank account. Many people do not have a bank account because banks won’t open one for them, or they have ‘insufficient funds’ to maintain one. Now having a Noocratic Open Market Nibiru Index account, with Virtual-Dollar trading activated, is like having a regular bank account. Share your personal bank account details as the destination for redeemed Virtual-Dollars and the other person now has all the main services provided by regular banks. Payments can be made into the NMNI Bank and withdrawals can be made via your account.
- Give yourself another bank account
By signing up to use the Virtual-Dollar facility you are in effect providing yourself with another bank account. Payments from third parties can be paid into the NMNI Bank and your payments can be made inside the Noocratic Open Market Nibiru Index if your sellers are in there too. If they are not, invite them to join the Noocratic Open Market Nibiru Index !
- Use it to avoid bank charges
Banks charge outrageous amounts for every little transaction or service. Now you can save huge amounts by using this free service.
The Virtual-Dollar facility as it currently stands is largely experimental. We don’t want to put too much effort into it until we see how it is taken up by users. As it is a somewhat unconventional way of trading with our oh-so-conventional Dollars, it is going to take users some time to come to terms with it. We have had a lot of ideas about its future development but will introduce new features on demand or as the need arises rather than making the interface so complicated that no one can understand how it works.
The following are some of the features that we plan to release in the future.
- Multiple transaction entry
Currently it is only possible to enter one transaction at a time. Often sellers make multiple sales at one time (e.g. at a market) and prefer to enter the transactions as a batch. To facilitate this we will provide a number of ways to enter multiple trades. These include a multiple trade entry form, a ‘paste’ form where it will be possible to insert multiple trades prepared ‘offline’ with another software program, a transaction ‘upload’ facility that will allow the uploading of transactions recorded with another software program.
- Automatic and scheduled transactions
This will operate like a ‘debit order’ with a conventional bank, except that instead of activating ‘payments’ it will automatically credit your account and debit your buyers’/customers’/clients’ accounts. This will be particularly useful for debiting regular buyers such as tenants, parents for pocket money (!), regular customers for your services (e.g. local government could use this for rates, water, electricity etc.), students for fees (schools, tutors), etc. It will also be useful for buyers who are paying for larger purchases in installments. They will simply have to ensure that there are ‘funds’ in their Virtual-Dollar accounts so that their sellers can set up regular transactions to credit themselves.
- Regular trader lists
This will operate like the ‘beneficiary’ lists of regular online banking. ‘Beneficiaries’ don’t make sense in a context where the seller (the beneficiary) enters the transactions so the list will consist of your most regular traders. These will be traders that you most frequently sell to or purchase from. This feature will make it easier to manage your regular trades.
- ‘Safe shopping’
People living in unsafe areas will be able to go shopping without having to carry cash, credit cards, cheque books or any other credit instruments. Merchants will be able to link fingerprint recognition devices to the CES, which will authorise their customers (i.e. confirm that the buyer is registered on the system and that they have ‘funds’ available that the merchant can debit). Such buyers will deposit their funds in the CES ‘bank’ and not with the merchant (which could also be an unsafe action).