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Right, not intrinsically. Sometime tokens are IOUs e.g. redeemable stablecoins, where the issuer promises to swap the token for bank money. But for tax purposes

Right, not intrinsically. Sometime tokens are IOUs e.g. redeemable stablecoins, where the issuer promises to swap the token for bank money. But for tax purposes most jurisdictions still treat them as commodities AFAIK, to my point earlier. And fiat isn’t that different either: central bank currency are technically liabilities, but there’s nothing concrete you can redeem them for beyond more of the same money…

EGreg 11mo ago
This is what a lot of people get wrong. Money doesn’t have to have liabilities, only fiat currencies do. Commodity money eg gold or silver are valuable in and of themselves, for instance. The government sues signiorage there. However, individual liabilities are a great way to introduce currencies into circulation. Start with eg loyalty points at a restaurant or credits redeemable aboard a ship etc. We are working on that: https://community.intercoin.app/t/local-community-currencies/1067 https://community.intercoin.app/t/local-community-currencies... A city can skip all that and just issue a UBI to all its citizens in its own currency, and start accepting taxes and fees in that currency. Read this: https://community.intercoin.app/t/rolling-out-voluntary-basic-income-in-communities/1069 https://community.intercoin.app/t/rolling-out-voluntary-basi...
- hgomersall 11mo ago
  All money ever has had an associated liability. Commodity money absolutely relied on the face value as the basis of the commodity value. Any metal/face value disparity could lead to cross border arbitrage (making use of counterfeiting), but intrinsic to the process is the associated liability of the issuer. Otherwise you're just trading assets.
  - EGreg 11mo ago
    Seigniorage doesnt create liability But commodity money doesn’t require seigniorage
    - hgomersall 11mo ago
      Seigniorage absolutely relies on the fact that money redemption value is different to the value of metal (or whatever). That difference is the liability.

EGreg 11mo ago

This is what a lot of people get wrong. Money doesn’t have to have liabilities, only fiat currencies do. Commodity money eg gold or silver are valuable in and of themselves, for instance. The government sues signiorage there. However, individual liabilities are a great way to introduce currencies into circulation. Start with eg loyalty points at a restaurant or credits redeemable aboard a ship etc. We are working on that: https://community.intercoin.app/t/local-community-currencies/1067 https://community.intercoin.app/t/local-community-currencies... A city can skip all that and just issue a UBI to all its citizens in its own currency, and start accepting taxes and fees in that currency. Read this: https://community.intercoin.app/t/rolling-out-voluntary-basic-income-in-communities/1069 https://community.intercoin.app/t/rolling-out-voluntary-basi...

hgomersall 11mo ago
All money ever has had an associated liability. Commodity money absolutely relied on the face value as the basis of the commodity value. Any metal/face value disparity could lead to cross border arbitrage (making use of counterfeiting), but intrinsic to the process is the associated liability of the issuer. Otherwise you're just trading assets.
- EGreg 11mo ago
  Seigniorage doesnt create liability But commodity money doesn’t require seigniorage
  - hgomersall 11mo ago
    Seigniorage absolutely relies on the fact that money redemption value is different to the value of metal (or whatever). That difference is the liability.