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Phone and bandwidth backed currency

Pay for phone time and make a currency out of it
  [vote for,

M-Pesa is a very successful system used in certain countries wherein a certain provider of cell phone time allows users to purchase, return, and transfer phone hours. In those countries it has become a defacto currency. The difference between M-Pesa and my idea is scope of operation: M-Pesa is only used for one phone network.

I propose a business that would purchase phone time and bandwidth from every major network and ISP in its country. Service level agreements would dictate the bandwidth and time available per credit. The business would then sell bandwidth credits, refund bandwidth credits, and allow free transfer from one person to another. ISPs and phone networks would allow redemption for bandwidth. This could quickly become the next currency. The scope of the operation could soon encompass the entire world without running afoul of existing banking regulations.

Inflation and deflation would be prevented by the natural competition between bandwidth providers on one hand and the open market for credits on the other. New bandwidth would deflate the market only until its real- world value were reached. Insufficient bandwidth would inflate the market only until new entries satisfy the demand.

If the company running the whole system tries to skim too much off the top consumers will change back to the existing, alternate way of paying for bandwidth.

Bonus: "credits" are finally money.

Bonus: creates competition between ISPs in different areas as the credits for one ISP must be at value parity with the credits for another ISP. If the service offered by a particular ISP for credits falls below parity it could be sued for failing the service level agreement. If service bought on the traditional market falls below parity the user can stop buying it the traditional way and purchase credits instead. If an ISP doesn't sell credits at all it will be out-competed by any different ISP in its area who does.

Bonus: Robust contract enforcement is encouraged worldwide, as any country where SLAs aren't enforced is left out of this alternate economy.

Voice, Feb 10 2014

M-Pesa https://en.wikipedia.org/wiki/M-Pesa
[Voice, Feb 10 2014]

The Shape Of Things To Come http://en.m.wikiped...e_of_Things_to_Come
To paraphrase Edward Bond, "almost obscenely optimistic" …. [8th of 7, Feb 10 2014]


       Very like the "Air Dollar" in H.G.Wells's "The Shape Of Things To Come", which was linked to the price of air transport of a unit mass over a unit distance at a fixed speed.   

8th of 7, Feb 10 2014


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