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Basic Principles

MONEY 2.0 is digital account money. Tabs for all accounts are kept centrally (typically on a computer), much like in traditional banking. There are no paper bills or coins.

MONEY 2.0 is a medium of exchange. Instead of being issued centrally (as is typical for bank money), the medium of exchange is created automatically whenever market participants trade goods or services. Contrary to the traditional money economy, the exchange is not taxed with the money utilization fee known as interest.

MONEY 2.0 is implemented by the market participants (bottom-up approach) as a replacement for traditional bank money. Since MONEY 2.0 is accepted on a voluntary basis, its overall construction needs to be superior to traditional money.

MONEY 2.0 is convertible to traditional bank money – the exchange rate is determined on the free market.


MONEY 2.0 is administered centrally. The central office ensures that the participants observe the system rules and verifies the identity of new applicants. Applications can only be accepted from countries where the rules can be enforced by law. For transactions to non-members, participants use guest accounts or other mediums of exchange.

MONEY 2.0 needs to be sufficiently funded (via traditional bank money, if necessary). The central office levies fees from the participants to cover the costs of administration. To prevent bogus transactions, part of the fees needs to be collected on a per-transaction basis. Additionally, the administration levies a proportional balance fee to cover the costs of defaulted promises.

Money Creation

Although MONEY 2.0 is issued by different participants, all the money created is equal and not distinguishable.

Participants may only overdraw their accounts up to their money creation limits. Money creation limits are granted by the currency administration against proof of sales and income – they are equivalent to the value of goods and services that each participant can bring to the market in three months’ time.

Anyone issuing money is required to perform equivalent service and settle their account within three months. If participants don’t fulfill their obligations, the outstanding amount is eventually paid from the system account. The account holders then owe the outstanding amount to the central office, which can collect it like a regular unpaid bill (demand note, and ultimately legal action).

Savings and Loans

In MONEY 2.0, currency administration and credit business are entirely separate.

Participants who need more cash than they can issue have to borrow it from other participants. There are two options for arranging a loan – market participants can either bear the default risk themselves and lend their savings to potential borrowers directly, or a savings bank acts as an intermediary, paying flat interest rates to money-holders and keeping the difference to the actual lending rate as profit.

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