"That this world, shall have a new birth of freedom—and that the Coin of the people, by the people, for the people, shall not disappear from the earth, but remain preserved for future generations.”
For the first time in human history each and every person shall have an inalienable right to mint their own Coin from their economic activities, without fear or favour of others. The Coin alone as digital cash remains a liability of no man, and moves via an offline payments to an others via the universal acceptance as legal tender without the the need for any settlement system or infrastructure.
Digital cash here means the representation of cash in electronic, digital form. This implies equivalence to cash, notes and coins. Digital cash exist as universal Legal Tender[1]. Digital cash exists as a chattel or tangible form of digital bearer private property, protected by each nations constitution.
The issuer of the digital cash is regarded as the promisor in the sense that it represents to the users of the payment system that the digital cash is of value, this must be achieve via the ability of the bearer of digital cash to redeem the digital cash in gold via the law of one price (free market) upon demand, without recourse to any centralised intermediary.
Axiom: the Coin is minted by the people for the people and is redeemable in money-capital (gold) upon demand, this underpins its universal acceptance as a medium of exchange within all payments.
Under nation state legislation counterfeit money refers to both coins and paper money. Hitherto the focus has been on the prohibition of the creation of fake notes or coins which resemble, or are intended to resemble, physical cash. It would appear that the assumptions of a physical money underlying the criminal law here prevent digital cash from being caught within it. Thus it is unlikely that digital cash will be considered to be counterfeited physical money as it is not likely to be regarded by a court as resembling paper money or metallic coins. Perhaps the more interesting question is whether digital cash itself is capable of being forged or counterfeited. It is clear that it would not constitute counterfeit money for the purposes of the Crimes (Currency) Act 1981.
Axiom: The Coin cannot be forged, or double spent even if it can be infinitely copied for zero incremental cost.
Today only the Coin exists as digital cash with universal legal tender backed payment finality via chose in possession.
Notes
1. Legal Tender is a currency-based payment, which when tendered and mutually accepted as payment, discharges the debt, with legal finality. Legal tender is ‘private property’ as such exist solely as ‘chose in possession’ under common law. All forms of Legal Tender must be capable of being possessed and tendered for payment. Under IAS 32 definitions, legal tender money (cash) is neither “credit” for its holders nor “debt” for its issuers.
2. The peer-to-peer model cuts out the financial intermediary PSP and enables the payer to send the payment directly to the payee. Peer-to-peer payments can take a variety of forms; the simplest form is a direct cash payment. The emergence of digital legal tender allows digital based peer-to-peer transactions to be executed electronically between the parties separated by space and time. It is a digital version of the in-presence cash (note or coin) payment conducted throughout history.
3. Inalienable right represents fundamental freedoms and privileges to which all individuals are inherently entitled by virtue of being human, and which cannot be taken away, transferred, or surrendered by any government or authority.
3. The Law of One Price asserts that domestic and foreign prices are equal when priced in Gold, and that all commodities can be priced in Gold.
