Decentral Provision of Payment Tools in a Credit Economy

* Article: Decentral Provision of Payment Tools in a Credit Economy. By Hans-Florian Hoyer. September 2022

URL = German

Description

"By consistently using the possibilities of the credit economy, a new protocol for purchase money becomes conceivable. One of the possibilities is to leave payments open (credit) and settle them together after an agreed time. Another is delegation - the transfer of a debtor’s debit to a creditor to compensate the creditor for his own debit.

In place of the compulsory acceptance by the citizens, the society can assume a guarantee of acceptance for the settlement, which it already does de facto in bad debts. With an electronic version of the paper based protocol presented here, parts of the retail payment traffic could be gradually decoupled from the banks, reducing their systemic relevance and the need to bail them out with tax funds."