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"The Dual System Theory of Money: A sound monetary system is comprised of a stock of a scarce monetary commodity plus a production-backed elastic supply of credit money denominated in it."
Overview
Overview
Bitcoin is sound base money (M0), but it lacks the credit money layer needed to function as a global monetary system, a currency. Without a mechanism for issuing short-term, non-inflationary media of exchange denominated in bitcoin, its purchasing power will remains volatil and block adoption by businesses in the real economy.
Bitcredit fixes this by introducing a novel bitcoin credit money layer (M1). Businesses issue electronic bills of exchange to pay for real goods and settle on the Bitcoin mainchain at maturity. Bitcredit mints, so-called wildcat nodes, split protocol-compliant e-bills into minibills representing bitcoin credits: a bitcoin-denominated currency for instant, private, scalable and free payments.
Bitcoin's volatility will not go away by itself. It needs a credit money layer to stabilise Bitcoin. more →
Every 'real economy' e-bill traces back to a higher order goods passing through the supply chains. more →
The supply of credit money expands and contracts with businesses' demand, not by central bank 'policy'. more →
Enforcement
Enforcement
Any credit mint's assets and liabilities are rigorously verifiably and constantly supervised by other mints. more →
Every e-bill is paid on mainchain at maturity, thereby building an immutable credit history of payer honesty. more →
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