How to implement a new value system

In my previous post I promised to reveal how do I imagine a replacement system for money. The goals of proposed new system are listed in my third post. Here I will talk about my proposal on how to implement those goals. The listed proposals are mostly just a collection of good ideas I found all over the web which I try to combine into a workable and better system then the ones I was able to find until now.

Goals and the means of implementation:

• the value in the new system has to be unlimited, but it also has to retain value
• Gold standard was coping moderately well with the task of retaining value, but the gold scarcity is very limiting and thus it did limit the availability of money. Also worth noting is that gold itself is a bad substitute for value. It has some practical use in manufacture of microchips and in medicine, but mostly it is used to produce vanity items with very little practical value. Especially in the times of war its value drops to its levels of usefulness (uselessness).
• In my opinion fiat currency is a failed attempt to provide an unlimited money - the excessive printing of bonds backed money is decreasing its value and accelerating its accumulation in the hands of the elite.
• Third path is taken by many time banks. Those use a currency that is based on the value of potential to do some work. This is the option I am cheering for.

• the new system has to be inclusive, it has to let anybody to participate
• What is the commodity that anyone can trade with and is quite stable in value? It is a work hour. Many people are already participating in online time banks, but those do not fulfill all the requirements to provide a free and fair money. That is why I hope to extend the Cyclos project to be even better tool then what it already is.

• balanced risks and consequences in trade
• Trade has to be balanced - that means that there is both way dependency between the trading parties. The currency in the value system proposed here is just an intermediate state of debt, that both parties have to work on to eliminate it. I am greatly impressed by a concept of friend2friend payment network called Ripple. In Ripple there is only as much imbalance as the trading parties allow it to be. Some more explanation on how Ripple works is on youtube. Another implementation of the concept is Circular Multilateral Barter (multiswap.net) project on sourceforge with huge potential.A successful trade in my view is a closed trade that does not create debt imbalance.

• the value in new system has to be immune to stealing
• Each person in the new system of value will have a balance sheet of his assets and liabilities instead of money balance. Since there is no neutral currency, there is just a list of work time owing and being owed, the currency itself can not be stolen, it is also less attractive for fraud.

• the new transactions will always be traceable, thus easing crime and abuse detection
• Having all trades recorded and available for public review will allow the society to detect and roll back criminal activities or abuses.

• the new system has to prevent unnecessary global financial turbulences
• There is no need for banks in a friend2friend currency, each individual is credited by his friends with a certain level of trust. Thus the shortage of credit can only be a consequence of bad business practices and / or lack of trust. This way the shortage of credit will always impact only a single person.

• the new system has to increase personal freedom of participants
• Since the creditors are each persons friends, there is no need for banks, accumulation of power and no possibility of global bullying.
• There should not be any obstacles when any two participants decide to trade, not lack of credit and no authority that would prevent the trade. Note that I do not believe there is any way to prevent illegal transactions, we can only try to detect them and request that the perpetrators do repair the damage they have done.

• the new system has to reduce systematic abuse by enforcing direct and personal responsibility
• There should be no delegation of responsibilities. We can have shared property, but delegation to any abstract entity like a corporation should not exist.Especially no limited corporations should exist, the responsibility has to be full and equal for all participants.

The text above is written in layman terminology, since I am one, but I strongly believe that the points listed are still valid. Feel free to point out any errors or start a discussion in comments. Since I am hoping for an open process of development any contribution to this noble goal will be welcome.