RedaMark

How does the Reda Currency System work?

The Reda Currency System (RCS) comprises Pre-Audited Money (PAM) and Cereal-Based Currency (CBC) that provide a means of exchange, a unit of account and a store of value. Once deployed, token value and community buy-in will depend on very open transparency of systems and processes; compliance and governance oversight will play a key part in this. Prior to "Go Live", details remain confidential, but further information is available to social impact investors subject to non-disclosure agreements. So, WATCH THIS SPACE. 

It’s so complicated: why should it catch on?

Actually, RCS can be delivered with greater simplicity than conventional fiat currencies. Whilst the system must work in an open market and cope with dynamic complex economies, its value indicators are dependent on purchase power in a far simpler way that avoids obfuscation through risky debt arrangements, derivatives, bond markets or complex tax regimes. More details will be made available on “Go Live”.

What problems is it trying to solve?

RCS brings financial RESILIENCE. Yes, it will prioritise essential services and foster productive economic activities, but it does so in a way that delivers resilience at a personal and community level, can survive "conventional" global economic shocks, and can operate in a post-quantum cryptography environment. PQC is approaching and is a massive challenge for both conventional and crypto- currency payments architecture, and the race is on to reduce the potentially devastating vulnerabilities to the bank accounts and existing crypto wallets that currently depend on legacy systems and protocols - this has huge negative societal implications that RedaMark can help mitigate.

Where there is demand and unused or suppressed economic potential, RCS can deliver the liquidity needed to tackle the issues of ageing populations, mounting public and private debt and economic vulnerabilities: this is a solution that does not impose the choice between austerity or asset price pumping, but it does significantly reduce the unsettling response lag that is usually expected with ongoing monetary and fiscal management.

Economic-related riots and protests are taking place around the world, so too there is war, famine and migrant crises. To cope with these without unrealistic or unworkable demands on aid or economic growth, the clever mechanisms of RCS are configured to prioritise the delivery of services for community benefit in a way that is neither dependent on tax raising capabilities nor vulnerable to tax avoidance, evasion or the limitations of global taxation reform, and nor are they dependent on the often-elusive continuous economic growth. 

The alternative: the developed world faces questions like: Why are local authorities going 'bankrupt'? (parliament.uk) 16-Jul-24]; and in the developing world "even at the more impressive growth rates recorded in the early 2000s, it would take the average developing country 170 years to reach just half the rich world's income per person." [Arvind Subramanian cited in The world’s poorest countries have experienced a brutal decade (economist.com) 19-Sep-24]. 

Can I make money out of an investment in RedaMark?

RedaMark will retain a return-on-investment potential to ensure it remains a viable enterprise. The business plan shows how its systems and processes can optimise the multiplier effect on purchase power delivery (not RoI) by a factor of 2,000. However, the business model is configured so as to prioritise community buy-in and reduce the risk of moral hazard.

Can I have savings in RCS?

Yes – subject to avoiding inflationary oversupply that may increase holdings but not value. Reducing the output gap of a community's economy would be prioritised over savings and the moving of excess funds into asset price pumping.

Does RCS need a popular mandate before it can be introduced?

RCS must work within existing laws and regulations, it is, nevertheless, an instrument for economic change that can be introduced to circumvent the intransigence of others. One of the clever things about it is its scalability which means that it does not need to be bogged down confronting vested interests or dogmatic politics: it can simply work around them and target delivery to where the need is. RCS provision would include community engagement.

My politics is left/right of centre – will I like it?

Whilst economists may argue whether the delivery of essential goods and services should or even can come before wealth creation, RCS mechanisms prioritise these essential goods and services yet still subject them to competition and the efficiencies that this can bring. Moreover, RCS can even engage in competitive tender.

RedaMark organisational arrangements are constituted so as to mitigate moral hazard and avoid what could otherwise become a short/medium term exploitative business model. There would be a self-reinforcing linkage between social impact and financial sustainability.

This is neither a proposition for the promotion of a centralised socialist economy, nor for a financialised capitalist economy. RCS could be used within existing economies and – where they are working well – operate alongside them.

This is an answer to John Maynard Keynes' comment that "The difficulty lies not so much in developing new ideas as in escaping from old ones..." (Preface to The General Theory, 1936); but not forgotten is Friedrich Hayek’s assertion that “The economist knows that a single error in his field may do more harm than almost all the sciences taken together can do good.”  (LSE, February 1944).