Certificate Money Description
The Certificate Money Program is designed to be a way for cash-strapped communities to partner with local independent banks to convert private assets (i.e., jewels, land title, car title) into bank-issued certificate money, which local people use like other money. Quite simply, Certificate Money is an alternative to Federal Reserve Notes and can help promote local stability in a time of economic depression.
How the Certificate Money Program Works
Basically, a community's local chamber of commerce should take the lead in helping independent banks create a Certificate Money Program. Once the program is running, folks can sell (or loan) whatever assets they want to the participating local bank(s), and in exchange, an equal amount of Certificate Money is printed. (Notably, a professional trustee or even the Chamber of Commerce itself as a trustee can serve in place of a bank).
For example, if you give your bank (or trustee) the pink slip to your car, the asset is appraised by your bank, and then your bank issues you certificate money in the denominations (number of bills) you request.
So, you could ask your bank to split your car into 150 certificate money bills but it might be difficult to find people willing to accept these bills. Would you want to own 1/150th of a car? On the other hand, if you split your car into 10 bills valued at $1,000 each, or 1 bill valued at $15,000, this might be more useful. You could even make your money more valuable if you agreed to let the bank store your car in a warehouse for a year or more.
So, you or your bank hold onto your assets (or title to your assets), and you use the certificate money just like you use regular money.
Let's assume you go to the local grocery story to use one of your $1,000 certificates to buy $1,000 worth of store credit. The grocery store owner takes a look at your certificate and then visits your bank's website to verify the certificate. Let's assume he is satisfied that your certificate is in good standing with the bank, so he accepts it in exchange for $1,000 of store credit. Well, now he owns your certificate. He might decide to continue circulating your certificate in the community (perhaps he can use it to pay a contractor, or buy bread from the local baker), or he might just decide to immediately bring it to your bank to redeem it.
If he does choose to redeem it, then your bank will collect this certificate from him and in exchange give him an official certificate of title to 1/10 of any proceeds from the sale of your car. Now, this doesn't give him the right to drive your car or even sit in it. He can't even inspect it (unless your bank's policies say otherwise). Rather, unless he owns all 10/10 certificates for the car, all he receives is the legal right to demand that you sell your car (unless you can pay gold to buy out his 1/10 interest first, per your bank's policies), so he can receive 1/10 of the proceeds. Your bank receives the other 9/10 of the proceeds, and your bank will use that 9/10 to purchase as much gold or silver as it can, so that the other 9 certificates out there keep their value.
In the off-chance that you refuse to sell your car, then the grocery store owner can either ask your bank to resolve the matter through the bank's collection procedures, or he can take you to court or arbitration to force a sale by auction.
How Do I Get Started?
To begin using certificate money in your community today:
- Contact your local bank or trustee to ask about their willingness to participate in a Certificate Money Program. Notably, an FDIC-insured bank will not be eligible to participate due to the Federal Reserve Bank's monopoly on money creation.
- Deposit or pledge with your bank/trustee the assets of your choice in exchange for unique “Certificate Money” printed professionally by your bank/trustee and accounted for individually in your bank's/trustee's secure registry.* The face value of a certificate is naturally the asset(s) for which it is redeemable.**
- Use your certificates like money to buy goods and services anywhere in the world. Buyers and sellers should be able to instantly confirm the redemption value of any certificate through your bank's/trustee's online public registry.
* The bank/trustee issuing your certificate can also offer you several options to buy back your specific deposited or pledged asset(s) even after you've spent your certificate money. To do so, simply deposit the precious metal quantity specified on the certificate. Your asset on hold with the bank will then be returned to you, and replaced with the precious metal you deposited. This way, every certificate circulating in commerce is redeemable for a specific and valuable asset, and therefore is inherently valuable at all times.
** Wherever the original asset has been redeemed by the depositor, the certificate's face value automatically becomes the precise quantity of precious metal stated on the certificate, which the depositor was required to deposit with the bank in order to redeem the original asset, and which the bank is now required to hold in safe-keeping until the certificate is redeemed.
* Fully-Funded (bank retains all assets on deposit to cover all credit)