Re: YGLs, Future of Money & Alternative Currencies - greetings & update

Thanks for the introduction
Hello Jeffrey,
It's great to hear of your interest.
I came to this topic 3 years ago. For context, Im a Professor of Sustainability Leadership, and a Board Member of Community Forge, which is now the world's leading provider of free open source software for community currencies. About 500 currencies use our tools, for instance, Time Banks USA runs on our software. Ive also now become head of research of the Green Money Working Group, which informally brings together some of the top thinkers and innovators on alternative currencies. Info on some of the reasons for this work I describe in my TEDx talk: http://www.youtube.com/watch?v=X5uGLbV5zVo

I can help in either of the following ways:
a) Leading the organising, production and facilitation of an event, either via the University of Cumbria or Community Forge. Both are non profits.
b) Helping another organisation do the organising and production, and instead specialising in advice on agenda, participants and facilitation.

It would be great to work with April on this, and any other WEF YGLS who may be interested.
I would be delighted to chat in the coming days. Please suggest a date/time. For factoring in time zones: Im in China until Sept 18th. Then Im in Brisbane until Oct 1st. Then Singapore until Oct 7th.

My phone is and skype is

Thanks, Jem
Ps: Boris, I hope to meet here in Tianjin and chat about this and other ideas.

it works with US
慈善机构地位 for org in US organise (Ill check with April

Thx Jeffrey. Ive asked my colleagues at the Uni to get back to me soon re tax issues for donations, and how donations. The NGO community forge will not receive another 3 months, and it is Swiss. Happy to help another if it needs to be 501c3 rather than a foreign charity april in Beijing (which also). Could we chat on Monday 17th? During the daytime, is GMT +8 hours). Thx, Jem

lets set a skype time. - is there a US 501 c 3 arm of your endeavors.?

Thx Jeffrey.

Ive checked, and The University of Cumbria is a UK registered charity. No news yet from my colleagues yet on any US affiliation for receiving funds. Is that key, or can you make foreign charity donations?

Yes

Sorry for all the typos .Sent from my iPhone

now? im on and up for another two hours

ill call in 5 minutes

west coast with , . lets talk on the phone today for 10 minutes you choose a time.

hi jeffrey. im in a session here at the world economic forum for another hour. can we chat after that?

sorry, no. let's try again this weekend.

Hi Jeffrey,
I think Ive found a 501c3 in US who the Uni of Cumbria can sign an MoU with to collaborate to effectively deliver alternative currencies and exchange.

Id prefer Uni of Cumbria leadership on this, but it provides an option for you, if 501c3 is key for you.

Im still in China. Its 8pm here now.

Thanks, Jem

Hi Jeffrey

Some quick thoughts from our call (as Im going to sleep now).

At communityforge.net (the NGO I serve on the board of) we have stayed away from bitcoin-type initiatives. We are now the leading provider of free open source software for community exchange systems. My interest is in massive scale, and so while our support for communities and local businesses is good, for me its been more of a process to learn about the principles and systems, with the aim of one day helping launch a global mutual credit system, integrated into relevant social media, where we can exchange globally, simply, securely, and without banks or interest (although perhaps banks could develop new business models, if they wanted to become involved: its just they wouldnt make money by controlling the credit supply).

Business self issued credit is another option we are now working on, with the Common Good Bank in the US.

To achieve a global mutual credit would require action on multiple fronts, not just technical. i.e. how to launch to make viral, how to build understanding and support, how to address/advise on legal and tax, how to recover costs or generate additional revenues, how to disperse revenues in ways acceptable to (or incentivising) users of the exchange system, how to design to protect from future backlash or technological attack, etc.

Discussions with this type of ambitious agenda have not taken place and Id be happy to help curate one.

I called again; I can speak whenever from now on.

im checked in now. i tried to return call but it said wrong number. am awake for another hour. i can call if i have yr number

I agree with your concerns re terminology, and related to that, the broader legal issues, in order to help alternatives to scale while being seen as complementary to existing institutions and government revenues. The use of the term currency is widespread in this field of alternative exchange systems, and so thats why I currently use it to make it simple to communicate with people already involved in this field.

Im pleased to hear of your ambition re scaleable alternatives to the current monetary options. Yes, the WIR mutual credit system is only about 1% of Swiss GDP, although has broader effects due to its counter cyclical impacts (economist Stodder's research). I sense from your comment that this isnt largescale, that you aim for really transformative solutions. I think now such solutions are possible, given technology. I share the same hope for massive scale of alternatives.

My current view of what could scale well beyond 1% of GDP is that they might be found within i) b2b2c mutual credit systems (where the issue of trust over extended networks would need to be cracked via affinity groups, trust metrics, insurances etc), which my NGO is now working on ii) b2c self-issued credit systems (where mutual recognition by participating businesses and ability to subdivide credit would be key) iii) a follow up to Bitcoin, with fully distributed systems so it cant be disrupted or shut down, demurrage to encourage circulation not hoarding, and a more sustainable way of issuance than the use of massive amounts of computer power iv) a commodity backed digital currency, thats backed by something that we want, e.g. kilowatt hours, or baskets of goods.

The first two arent new "currencies" as such, but exchange systems.

I know people who may be able to participate in a discussion about strategies for promoting scaleable solutions in this area.

I look forward to talking tomorrow.

Thx, Jem

Its complex. I see various possible solutions:

For mutual credit and self issued credit, if the denomination is a national currency, such as with the WIR and CHF or the new TEM (in greece) and the EUR, then tax owed on the trades is easy to calculate. Collection is another matter: but mutual credit and self issued credit systems can be completely transparent with full transaction records.

WIR system participants pay tax OK, in CHF equivalent. That probably puts a downwards pressure on the volume of trades in WIR. Ideally, national/state/municipal govns should charge tax in the exchange unit (i.e. the transactions are taking place, as this then provides a backing which the unit can be spent for taxes).

Economist and former central banker Bernard Lietaer has proposed a "boon" well local governments would issue their own fiat currency, which could then be used to pay taxes.

Different countries have different laws. For instance, in France, if your local non money-denominated income is for a trade thats not your main profession, then they do not need to be declared.

In Belgium, a professional services exchange systems between social entrepreneurs was dropped after a year, as their accountants needed to be declared, and the participants felt this was commodifying bringing into the formal economy the favours that were being done for professional friends. If the government would have accepted the unit as tax payment, then that would have helped. But we are a long way from that level of understanding and support from governments.

Its a complex area, which needs exploring as part of the development of strategies for scaling alternative exchange systems.
Is this the kind of exploration you would like to support/host/participate in?

AGREED! ME NEITHER.

nb: No chance at present of money laundering or theft or hidden transactions with mutual/self issued credit systems.

You would like to explore this in order to:
a) help create a scaleable new initiative in the market for alternative exchange systems? Therefore this is early stage exploration for what could become a commercial or not-for-profit enterprise that you might support?

OR
b) help the emerging "movement" or "profession" in the alternative exchange space to up their game in terms of scale and so they dont cause social harm (tax avoidance, money laundering, drug payments etc)?

OR BOTH, OR
c) something else

i think there are places for more than one type,, I want to stay away from the anyonouse ( but coin type ,, ) too easy to attack as drug related.. i would opt for the extreme opposite total transparency, .

i do not see how taxes are paid , in any of these systems so far. , in most of these structures , exchanges take place, and no one gets dollars or govt acceptnace scripts to pay the govt ( fed local state) tax . solution?

Tax is only a detail, but a serious one. I would like to explore all alternatives.. BUT only scalable ones. quasi barter exchanges, ( though most are only one level deep. as opposed to computation ability can find all trades ). are problematic. the taxing of even virtual currency, by the IRS, is a good example of what can go wrong. ( irs publication ). must be careful to avoid aiding and abetting money laundering. serious crimes. the bitcoin guys said they didn't mind having to go to jail. sorry, not me

revamp the financial system/ markets

To explore that topic ("revamp the financial system/ markets") would mean a broader discussion than either how to pioneer a scalable exchange system or building the movement/profession of alternative exchange systems.

Because this would also consider the broader field of monetary reform and how to promote it. This is the topic of a panel I ran in a festival in Sweden recently, where we included people working on national monetary reform, local community exchange systems, and full reserve banks. Various campaigns such as www.positivemoney.org.uk are promoting awareness and policy proposals about monetary reform.

For this broader discussion, the title could be "Strategies for a Sustainable Transformation of Monetary Systems" and it would bring together people to look at methods via education, advocacy, lobbying, as well as the development and promotion of scaleable alternatives. It could split into two working groups at some point, one on monetary reform, the other on exchange alternatives. It would help people to be ambitious and creative in thinking about largescale change, and practical in specifying what needs to be done and how to fund it.

Myself, I made the decision a 18 months ago to focus on scaleable disruptive innovation in this field, rather than the policy work (which is more my background), as I think thats where we can see rapid change, and where rapid change will also add power to the reform agenda.

If this isnt what you had in mind, then, either
a) can you write what you have in mind, or call me and explain it? Or
b) If you ask me, I'll write what I think the main things that need doing on monetary reform and exchange alternatives and strategies to get there (from my background in social change advisory with various groups).

If (b), Id need to do it on 23rd/24th as have too much teaching and travel before then.

Thanks, Jem

now voicemail

my phone crashed. android error. can u call again?

voicemail 3 times

ill call

Hi Jeffrey,

I thought about it more, and here are my thoughts, suggestions, and a draft invitation letter. If you can go through it by tomorrow, that would be great, as then we can decide whether/how to proceed. Ill be on skype 4pm to 7pm Singapore time tomorrow but in the air at other times (going to australia).

As you know, top people are busy. In this field many are underfunded or overstretched, and not interested in blah blah. Well, at least the ones I want to engage! Therefore, the type of senior action-oriented person I have in mind will look for:

clear outputs and outcomes that are more than reports or new connections

a tangible benefit from participation even if they arent satisfied with the outputs or outcomes, such as donation to something they believe in, or a fee

a professional event, located in a place they want to go for other reasons as well e.g. a hub like London or NYC, or a side event to Davos, or something that could sit alongside a summer holiday

In addition, the people I have in mind will think about the context for the event, i.e. whose agenda is driving it, or subsequent activities, and whose agenda might be served by it. Therefore, I think

I should front the initiative and mention you as a private philanthropist who will be at the event.

Therefore, I recommend:

We do it in NYC or London, depending on the draft list

I front the initiative, as above

You fund up to 15 people's travel (delegates), and also their plus ones (if they wish to bring them; not to the seminar though), and also a stipend of 400 USD a day for each participant who requests it, which they can claim personally or ask to be donated to an organisation.

You agree that you will provide at least XXXX USD for each of 2 specific project proposals to be agreed by the end of the 3 days (proposals that meet the stated ambition - i.e. activities which practically contribute towards a fundamental transformation of monetary systems - and that involve a number of the participants, and can be managed by a 501c3). I could manage the follow up liaison with the proposal leads, in order to ensure they meet your expectations and the spirit of the meeting.

I commit that the insights from the event will a) shape the introduction and conclusion to the book Im finishing in December, called "Healing Capitalism" (but with Chatham House rules, so complete confidentiality for the individuals involved) and b) inform the programme of research, dialogue and training that I will develop at the new Institute Im setting up at the Uni of Cumbria.

We hire a professional facilitator to ensure the meeting moves in a dynamic way to achieve specific insights and proposals (Id work with the facilitator in designing the day and in hosting the discussions on the day)

We organise a good party and let them invite some friends (e.g. I have about 6 friends in NYC including a pop star and a model, and about 10 friends in London including some really interesting people).

Is that OK? In which case, the key question is: what range of investment/donation would you be willing to consider for a couple of specific projects or programmes of work coming out of this day? What we are doing could be unique, and stating a figure would help people get a sense of how ambitious they can be in their thinking in the lead up and during this meeting. Sadly, at present, the big money is for cautious work. For instance, New Economics Foundation are in a consortium who have been awarded 5 million Euros from the EU to develop and study 6 local currencies, where the currency systems we believe are fundamentally flawed/limited.

I have drafted a letter that could be the one Id send to invitees, so you see how I think it could be framed/pitched. Once you give me the green light to these ideas, Ill

a) draft an initial delegate list for you to add to,
b) prepare an MoU so we are clear on the agreement and eventual costs e.g. I would then start to record and bill for my time in the process of project development and delivery (I presume phone calls with some potential participant will be necessary to explain and then ensure their commitment).

If in NYC, would you prefer to host, or have a neutral venue and house people in hotels?

I'm still thinking of first week of December (6th/7th/8th) which means we would need to get the invites out in the next 2 weeks. If this takes longer to confirm, then I recommend early February instead.

Here is the draft letter, so you see how Id frame it.

Subject: Rethinking Monetary Systems

Dear XXXX

I am delighted to invite you to a private and confidential dialogue on Rethinking Monetary Systems, running over 3 days, which will bring together a maximum of 15 world experts. Your entire costs of attendance will be covered, including the costs of your partner if you wish to bring them, and a daily honorarium. My interest in convening this meeting is as a Professor developing a research and teaching programme on this topic, and as a board member of a leading community exchange system provider, but mostly as someone who believes that we can no longer wait for someone else to show an ambition that matches the scale of the problem. The intention is that this meeting is the beginning of a sustained effort at better informing work on reshaping monetary systems. Therefore, the philanthropist helping produce this meeting has agreed to make a contribution of XXXX USD to each of two projects that you co develop and agree to work on with some of the other participants.

As you know, the ongoing effects of financial crisis are leading more people to question the fundamentals of our monetary systems. Persistent economic, social and environmental concerns have led others to campaign for changes in monetary and banking systems, and to the creation of independent exchange systems at community or small enterprise levels. Yet the responses and reform agendas discussed by leaders in business, government, academia and civil society appear to fall short of a fundamental rethink of monetary systems - and consequent initiatives - to promote sustainable development.

There are various initiatives happening on monetary reform and on alternative exchange systems. Despite some positive examples, the impact is tiny in comparison to the size of the global economy. In order to create new monetary or exchange systems that promote sustainable development there needs to be a quantum leap in current efforts. For that to happen, there needs to be a new strategic dialogue around transforming current monetary systems. Those working on monetary reform and exchange alternatives need to dialogue. Together, they also need to dialogue with professionals in mainstream accounting, finance, derivatives, currencies and taxation. Then they need dialogue with professionals working in relevant fields of social change, communications and disruptive enterprise.

This is an ambitious and long term agenda. To begin with we must try to find a workable common understanding and direction. For that, a small gathering of brilliant minds from relevant professions is a necessary starting point.

The event will begin with dinner on Thursday evening (insert date), and continue on Friday and Saturday, concluding with a soiree on Saturday evening (insert date). Sunday is free for fun or further conversation. Administratively, the meeting is being produced with the help of XXXXX [TBD: Cumbria, Community Forge, or Planetworkl, and the costs covered by a private philanthropist, whom you will meet on the day.

The turn around on this project is quick, so I would welcome a confirmation by email in the coming week. However, if you would like to discuss this further before agreeing to participate, I am on

Yours sincerely,

Professor Jem Bendell

Hi Jeffrey

Any thoughts?

OK to progress? Or too much of a commitment/project than what you had in mind?

Happy to chat any day from, Seattle time: 330-4.OOpm or 1030pm onwards Seattle time.

Thx, Jem