Coming your way
A National CBDC, possibly partly backed by physical asset reserves (metal or otherwise), will augment your inflating National Fiat Currency, then replace it quickly.
In parallel more and more Cryptos PoS or PoW otherwise will be backed additionally by physical assets (metal or otherwise) offering an even better risk management method to protect your stores of value, then we see today offered by most cryptocurrencies.
The current crypto Gateways of Liquidity, Big Central Exchanges like #BINANCE , where multiple stable US Stable coins are a typical side car parking spot for most small investors, will give way partly to DEX Distributed Exchange support of P2P person to person transactions and in the business case use multi-sig wallet driven Atomic Swaps between cryptocurrencies to settle those transactions.
National Regimes will pressure their clientele to go all digital for fiat and quickly add CBDCs backed by something, where in the former use case Sweden is the best example, eliminating all fiat coin & paper money.
Others will run the 'old school' coin/paper fiat systems as they are in parallel with online Fiat adding a NAT CBDC backed by some physical asset reserves at least partly , while other Nat Regimes still, will re-invent their coinage and paper money to be backed by physical assets, or in fact be physical assets of copper, silver, nickle and gold, with both old and new systems accounted on distributed public ledger in parallel with their National Regime CBDC 'print at will', play with the reserve percentage, type and mix of types, digital currencies.
So how does a local economy, let along a local investor protect one's self and stores of value from the obvious centrally controlled inflation models eroding their wealth of these emerging hybrid Fiat/Asset backed systems of money?
Well a CBDC backed 100% by physical assets sounds ok, provided such assets are themselves reasonably stable and properly managed as reserves, with 100% transparency with prices dynamically adjusted/matched (liquidity pairs) given demands on r different eserve types. hmm.
Do you trust your National Regime to do that properly with their collective transparency track record?
Not likely. I certainly don't.
So what is the investor and for that matter the local economy to do to in the face of this Tsunami of Wealth Erosion coming your way?
The CRYPTO BUNKER- CBDC Proofing your Stores of Value and Local Reserves
Those running government elected or public servants will scoff at the idea of Local money and Treasuries being the way forward. As it aligns with their own ideologies of how the world should work, this is the last model of money they wish to see emerge to up end their tax and spend execution model.
CRYPTO BUNKERs imply we the crypto community are 'at war' with the current paradigm of money and, indeed we are.
CBDC Proofing implies we the investor and local economy need to be protected from CBDCs. Why is that?
Simply put, your stores of fiat value are heading into Wiemar Republic or Venezuela like inflation disguised with fake CPI Consumer Price Indexes which up until now were relatively stable , until a loaf of bread doubled in price in the last two years. Whoops. CPI never included your two largest purchase items, paid off over long time frames, your house and car.
The awakened (not WOKE) as they emerge from their long fiat slumber, now see something is terribly wrong with the existing system and early versions of the awakened have jumped into crypto and already cashed in. Yup the 'early crypto birds' ECBs are indeed driving Lambos and piloting giant yachts. Its what the materialistically inclined among crave to do. Each to his own.
Personally, I worry more about the continued dismantling of local and regional economies by invisible National and State level regimes driven by interests or than those we find locally in our communities.
Imo, we collectively, as small citiy, town and county economies together with the local investors in these areas, need Smart Crypto Bunkers and we need them fast, for everyone locally, to help reverse the dismantling process of the local economies and have everyone participate in a new era of wealth generation which goes beyond the history book fantasy known as the Fabulous Fifties (US only really).
Make no mistake, the next wave of "store of value' erosion is coming fast. Our local economies need to erect barriers right now to stop any more dismantling of their local economies.
Enter the notion of Crypto Bunkers, to likely save the day, locally.
Local Trustee Managed Micro Asset-Backed Crypto Treasuries- Local Money made good
Coins and Paper Currency which is 100% asset backed used to buy Goods and Services as a physical method of exchange have worked forever and, are still a relevant way forward, especially when one considers the current system we all use has a centrally controlled inflation model, run by people we might have elected, with their own self interests once they get in power. Yuk.
Ok Let's Talk local money in crypto terms. What does that really mean technically?
First, Crypto 'Nodes' participating in settlement Quorums needs to be able to select their physical peers (not just their numbered peers as #Maidsafe suggests with the SAFE Network). Settlement times, latency and robustness (completion in timely order) of the network physically and logically connected these Nodes is important and that infrastructure needs to be under the control of those elected to run the local economy by their local people.
Second, the crypto coins or tokens used in the local economy need to be backed up by a reserve of physical assets, where the reserve value is constantly updated in real time 'per epoch' of settlement.
Third, the inflation model of the money supply for the hybrid mix of coinage/paper/crytpo 100% backed by the value of the mixed asset local reserve must be automatically capped as to the max number of tokens allowed over time, per period to create a stable world of goods, services, asset and loans pricing.
Fourth the DEX Distributed Exchange mechanism must be contained within local boundaries of the community (cit, town, collections of towns in count and/or region, etc.) and be latched to side 'blockchains' on top of the distributed public ledger of layer 1.
Fifth, anonymity of users of this hybrid local money system must be protected yet also certified as valid with zero knowledge proofs automatically. ie- IF you aren't local get a local cert issued to do business, otherwise bugger off. That cert process is akin assuring you say who you say you are, and that the wallet registered to do business has been limited to assets supported by the local DEX and indeed indirectly the local multi-sig wallet treasury managed by the local people elected Local Treasury Trustee (likely a 2 or three different local Credit Unions contracted via RFQ bid awards determined by locally Elected officials periodically.
Sixth, Coinage and Paper money is printed and serialised locally ( even the coins using 3D metal printers tied to Serialisation systems updating the local distributed public ledger)
Seventh, Local DEXes can interconnect to other DEXes to allow settlement of transactions between outside parties sharing the same liquidity pairs
Eighth, Each local DEX set of Nodes are tied into a redundant cluster of oracles handling externally subscribed to incoming data feeds to feed the Local Matching Engine Clusters informing the Local DEX of the correct exchange rate multi-asset resourcing value , given supply and demand of the assets backing each coloured coin/token making up the Multi signature Local Treasury Wallet.
Ninth, If an EMP blast temporarily wipes out the online systems, the Paper records printed routinely of balances, allows for the local economy to print replacement online currency paper and coin to be picked up by the hardware wallet holder. IF and When the online system comes back online, its up to the hardware wallet holders to go to the Trustee window and exchange some amount of paper and coin into online electronic local crypto currency, to re-engage with online services as they become available.
Tenth, Local Digital Crypto Currencies via Air Gap Gatewaye access National CBDC liquidity pools for exchange purposes and other outside Central Exchanges and DEXes for Crypto, requiring the local citizen user and their local crypto hardware wallet to connect to the National Regime CBDC network to use that system for National or International settlement services, paying the associated transaction rate of the Nat CBDC service provider.
Eleventh, Local Money Systems Nodes run in multiple distributed Micro Containerised Data Centres connected only with under ground fibre and make no use of the existing Communications Protocols out there (No TCP/IP Suite use for the most part)
Twelfth, Wireless or Lifi access to the local system is by means of locally owned and secured pole and dunage mounts only.
Thirteenth, Local in home access is fibre or copper cable connected to the nearest adjacent Micro Data centre underground for best EMP 'Electro Magnetic Pulse' protection
Fourteenth, Micro-Centres are also located in conditioned underground bunkers or Bunkerized Basements (like what they have in Switzerland)
So there you have it the Local Crypto Bunker.
Building the Distributed Node CRYPTO BUNKER to create your SOVRINTown
Now which current Technology is relevant in building your local community's CRYPTO BUNKER?
Take your pick to local build your own DISTRIBUTED CRYPTO BUNKER "DCB' from
TK's short researched, but not exhaustive nor exclusive list below:
Distributed Public Ledgers -Layer 1
- Stellar, CARDANO, IOTA, SOLANA
- IOTA, Stellar, Cardano , Solana
Smart Contract Types
- ERC20,ERC751, ERC1151, CARDANO equivalents
Side Chain EVMs
- IOTA, Solana via NEONlabs, CARDANO, Stellar
Hardware Multi-Sig Wallets
- Ledger, Trezor
OSI Layer 2 MAC Node Fiber Network Switching
- PCIexpress 4.0 SmartNICs #Napatech, #Intel, #XYLINX, #Dolphinics
OSI Layer 2 MAC VM & Containerized Application Provisioning
- HashiCorp, Kubernetes, Rancher, containerd
Low Cost Fast Storage Sub Systems
- CloudProx TurboStorage
Micro Data Centre Containers
- Core Data Centres CoreBox
OSI Layer 1 Fiber Optic Transport Muxes
- Ciena, Infinera
- Extended Distance Std FlexEthernet MAC TDM Modules
OSI Layer 3 Exterior Gateway Router
- Anapaya SCION Router
3D Metal printing of Serialised Coins (if these guys can do it, so can a local entrepreneur)
Powdered Metal Suppliers (for the 3D Metal Coin Printing)
Print your own local Currency (Yes its happening, all the time, this article helps explain the trends)
That's all for now. ;)
TK over and out