quoting note1rsv…zhkf🤔
The monetary rules in Sardex reflect the issuance mechanism known as “mutual credit” in the complementary currency literature. Users start with a zero balance on their accounts but are granted a credit limit to which they can go into a negative balance on their account, akin to the overdraft facilities on conventional bank accounts, but without any interest charged on negative balances. When they make a purchase with Sardex, their account is debited by the amount of the purchase. Conversely, when they make a sale, their account is credited. As transactions always involve two member accounts, one that is credited and one that is debited by an equal amount, the sum total of all balances is always zero. There is no central account of the operator of the system that is involved in the currency issuance or transactions. In this model, the aspect of issuance that is described above as determining the maximum amount of currency in circulation thus becomes a function of the aggregate credit limits set for all user accounts.
https://monneta.org/en/sardex/
exspiravit on Nostr: Is this banking without banks? ...
Is this banking without banks?