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  • Writer's pictureRyan Watson

How to pay without money

With credex you have the power to make your word stronger than money, and become free of dependence on the global financial system.

With credex, you can base your transactions on peer-to-peer trust instead of money. By doing this, we can sidestep inflation. We can build economic resilience for ourselves, and for our communities. We can build wealth. And it's simple, it's fun, and it's deeply revolutionary.

It might sound incredible… it might sound impossible. Money is complex, vast, powerful, and it's been around for a very long time. But the truth is that it's not impossible, it's just unfamiliar. And it's actually not novel and strange, it's centuries-old principles applied in a new way.

Credex complies with laws and regulations in every jurisdiction, because it's just accounting. It's auditable. It's GAAP compliant.

By the end of this post you will understand the concept, and see how to implement it. The next step is go to, open an account, and do it for yourself. Try some low risk transactions, see what happens, and build your own confidence and your own trust in the system, and in your counterparties.

The Credex Principle

The most basic version of the Credex Principle is very simple:

If I owe you, and you owe me, then we're square.

We can cancel our debts without money changing hands.

If Alice owes Bob three dollars and Bob owes Alice three dollars, we can cancel those debts without money changing hands.

If I owe you, and you owe them, and they owe me, then we're square.

And we could also clear those debts without money changing hands.

If Alice owes Bob three dollars, and Bob owes Charlie three dollars, and Charlie owes Alice two dollars, we could cancel part of each of those debts. We could subtract two dollars from each, without money changing hands.

That completely clears the debt between Charlie and Alice, but leaves Alice owing Bob a dollar, and Bob owing Charlie a dollar.

So now let's get to the practical application. When you first open your account this is what your ledger will look like empty:

I'm buying a walking stick from Bilbo Baggins. This is my first payment by credex:

I owe Bilbo Baggins 79 dollars. There's a few things to notice about this. First is the promise phrase: "Ryan Watson promises to provide Bilbo Baggins with 79 Canadian dollars worth of value by July 5, 2023."

That's my promise, that's what Bilbo is accepting, and that's what I'm being held to.

The large bar across the center is the the transaction health, and the bar near my picture is my own personal account health, which presents a total of all my transactions. The teal colour on these health bars indicates unredeemed promises; promises made but not yet fulfilled.

Here's my ledger with four transactions:

You can see that the totals are showing up in Credexes Payable, Credexes Receivable, and Net Credex Balance. These are two payments that I've made, and two payments that I've accepted. Each of these credex IOUs are currently outstanding. As more of these transactions are created across the system, it starts to find the loops for us. If I owe Katniss, and Katniss owes Bilbo, and Bilbo owes Bob, and Bob owes Alice, and Alice owes me, the system will find that loop and redeem credexes.

This is what it looks like when a loop closes:

That gold color represents the redeemed credex. So $15 of these two transactions have been canceled against each other. They've both been redeemed.

If we look at the transaction, we can see the fifteen dollars that I have made good on showing up on the transaction health bar, as well as showing up on my overall credit score. We can also see the transaction that it has been cleared against. Fifteen of this $79 that I owed Bilbo Baggins has been cleared by $15 of the value that I provided to Katniss Everdeen.

When a loop closes, Credexes Payable and Credexes Receivable are each reduced by an equal amount, and net credex balance does not change. We balance a payable against a receivable, and the net does not change.

Here's what that credex looks like once it's been cleared. Katniss no longer owes me anything. There was a promise, it has been fully redeemed, indicated by the gold bar, indicated by the "Cleared."


The big question is, "How can I trust that the loops will close?" And there are two answers to that:

  1. Trust your counterparties.

  2. Keep transacting.

You're not really trusting that loops will close, you're trusting a specific person to deliver on a specific promise. The credex ecosystem helps them do that, and helps you do that at the same time, but the trust is between humans. The trust is between counterparties. And if the loops aren't closing, then that's the moment to connect, counterparty-to-counterparty, and say, "How can we make this work?" It's in no one's interest for this transaction to default (to demurrage). It's in everyone's interest for us to find a way to make good on this, so how do we do that?

The entire credex ecosystem is lined up behind you in the effort, because default is not good for you, it's not good for your counterparty, and it's not good for anyone else in the system.

And the more transactions are in the system, the more potential credloops there are, and the more places that the system will be able to find those loops and close them. More transactions, higher volume, higher network density… that's helpful for everyone.

So keep transacting, and the loops will close. It will probably happen without your effort. But if it is approaching demurrage, you will be able to find a way to make good on it. Credex works to make it almost effortless for you and your counterparties to deliver on your promises. But if you have to apply yourself consciously to make good on a promise, credex will be in your corner, making it easy.

Marketplace is live

So how do we make this real?

The marketplace is live in the credex app. List an item or a service. Make contact with a seller or service provider. Make an offer. Make a payment. Make good on your credexed promise by selling goods and services on the marketplace.

Start using credex to exchange real value, to buy the things that you need and want, and to provide real value to others.

And as we do that we build our wealth, we build our resilience, we build our trust, and we build our freedom.

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