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  • Writer's pictureRyan Watson

The power of credex

Updated: Jun 19, 2023



Credex has the capacity to help members overcome specific challenges as they transact and build wealth:

  1. sidestep inflation

  2. limitless

  3. platform for innovation

sidestep inflation

It’s the tools for innovation that enable members in the credex ecosystem to trivialize the problem of inflation. Sidestepping inflation, in the credex ecosystem, is not a hard thing. Inflation is not really a challenge in the credex ecosystem.


In the credex ecosystem, denominations are handled in a way that gives members incredible power and flexibility. A credex is a promise to provide value. It’s an IOU. It could be IOU $1,000 Canadian dollars, or it could be IOU $1,000 American dollars. But it could also be a formula. It could be IOU $1,000 American dollars multiplied by a daily CPI adjustment.


So in a region of moderate, or what we would consider “normal” inflation, that could be a solution that would enable members to sidestep inflation.


If you’re in a zone of hyperinflation, if you were in Caracas, Venezuela in 65,000% annual inflation a few years ago, the inflation indexes themselves lose any meaning with regards to day to day transactions. When you go to transact in an environment of hyperinflation, you have to be thinking about relative values, not numbers. You have to be thinking about how many loaves of bread is my time worth? How many litres of gasoline? How many loaves of bread is this item worth? Because the numbers in the currency change daily. An economic reference point that fluctuates in value to such extremes is useless.


But with credex you don’t have to care what the currency does, because we can denominate in whatever we want. We can denominate in loaves of bread. We can get a bread value index. We can denominate in loaves of bread. We could isolate that to a specific city. An index of bread in Caracas, Venezuela. Daily price. And we can enable members to transact in that.


limitless

Credex enables value creation wherever there is trust between humans, wherever there’s trust between counterparties. We’re used to thinking that the money supply has to be managed from a technical perspective. But with credex, that just doesn’t apply. Credex exists to the degree that counterparties who trust each other want to enter into value-building transactions. It exists exactly to that degree, no more and no less. Because each contract is a new promise between counterparties to provide value.


So there are no situations where there is a deal that could be done, and we can’t do it because we don’t have money. Now we all know the feeling of not having enough money to do something that we want to do. But where that really hits home is around the margins of the economy, and especially around the margins of the global economy.


There is not, and there cannot be, enough money in circulation to provide for every need, or we get hyperinflation. But there can be enough credex. Credex is limitless, so wherever there is trust between counterparties around the margins of the economy, there’s an ability to transact. There’s an ability to add value for each other. The only limit is trust, and it’s an individual limit determined by each specific counterparty.


platform for innovation

The ability to trivialize the problem of inflation, and the ability to enable transactions in places where money simply can’t reach are just two features of an innovation platform that can enable counterparties all over the world to be connected directly with each other, in the ways that make sense for them. In the specific contracts that make sense for them.

The possibilities of these contracts are vast:

  1. I owe you $1,000 Canadian dollars.

  2. I owe you $1,000 US dollars.

  3. I owe you 4 shares of Apple stock.

  4. I owe you one ounce of gold.

  5. I owe you half of a Bitcoin.

  6. I owe you 50% of the revenue generated by a specified company.

  7. I owe you 20% of the equity of a specified company.

As value builds within the ecosystem, these kind of contracts will enable value to circulate and capital can grow, in a smart-contracted, transparent, auditable, very clear way. The credex ecosystem is a capital-friendly, human-friendly, planet-friendly environment where value and capital can circulate and recirculate through the economy.


And all this happens entirely without money. We’ve sidestepped it. We just don’t need it.

With credex, we can transact through what from an accounting perspective is almost like a quantum tunnel on your balance sheet, connecting you to your counterparties. An auditable quantum tunnel. You can see what’s happening, it’s not a black box.


The potential for innovation is truly vast. These are a few initial applications of this principle, but as it’s released into the wild, and humans get to use it in the ways that work in their situations, incredible diversity of solutions is sure to show up.


Let’s see what we can do together.

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