ReEncryption Currency (REC)

ReEncryption Currency (REC) that recognizes Seigniorage (Profit) the Moment it is issued.

The Proposal:

Typical marginal cost (MC) curve overlaid with marginal revenue (MR) goes up but ReEncryption makes the marginal cost into "near zero" when ReEncryption transforms runtimely data consumption into data re-production as real output. Hence, ReEncryption Currency (REC) as money supply is born from the Zero, and its seigniorage as profit remains with individuals who can use it as financial resources for basic capital and basic income without issuing sovereign bonds and without increasing consumption tax. As the most interesting thing, ReEncryption Currency (REC) recognizes seigniorage the moment it is issued.

The Solution:

ReEncryption working in parallel as both of technology and economics combines Intel secure CPU SGX technology with ISO 20022/ISO TC307 blockchain technology into ReEncryption real output-based money supply that is provided with self-stabilizing property against inflation. Most of governments are now facing global financial crisis like the US, Japan, Germany. Hence, ReEncryption real output-based money supply is going to lead us into sustainable finance with the higher-order solution, that is, if money supply increases at the same rate as real output, then the prices will stay the same.

The Basic Model:

If a government provides copyrighted code/data worth monthly US$2,000 per user assuming population of 100 million, ReEncryption transforms runtimely code/data consumption worth US$2,000 into code/data re-production as real output worth US$2,000, while transforming zero marginal cost worth US$2,000 into ReEncryption Currency (REC) as money supply worth US$2,000. Hence, the government will receive REC worth monthly US$40 billion and yearly US$480 billion as secondary use fee 20%, individual user will receive REC worth monthly US$1,600 and yearly US$19,200 as seigniorage (profit) 80% and users as a whole will receive REC worth monthly US$160 billion and yearly US$1.92 trillion that can be used as financial resources for basic capital (e.g., bitcoin investment) and basic income (e.g. social security) without issuing sovereign bonds and without increasing consumption tax.

Fig. shows a Web3 P2P Style but Web2 Cloud Style is also available.

AI Worklord:

The code/data means the AI worklord performing as the entire currency issuance system, that is, if a government provides the code/data worth US$ 2,000 per month per user as a public work project, each user sequentially purchases code/data for US$2,000, consumes it, reproduces it and resells it for US$2,000. In the process between consumption and reproduction, US$ 2,000 of currency is generated from zero marginal cost and its 80% i.e. US$1,600 as seigniorage is transfered directly to user's bank account. The 20% i.e. US$400 as 2ndary use fee is paid to government. Hence, assuming the US population 335 million, total US$8.04 trillion can be yearly achieved as new financial resource to pay off the US debt $36 trillion in 5 years.

The US Crypto Bills:

1. H.J.Res. 109 (SAB 121) - President Biden vetoed.

2. H.R. 4763 (FIT21) - He will sign.

3. H.R. 5403 (CBDC Anti-Surveillance State Act) - He will veto.

4. H.R. 8421 (Federal Reserve Board Abolition Act) - Under process in Congress.

Differences between Harris (Biden) and Trump make CBDC difficult due to presidential election in November but G7 has the potential to adopt REC as fiat-money for paying off the G7's national debts such as the US debt $35 trillion. Hence, BIS, IMF, FRB and G20's Central Banks also understand fully to have no choice but to adopt REC for paying off the gigantic debt piles they have amassed.

Fig. shows Web2 Cloud Style but Web3 P2P Style is also available.

The Patent:

It is often said that capitalism is eclipsed by the zero marginal cost society but as long as ReEncryption runs on Intel CPU, the capitalism remains with us in prosumer-based zero marginal cost society backed by basic capital and basic income.

The Future:

As the most interesting monetary policy, REC recognizing seigniorage the moment it is issued out of zero marginal cost, is going to make the algorithmic central bank unnecessary when it replaces quantum teleportation around 2030 to 2035.