Virtual Velocity Theory

Virtual Velocity is a term we use to describe alternative digital currencies circulating at speed in the collaborative economy.  Inspired by the nascent results of the Worgl experiment, we ask whether, in a modern context, decentralized digital local currencies could complement rather than compete with Central Bank monetary policy?  

The Austrian town Worgl, conducted an experiment in the Great Depression that worked well for 1 year, until it was shut down by the Austrian Central Bank, as they feared it would undermine their authority. The Worgl experiment was based on the velocity of money theory developed by Silvio  and works counter intuitive to prevailing monetary policy theory.  Quantity theory of money ie QE that floods the system with money, while it may have helped stabilize the world economy, since the financial crisis, it has not brought the much hoped economic  prosperity for all.

The reality is that society should not keep on bailing out a failed banking system when the society are asked to accept "Austerity," as the price for bailing out the failed  monetary system. A radical re-think of the monetary system is needed.
Bitcoin has opened up the discussion, but is not the ultimate holy grail of a better system. 

We reach out to the brightest coding brains in the world to collaborate with us and construct a new decentralized  digital currency system.

I am an MA student in Social Entrepreneurship at Goldsmiths University of London and plan to base my future PhD in economics on Virtual Velocity Theory.

Please conduct me Toby Chambers : ie301tc@gold.ac.uk

From an economic point of view

Traditional paper money is a symbolic relic. Digital currencies stored securely and transacted via digital wallets using smart-devices will be normative. There will be an increased emphasis on localism for equitable economic and social development. Virtual Velocity proposes the following theory of change:

Virtual Velocity Theory

Ø  Increasing fluidity and velocity of money using decentralized local digital currencies stimulates local demand.

Ø  Local demand translates into higher employment and in turn reduces economic and social deprivation.

Ø  Local digital-currencies offer real long term social innovation, as root causes of economic and social deprivation are addressed.

Ø  A collaborative economy underpinned by local access to digital forms of money increases the tendency to fairly value those interactions.