ER Editor: Quantum technology, including a quantum financial system, is definitely the next big thing and, according to some sources, is designed to be an entirely good thing for humanity, representing the Real and Better Reset (our capitalization). To that end, we’re going to be exploring the topic as best as we are able, bearing in mind its complexity, with few people so far really understanding what it is. For starters, it meshes physics with economics …
We’re kicking off here with a veteran of the topic, Gunther Sonnenfeld, whose work can be found on Medium. We’ll be publishing more from him.
The takeaways we get from this article so far are:
- There is a moral vision of what banking should be about, namely –
- to ‘protect all parties from corruption, usury, and manipulation within the banking system and ensure banks are monitored and protected’
- Beneficial projects can be financed without the interference and ultimate approval of ‘financial middlemen’ or banks, who would also take their cut. That is to say, the direction and vision of the world doesn’t depend upon the financial class
- ‘Value’ takes on an entirely different meaning, where it isn’t some arbitrary financial number established by a power elite in backrooms but is based on real-world value: ‘financial assets … are not separate from their sustained utilities in the natural world, to include any and all environmental variables which ultimately determine their value.’
- Will this ‘reset’ abolish old systems of debt and credit that have traditionally shackled us to those who have owned and controlled our money supply? Is this an interest-free system? ‘In the case of a non-interest based system, it must be established that a proper “reset” entails no dependencies on credit or debt that result in the “overfinancialization” of assets.’
- It is a gold-backed system, fully surveilled and accountable: The coins themselves and the virtual coins will have barcodes (for ownership) and GPS tracking devices (for location).
- The complex AI system QFS utilizes carries its own human-contamination risks, mentioned at the end of the article.
A new system is emerging that, with the proper structuring, puts financial control back in the hands of the people.
The Quantum Financial System (QFS) has been building a Virtual Private Network (VPN) for the Cross-Border Interbank Payment System (CIPS).
It’s a network based on sovereignty and commerce.
This author recently outlined the primary components of the real financial reset, the details of which are behind this effort, to include documentation (proof) of its relevance and importance.
To coordinate a national research effort encompassing Federal agencies, the academic community, and industry leaders already underway, The White House National Quantum Coordination Office released A Strategic Vision for America’s Quantum Financial System Networks, in February of last year (2020).
In short, the QFS provides “pristine clean integrity” in the movement of funds from central banking sources to destination accounts.
This means that the key benefit of the QFS is to protect all parties from corruption, usury, and manipulation within the banking system and ensure banks are monitored and protected with regard to the agreed upon contract of the transfer fund process.
As this author has also outlined, this system can also support economic development that does not involve banks.
It is critical to note that with the proper ledgering system in place, national banks, regional banks and signature banks can play a crucial role in large-scale infrastructure development (roads, schools, urban and rural planning projects, etc.), while independent groups can build their own components to vital infrastructure that are unencumbered by financial middlemen, such as small farming co-ops, alternative energy grids, and alternative supply chains.
Given that 92% of supply chains are now decoupled, asset inflation is likely to eclipse 20% in the coming months, over 60 million businesses worldwide have shuddered due to the “pandemic”, and underemployment and youth unemployment rates are at all-time highs, we have reached a point at which locally sustained economic ecosystems are perhaps the only way forward in achieving economic health that supports people of all walks of life and cultural backgrounds.
This author’s framework called Smart Ecologies is one such method for the design and development of these ecosystems.
In order to support this shift, it is prescient that we approach our uses of currency and finance through a radically different lens.
And it begins anew in how we control and manage our own data.
As we’ll see in a moment, the QFS does not come without its design challenges, namely that it is an AI-enabled consensus system.
As pointed out in other posts, human participation in counter party agreements must be managed by selective consensus, to avoid unnecessary obfuscations of decision-making power.
QUANTUM FINANCIAL MECHANICS
Quantum finance is an interdisciplinary field, applying theories and methods developed by quantum physicists and economists in order to solve problems in finance. It is a branch of what is known as econophysics.
While quantum computing methods have been in existence for quite some time that use physics first principles to understand better ways to conduct and manage monetary flows, it is actually the math that matters in this new scenario.
In the case of a non-interest based system, it must be established that a proper “reset” entails no dependencies on credit or debt that result in the “overfinancialization” of assets.
In other words, we don’t need to add unnecessary 1s and 0s to our transactions, nor in the ways we create or produce assets we wish to redistribute and from which we generate revenues autonomously.
To expand on this, it is also important to understand that financial risk must be amortized at the asset level.
That said, the real value of blockchains or ledgers has less to do with the speed of transactions, and more to do with the responsible management of resources as they are needed, when they are needed.
Which brings us back to the use of AI or artificial intelligence.
Automations using AI can be used to streamline cost efficiency gains in supply chain production, and AI-driven calculations can be used to amortize the risks due to side effects (externalities) which spring from assets that are created, financialized and distributed for market needs.
Bear in mind that the public or commercial uses of AI for these types of operations are still quite nascent, and so we need to proceed with great care and caution in how we manage natural resources for their regenerative benefits, and in the preservation of their long-term uses.
Much thought and work has gone into this, some of which is detailed here.
In short, we must think of financial assets as those which are not separate from their sustained utilities in the natural world, to include any and all environmental variables which ultimately determine their value.
Beyond the AI and natural resource implications, it is purported that a FIAT cryptocurrency will convert into a gold-backed Basel III, IV and V compliant digital coin.
It is also purported that a fungible handbasket of gold, silver, palladium and other precious metals can collateralize this unit of account.
The coins themselves and the virtual coins will have barcodes (for ownership) and GPS tracking devices (for location).
The ACC (Asset Chain Collection) is a “Distributed General Ledger”. It’s a tool of the A.I. asset digitization for global applications. It is referred to as “The A.I.Exchange”.
Between mainstream tokens in the market with asset-standard tokens, the Asset Collection Chain jointly forms and documents the digital asset interchange object — SDR digital currency.
Each global “node” establishes a “regional” General Ledger Token (GLT) for regional circulation and this the digital currency SDR (Special Drawing Rights) will be the main exchange coin along with tokens of each international node’s general ledger token on the international exchange.
In this “monetary ecosystem,” each node’s token can use GLT (General Ledger Token) to realize regional circulation and each GLT can use ACC to realize international circulation.
As this author has pointed out, there is a potential downside to tokenized digital currencies, mainly in that they must be designed to be fully quantum tolerant.
In other words, the goal is to monitor and preserve natural value of any asset by amortizing risk in real-time.
Right now it is unclear as to how exactly the QFS is being ledgered, and with what specific ledgering system.
Rumors circulated later year (2020) that XRP was being used, but that appears to be conjecture, given its extreme volatility.
All the while, the institutional buy-up of Bitcoin inventory is a signal that there is real battle over control of the financial system.
Perhaps it is neither XRP nor a speculative commodity like Bitcoin that, alone, will provide the underlying structure for the real reset.
Starting in 2015, a Task Force was set up (the QIAT) which received 25 proposals for a new ledgering system, 16 of which were selected for consideration.
Task Force members also provided comments to the QIAT on the assessments of proposals against Effectiveness Criteria.
Overall, the Task Force was in agreement with the QIAT assessment of submitted proposals as demonstrated in the scoring summary below. There is strong alignment overall between Task Force ratings and QIAT ratings. Across all proposals, Task Force members strongly agreed or agreed with QIAT ratings at a rate of 90%.
We have yet to see which group or groups were chosen, and if a completely new ledger was created.
Regardless of how this plays out, what is clear is that there are many options for ledgering and the structuring of assets that are commensurate with the varying conditions we face across geographies.
This author sees a global currency stack emerging that can address these socioeconomic and socio-ecological variants.
TO RESPONSIBLE PARTICIPANTS COME THE SPOILS
“Crypto-biases” aside, something monumental is about to happen.
It is purported that the QFS “reigns supreme” in photonic technology at 3.5 trillion frames per second.
It replaces obsolete IP-dynamic routing with the true physical GPS authentication between sender and receiver routing, while upholding “100% financial security and transparency of all currency holders”.
As mentioned, the AI component is a concern, since AI systems — whether through deep learning, natural language processing or quantum imaging — mimic human and biological behaviors.
As we all can recognize, human beings are not the most self-responsible in terms of gut-checking their proclivities toward greed and more authoritarian control of resources.
That said, merit-based approaches to stewarding resources with selective consensus are paramount, and they are available.
These are wildly exciting times.