Stable Currencies with Slow Money

Kevin Cox
2 min readMay 5, 2017

A stable currency with slow money is one where there is no devaluation of money and where money only moves when we exchange value in goods and services.

In contrast, today’s currencies have targetted inflation and the value of money transferred is two orders of magnitude of the value of goods and services transferred. Currencies fluctuate in value one with another and money movement swamps the transfer value of good and services.

We can turn unstable currencies with fast money into stable currencies with slow money by removing the time value of money. Volatile currencies happen because people who own money try to keep it from transferring value. If they can keep it safe and increasing in value with the passing of time they are in a winning game for little or no effort. Money keeps moving without the transfer of value as those with money go searching for places where it is safe and increases more rapidly than they can spend it. The movement of money becomes accentuated because money can increase in value simply by being transferred to a safer higher return place. The world of finance becomes a gigantic casino where people place bets on where to put their money. When one successful better bets others rapidly follow suit and the odds change.

We can slow money movement by stopping giving people money while it is at rest. We give people more money when value in goods and services are transferred. It is only possible to increase value by transferring goods and services. An increase in money tokens is a virtual increase in value and it should be confirmed when goods and services are transferred. One way to achieve this is to repay loans with more goods and services for the same amount of money. One way is to replace interest with discounts on goods and services as the way to earn a return on loans.

Replacing interest means that money does not earn money until goods and services are delivered. In turn it automatically stops people placing bets by lending for capital gains. Instead they lend for long term increases in goods and services.

We can still have interest on capital but the interest is paid after the capital is repaid. Fast money pays the interest first then the capital.

We can use this principle to replace ownership where a return depends on dividends and/or capital gains with loans for goods and services at a discount.

When the amount of money moved is two orders of magnitude or 100 times the transfer of value of goods and services even a small cost for each lost bet translates to a large value of goods and services. It is likely that transfers of money after goods and services will result in cost savings of 50% of the loans or investments that use the approach.

Changing to Slow Money is achieved incrementally and one loan at a time.



Kevin Cox

Kevin works on empowering individuals within local communities to rid the economy of unearned income.