The Elektro and the Sun

Electricity backed money is a good idea? Why the Sun? The presentation of Elektro What do we need? What would be the benefits?

This concept has been made to create awareness of the possible benefits of an electricity backed money.
Is electricity backed money a good idea?
Todays money creation process does not require any sort of backing whatsoever. If we are going to back the money with energy generating capability, even if just partly, we would get a step forward to have some real value to our money and not just promises. We really need to think of some sort solution because printing money out of thin air causes huge inequality and imbalances in the monetary system. Traditionally, gold secured the value of currencies. Gold has all the properties necessary to keep its vale over long periods of time. Unfortunately however, the general population has limited amount of gold within their possession. To get gold into the economy, one needs to mine it, which is an expensive process, so only a fraction of the population is able to do it. In this case, the public has no access to the money creation process. On the other hand, fiat money can be created out of thin air which require no effort compared to mining gold. The only reason people can't take part in this process is that the law does not allow them to do so. If electricity would be money, then if we want more money, we would need to generate more electricity. It is somewhere between mining gold and printing money out of thin air. We could not create money at our will but we could do it at a personal level too, thanks to solar panels. In this way, money creation would be a matter for everyone, not just for the banks. Since energy generation cannot be monopolized, we would be a big step closer to a decentralized monetary system. Another very important aspect of the new money would be that the value of energy is universal. 1 kWh is 1 kWh wherever you go, so it could be easily accepted globally.

Why the Sun?

Energy wise, the Sun has vast potential. Every 14 seconds it provides us enough energy to satisfy mankind's demand for a whole year. From a human perspective it seems unlimited. If we would cover one tenth of a percent surface area of the globe with solar panels, then we would have energy for everything including industry and transport. The price of solar panels are in decline in long term. It is down by 50 percent at every 10 years in the last three decades.

In Hungary, it takes 16 years for a solar panel to pay itself off. If prices continue to decline at the same rate, in 10 years' time this will take less than 10 years.

Presenting of the Elektro

1. The state creates a new monetary unit, the Elektro. The value of 1 Elektro will always be 1kWh. 2. The state gives interest-free Elektro loan to the citizens for putting up solar panels. 3. Therefore the households start to create electricity. 4 The state pays for it with Elektro, so the citizens can pay out the loan. 5. The state sells this electricity on the market,... 6. Then spends the money on state owned solar farms to secure the value of Elektro. 7. The state accepts Elektro as tax payment.
(The model could be applied to the whole renewable sector.)

What do we need?
finance law

Finance We have to create a new monetary unit, the Elektro. In this example, 1 Elektro has to be 1kWh. Interest-free Elektro loans have to be given for the supplicant to install solar panels to generate electricity. The loan will be written down at the rate at which the installations provide power. Law - The state declares that if an individual generates renewable energy, the state will purchase it with Elektro. (1Elektro = 1kWh) - The state obliges the energy companies to take this energy from the home owners and mark it as state property. - The state declares that the income from selling the purchased electricity will go towards building renewable energy farms. These farms will serve as backing for the new monetary unit. - The state declares that it will accept Elektro as a means for paying tax, thereby ensuring its general acceptance.

What would be the benefits?

Energy independence becomes reality. The economy is picking up, decreasing unemployment.

Energy independence becomes reality Energy independence would be a reality on both at state and individual level. Since the system itself is very decentralized, the energy and money supply would be more resilient because there is no single point of failure. To minimize the environmental impact of energy generation, only renewable energy sources could meet the requirements of the loan. The economy is picking up As the new interest-free money reaches the real economy, it will get into motion. The Elektro first of all is an interest-free loan to the renewable energy sector. That sector will gain strength quickly. The investment will flow to the area along with the required workforce.