Announcing the Federal Reserve of WIP centralized coin

[FederalReserveofWIP]

Dear Bitcointalk Community,

I am very pleased to announce today the Federal Reserve of WIP centralized coin (parity with $0 during introduction.)

This coin is the opposite of decentralized crypto currencies, and is completely centralized.  Transactions are recorded (currently by hand) in a centralized way.  (Similar to the existing banking system.)  The transactions are recorded here.   During ramp-up, the coin has parity with $0 and may, by the agreement of users, ONLY be used in transactions worth precisely $0, such as in exchange for any favor that has a strict value of $0.  It may not be used to conduct transactions of any value. (Other than $0.)  Discovery of transactions in other value amounts can result in forfeiture of the coins.

All transactions with the coin are recorded in this thread.  The actual WIP balances exist as set by The Federal Reserve of WIP and can be modified at any time for any reason or for no reason with or without notice.

The email address for the Federal Reserve Coin is: federalreserveofwip@gmail.com and the public ledger is this announcement thread.  There is no web site up yet, however The Federal Reserve of WIP will attempt to be responsive in this thread and by email.

Please note that this is not satire, but a demonstration.  The Federal Reserve of WIP wishes to show some of the operation of the real-world banking infrastructure, and its benefits.

WIP coins have the following current properties:

- WIP balances exist by fiat.
- WIP coins are inflationary and can be created by fiat.  This puts some inflationary pressure on holders of WIP coins.
- The coins are not protected by any technical scarcity.
- There is no automated remittance network, and, similar to bank transfers, must be entered manually by someone. (The Federal Reserve of WIP.)

In order to alleviate some of the gaming and attacks on currencies, WIP stands for Internet Points with a parity price of $0.

WIP coin terms and conditions (revision 1):

Definitions: WIP coins are operated by the Federal Reserve of WIP, which can be reached at: federalreserveofwip@gmail.com    The Federal Reserve of WIP operates by fiat and has no obligation to any 'holders' of WIP, can modify, wipe out, or take any action with any balance, at any time, with or without reason and at its sole discretion.  It accepts no obligations or liability of any kind.

The Goal of the Federal Reserve of WIP is to demonstrate the benefits and pitfalls of a Federal Reserve system.  In order to keep from any damages of any kind, WIP coins may only be used in transactions worth exactly $0.  This keeps it in the domain of Internet Points without worth, like in-game resource points, and allows the demonstration of the Federal Reserve system without real-world consequences.

Modification.  These terms can be retroactively modified with or without notice.

Your expectation as a holder of WIP coins: you are entitled to nothing and have no expectation of any kind, except that the Federal Reserve of Internet Points can act or not act, modify or not modify benefits however it sees fit with or without reason or oversight.

In case of errors, for example, it can retroactively rewrite a history of transactions, reassign points, or do any other acts and things at its sole discretion.  It is completely sovereign with regards to WIP.

Here is the current public ledger.

* * * * * * * * * * * * * * * * * * * * * * * * *
FEDERAL RESERVE OF WIP PUBLIC LEDGER AT 11:06:10 p.m. GMT Wednesday, 17 December  

History:
At Wednesday, 17 December 10:55:54 p.m. GMT, the Federal Reserve of Internet points hereby creates 100 WIP.

Total WIP in existence: 100 WIP.

--

Statement of Account.

Possessors of WIP:
- The Federal Reserve of WIP.  Possesses 100 WIP.

Repayment obligation:
- None.

Other paper/scrip: none.

* * * * * * * * * * * * * * * * * * * * * * * * *

Next steps.  If you would like to possess WIP, this can be created for you by the Federal Reserve of WIP.  You must agree to be a financial institution and to repay WIP with interest.  This will then be lent to you.  This is not a freebie.

You must agree to all terms, which can be modified at any time by The Federal Reserve of WIP.  In particular you must agree not to use WIP in any transaction with any value other than $0 or all WIP in your account may be confiscated without notice, that the Federal Reserve of WIP has complete sovereignty and discretion and that all its decisions are final.

If anyone would like to possess WIP, simply email federalreserveofwip@gmail.com (or respond here) with the amount that you require.

Current rates:  The Federal Reserve of WIP currently has a 5% interbank lending rate.

Come one, come all.  Let's explore the federal reserve system.  Simply ask and ye shall receive.  (As in the real-world Federal Reserve system, WIP points must, however, be repaid.)

[FederalReserveofWIP]

Notice:

As chairman of the Federal Reserve of WIP I am hereby taking a stipend of 0.5 WIP for this month.  If there are public policy objections you can voice them here or in the Economics thread.  The 0.5 WIP stipend is my own to use however I want.

Chairman,
Federal Reserve of WIP


* * * * * * * * * * * * * * * * * * * * * * * * *
FEDERAL RESERVE OF WIP PUBLIC LEDGER AT 11:58:37 p.m. GMT Wednesday, 17 December 2014   r2

History:
[1] Wednesday, 17 December 2014 10:55:54 p.m. GMT, the Federal Reserve of WIP  hereby creates 100 WIP.
[2] Wednesday, 17 December 2014 11:54.37 p.m. GMT, TRANSFER from Federal Reserve of WIP -> Chairman. MEMO: Federal Reserve of WIP Chairman stipend for December 2014. AMOUNT: 0.5 WIP.

Total WIP in existence: 100 WIP.

--

Statement of Account.

Possessors of WIP:
[1] The Federal Reserve of WIP.  Possesses 99.5 WIP.
[2] Chairman, Federal Reserve of WIP (personal).  Possesses 0.5 WIP.

Repayment obligation:
- None.

Other paper/scrip: none.

* * * * * * * * * * * * * * * * * * * * * * * * *

[Pecunia non olet]

now everyone has lost their mind 

[FederalReserveofWIP]

The Federal Reserve of WIP is closed for the day and will resume operations and public ledger commitments during business hours tomorrow.  Thank you for your understanding.  You can always write to us at: federalreserveofwip@gmail.com and your letters will be handled as soon as possible.

Best regards,

Federal Reserve of WIP

[jonald_fyookball]

ok, can I borrow some WIP then

[billotronic]

How much for a dime bag?

[Sir Alpha_goy]

.

[FederalReserveofWIP]

ok, can I borrow some WIP then

I've PM'd you asking the amount you would like to borrow.  If you respond and the request is approved it can be 'wired' (added to the public ledger) tomorrow.

[FederalReserveofWIP]

How much for a dime bag?

Dear billotronic,

Currently you are not allowed to make transactions against things of value, but a 'dime bag' that you might get (for free) at a party (where it's legal) may be a good example of a transaction that is allowed, if it is a favor and free, rather than having value.  The parity price of WIP is therefore $0, which is a condition for using it.

For some anchor points, my stipend as Chairman of the Federal Reserve of WIP was 0.5 WIP for the month of December (half of a month.)  So, you could always try to estimate based on a percentage of a (volunteer) stipend of the Chairman of the Federal Reserve of WIP.  i.e. take 0.5 WIP and divide it by the percentage of a (volunteer) stipend of the Chairman of the Federal Reserve of WIP for two weeks.  As long as you are not transacting against anything actually having value, this is acceptable.

Another way to estimate would be based on a percentage of the total WIP money supply.  This is currently 100 WIP in existence.  (However, it should increase over time as WIP is created and lent out, as a slightly inflationary fiat currency.)

This actually makes borrowing WIP fairly smart, as there will be more WIP in the future and one would expect it to be easier to repay later.  (Also the Federal Reserve of WIP will still be lending WIP later.)

I hope you have found this response useful.

Thank you for your interest.

Best regards:

Chairman of the Federal Reserve of WIP

[FederalReserveofWIP]

We are setting aside 0.025 WIP for kingkedi and 0.025 WIP for jonald_fyookball.  These transfers are to two accounts still held by Federal Reserve of WIP pending agreements with kingkedi and jonald_fyookball at which point it will be transferred to them.

Chairman,
Federal Reserve of WIP


* * * * * * * * * * * * * * * * * * * * * * * * *
FEDERAL RESERVE OF WIP PUBLIC LEDGER AT  3:17:12 p.m. GMT Thursday, 18 December 2014   r3

History:
[1] Wednesday, 17 December 2014 10:55:54 p.m. GMT, the Federal Reserve of WIP  hereby creates 100 WIP.

[2] Wednesday, 17 December 2014 11:54.37 p.m. GMT, TRANSFER from Federal Reserve of WIP -> Chairman. MEMO: Federal Reserve of WIP Chairman stipend for December 2014. AMOUNT: 0.5 WIP.

[3] Thursday, 18 December 2014 2:55:50 p.m. GMT, transfer from Federal Reserve of WIP -> (set aside for kingkedi, currently under Federal Reserve of WIP Account).  MEMO: this is being extended to kingkedi at an interest rate of 0.287% for 3 weeks.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP  *

[4] Thursday, 18 December 2014 2:56:21 p.m. GMT, transfer from Federal Reserve of WIP -> (set aside for jonald_fyookball).  MEMO: This is being extended to jonald_fyookball at an interest rate of 5% p.a. for a duration to be confirmed.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP  *


Total WIP in existence: 100 WIP.

--

Statement of Account.

Possessors of WIP:
[1] The Federal Reserve of WIP.  Possesses 99.5 WIP.
  of which:
      99.45 WIP main account
      0.025 WIP reserved for kingkedi
      0.025 WIP reserved for jonald_fyookball

[2] Chairman, Federal Reserve of WIP (personal).  Possesses 0.5 WIP.

Repayment obligation:
- None.

Other paper/scrip: none.

* * * * * * * * * * * * * * * * * * * * * * * * *

[FederalReserveofWIP]

1.  We are transferring 5 WIP to the recipient 23-36-64-13-66-01, as part of the friendship economy, under transaction ID 54-61-48-63-53-05.

2.  We are introducing a couple of features for better tracking:

- All parties are identified by five pairs of two-digits numbers, followed by 01 for the main account or another sequential number for sub-accounts.   The number of the Federal Reserve of WIP is 29-27-47-01-34-01 for the main account.

- Transactions now have an ID counting sequentially from 54-61-48-63-53-01 and up.  The public ledger has been rewritten with first four transactions assigned retroactively.

Please recall that in the interests of adoption and development or for any other reason or no reason, the Federal Reserve of WIP retains the right to rewrite the public ledger in any way and at any time for any reason or no reason, without prior notice, at its sole discretion.

Best regards:

Chairman of the Federal Reserve of WIP


* * * * * * * * * * * * * * * * * * * * * * * * *
FEDERAL RESERVE OF WIP PUBLIC LEDGER AT  Friday, 19 December 2014 10:39:13 a.m GMT r4

History:
[1] Transaction 54-61-48-63-53-01* Wednesday, 17 December 2014 10:55:54 p.m. GMT, the Federal Reserve of WIP  hereby creates 100 WIP.   Account: 29-27-47-01-34-01   Amount: +100  

[2] Transaction 54-61-48-63-53-02*  Wednesday, 17 December 2014 11:54.37 p.m. GMT, TRANSFER from Federal Reserve of WIP account 29-27-47-01-34-01 -> Chairman of the Federal Reserve of WIP account 67-73-78-68-97-01. MEMO: Federal Reserve of WIP Chairman stipend for December 2014. AMOUNT: 0.5 WIP.

[3] Transaction 54-61-48-63-53-03* Thursday, 18 December 2014 2:55:50 p.m. GMT, transfer from Federal Reserve of WIP  29-27-47-01-34-01 ->  29-27-47-01-34-02 (set aside for kingkedi, currently under Federal Reserve of WIP Account).  MEMO: this is being extended to kingkedi at an interest rate of 0.287% for 3 weeks.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP

[4] Transaction 54-61-48-63-53-04(R) Thursday, 18 December 2014 2:56:21 p.m. GMT, transfer from Federal Reserve of WIP ->  29-27-47-01-34-03 (set aside for jonald_fyookball).  MEMO: This is being extended to jonald_fyookball at an interest rate of 5% p.a. for a duration to be confirmed.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP

[5] Transaction 54-61-48-63-53-05  Friday, 19 December 2014 10:07:33 a.m GMT  TRANSFER from "Federal Reserve of WIP" account 29-27-47-01-34-01 ->  individual, account 23-36-64-13-66-01  MEMO: Friendship economy.  Amount: 5 WIP *


Total WIP in existence: 100 WIP.

--

Statement of Account.

Possessors of WIP:
[1] The Federal Reserve of WIP.  ID:  29-27-47-01-34-01.  Possesses 94.5 WIP.
  of which:
  29-27-47-01-34-01  -- 94.45 WIP main account
  29-27-47-01-34-02  -- 0.025 WIP reserved for kingkedi
  29-27-47-01-34-03  -- 0.025 WIP reserved for jonald_fyookball

[2] Chairman, Federal Reserve of WIP (personal).  ID: 67-73-78-68-97-01   Possesses 0.5 WIP.

[3] Friendship economy network member,  ID: 23-36-64-13-66-01    Possesses: 5 WIP.

Repayment obligation:
- None.

Other paper/scrip: none.

* * * * * * * * * * * * * * * * * * * * * * * * *

[jonald_fyookball]

how are we supposed to repay with interest?   where would we get more wip?

[FederalReserveofWIP]

how are we supposed to repay with interest?   where would we get more wip?

Dear Jonald_fyookball,

Thank you for the question. As you ask a forward-looking question, firstly I would like to emphasize that all of the answers below are provisional and that, in fact, the Federal Reserve of WIP reserves the right to do or change anything at any time without notice. Therefore you may not rely on the information below, except with the understanding that the Federal Bank of WIP may behave or not behave in the ways described below at its sole and sovereign discretion, i.e. as it chooses and sees fit, at any time and for any reason or no reason without any limitations.

With this caveat, the answer is that (if the Federal Reserve of WIP so chooses) you can receive WIP from any possessor of WIP as long as the nominal value of the transaction is $0, i.e. in exchange for favors, friendship, free services, etc, similar to in-game actions in a video game. Anyone who possesses WIP may transfer it to any other account (or individual), simply by writing to the Federal Reserve of WIP (at federalreserveofwip@gmail.com), via PM here, or in this thread to initiate the wire transfer. Transactions are performed manually at the moment, and confirmations are sent out by email as well as being visible in the public ledger posted here. Through these means, you can transfer WIP to any other person, who would be assigned an account number if this recipient does not already possess one.

At the moment, if the Federal Reserve of WIP so chooses, you would have the following means of repaying WIP you have borrowed from the Federal Reserve of WIP:

1) Perform a favor or enter another transaction with a parity price of $0, to a possessor of WIP and in exchange receive WIP. For example, at the moment the owner of the account 23-36-64-13-66-01 possesses 5 WIP. If you are in touch with this person directly, you can simply receive a WIP transfer in exchange for performing some favor with a nominal price of $0. Likewise, as Chairman, I possess 0.5 WIP at present and can transfer part of this to you as well, as part of a transaction with a nominal price of $0.

2) In the future as more and more people possess WIP, which is by its nature inflationary, it will be easier and easier to acquire WIP from someone who wants from you a favor, social media interaction, or other transaction type with a nominal value of $0, including other borrowers, and even if you do not have direct contact with this party initially.  You can, for example, advertise gift services and related non-monetary exchanges in exchange for WIP, or any other transaction with a parity price of $0 and receive WIP from such people.  You can sell things for WIP in the real world in this way, as long as what you are selling has a parity price of $0 such as gift services and favors.

3) For those who choose to borrow WIP from the Federal Reserve of WIP, perhaps one of the easiest and most important ways you can receive additional WIP is by acting as a lending institution to borrowers i.e. treating The Federal Reserve of WIP as a Central Bank and being your own lending institution (bank.)  For example, the Federal Reserve of WIP currently lends at a 5% annual interest rate. But users have requested loans at an interest rate of 15% per 3 weeks (i.e. 86.96% annually.)  In this case, as a lending institution you can perform arbitrage among these rates by simply taking a loan from the Federal Reserve of WIP and lending it out to other users, pocketing the difference in WIP. This is extremely similar to how many banks operate in the real world, and like the real world, you will have to compete with other bank rates (other people doing the exact same thing), as well as take your borrowers’ credit and faithfulness into consideration, or non-monetary-based collateral or contractual promises/obligations.

4) The Federal Reserve of WIP may raise money (WIP) by selling Treasury-Bills (T-Bills) on the open market to raise funds for its own use, i.e. its own gift budget. These would be sold at a discount to the face denomination; for example, a T-Bill maturing in 30 days' time and paying out 5 WIP (its face value, also called par amount) may be sold for 4.5 WIP by the Federal Reserve of WIP for example. In this case, if you have received a low-interest loan from the Federal Reserve of WIP previously, you may simply use the WIP you possess to purchase T-Bills at their discounted value.  Upon maturity of the T-Bills, you will repaid their face value, allowing you to pay back your loan and interest obligation, and pocket any difference. For its part, the Federal Reserve of WIP would sell T-Bills in order to finance its own volunteer budget and gift economy operations, much as governments do in the real world.

5) Therefore another important though smaller source of WIP would be the spending of WIP by the Federal Reserve of WIP itself. In other words, after raising money (WIP) by selling T-Bills to others, if the Federal Reserve of WIP spends this money, you would be in a position to receive it by providing a gift economy service of some kind to the institution which it desires. In this way, you would end up receiving WIP, with which you could then repay your earlier loan. However, it is just as possible to receive WIP from anyone else who possesses it, and the spending by the Federal Reserve of WIP would ordinarily be a small fraction of the WIP economy.

6) Finally, although this is not emphasized, the Federal Reserve of WIP intends to act as the lender of last resort. Assuming that you require WIP liquidity to which you do not have access from any source, cannot raise it from other lending institutions, and cannot produce it through gift economy services, the Federal Reserve of WIP would still be in a position to provide a short-term loan to provide the necessary liquidity. Although this runs the risk of creating systemic indebtedness, at the same time it provides extremely important liquidity that can be used in the real-world gift economy to create real 'in-game' value (albeit pegged to a parity price of $0 and in a gift economy.) In the real world, a sustainable level of systemic indebtedness is not in itself necessarily a bad state of affairs, and the real social value of a growing gift economy can act as a tide that 'raises all ships' and makes everyone better off.  Therefore, this solution is not necessarily a bad solution, should the normal inflationary process and incentives fail to provide the necessary liquidity for loans to be repaid to the Central Bank. (Another word which in this case refers to the Federal Reserve of WIP, based on one of its most important functions.)

I hope that this answers your questions about some of the many sources for WIP repayment. Since WIP is by its nature inflationary, with the potential for additional quantitative easing provided by the Federal Reserve of WIP to further spur private spending and growth in stagnant cases, as well as the normal means through which additional WIP is introduced and spent, you can rest assured that you will have access to a stable and growing monetary supply you can use to finance your virtual, in-game gift activities as well as reasonable levels of borrowing now and in the future, provided you use these to engage in real economic gifting activity that provides benefits to others and incentive to spend WIP on your services while being pegged to a nominal transaction prices of $0.  The caveat is that these services may not extend out of game to real-world transactions of value, nor would this be desirable given that the Federal Reserve of WIP rules with complete sovereign impunity, is not (currently) subject to any legal or constitutional checks and balances or limits of any kind, and can take any and all action it desires at any time and for any reason or no reason, without oversight or transparency.  (Beyond the public ledgers it publishes.)

Within this framework, rest assured that we intend to remain faithful stewards of a working system, and we will do our best to show everyone the way in which it works or fails to work.

Jonald_fyookball, we would be honored to have you as among our first borrowing institutions, so that we can begin to introduce WIP into the world gift economy, and we are sure that you will not have difficulty in making the extremely reasonable interbank interest rate repayments, which are a tiny fraction of that of other currencies.  Without emphasis on this degenerate case, in case you did fall into trouble, we are here to help you work out your liquidity needs from a money supply standpoint and get to building real-world gift value and being able to repay your reasonable loans.  By providing real, albeit pegged to a parity of $0 services to the community, or using WIP in any other way you require from a stable money supply, we are sure you will be in an excellent position to benefit from our low interbank lending rates with which we hope to stimulate the economy.

Some of our members have already been extremely surprised that we provide loan rates at a tiny fraction of other currencies, 0.287% per three weeks versus 15%, 5% per year versus 86.96%.  We consider those interest rates unsustainable for any fast-growing economy, and while the WIP economy is based on gift transactions and favors without a nominal value (pegged to $0), the main difference is that by being based on an inflationary centralized currency, we are sure we can create something of lasting value to everyone with stable prices (pegged to $0), a reasonably easy money supply, good employment and usage of WIP, and reasonable inflation and interest rates, all by close analogy to the real world of central banks and fiat currency.

Thank you very much for your interest.  If you have any further questions, please don't hesitate to ask, either here or privately.

We look forward to hearing more from you or answering any other questions you may have.

Best regards:

Chairman of the Federal Reserve of WIP

[jonald_fyookball]

1. so if you can change anything at anytime,
what prevents you from making a burdonsome claim upon your debtors?

You could lend me 1 WIP and say tomorrow that
I owe money for it.

2. Since no one owns any WIP, i wouldnt be able to
get more of it to repay the loan unless I traded
freely for it.  So that is already burdensome.

It is for those reasons that I've decided I no longer
want to borrow WIP.  However, if you want to
give some to me a gift, I will accept it.

[FederalReserveofWIP]

1. so if you can change anything at anytime,
what prevents you from making a burdonsome claim upon your debtors?

You could lend me 1 WIP and say tomorrow that
I owe money for it.

2. Since no one owns any WIP, i wouldnt be able to
get more of it to repay the loan unless I traded
freely for it.  So that is already burdensome.

It is for those reasons that I've decided I no longer
want to borrow WIP.  However, if you want to
give some to me a gift, I will accept it.

Dear Jonald_fyookball,

Regarding 1, it would not be possible for us to say that tomorrow you owe any other currency than 1 WIP, because transactions are pegged to $0 and it would be against everything at the stage of launch of the WIP currency for us to involve other currencies and metrics.  It is simply not in our interests to peg WIP to any other value than a parity of exactly $0, and your example would go against this.  Rather, we are pegging to a currency where actions are similar to actions performed as gifts, acts of friendship, or as favors, rather than having real-world monetary transactions.  This is important for our adoption and means that all users of WIP are (in our opinion) without any risk of any kind at any point.

More broadly, within the context of sovereignty that we have outlined, and of pegging to $0, it is in our interests to be excellent stewards of the currency and demonstrate the fastest-growing and largest currency in an online community.  We believe strongly in a strong sovereign state that is able to enact strict rules, eventually subject to some kind of constitutional oversight.  For example, whereas other crypto currencies have no protection against simple ponzi schemes, the Federal Reserve of WIP is an extremely strong and centralized body that is able to outlaw ponzi schemes very strictly.  We can simply and unilaterally remove WIP from anyone running a ponzi scheme, we can require proof of real (albeit gift) transactions to show that a ponzi scheme is not taking place, and so forth.  Likewise we can bring to the table every rule that has resulted in a stable, safe monetary climate in the real world, all while remaining a risk-free gift economy.

Over time, by retaining immeasurable sovereign power over our currency and community, we believe we will be able to build the strongest, fairest, fastest-growing, best, perhaps even only sovereign online currency.  In fact, in the sense of several analogies with real-world institutions (such as the Fed and ECB), arguably WIP is the only online currency currently in existence.  (With crypto currencies being storage of value more similar to gold than a fiat currency.)  That said, we are committed to pegging to a parity of $0 for the time being.


Regarding your second point: WIP was launched on December 17th two days ago and is already owned by several parties.  We have seen approxiamtely 41.42% growth per day in the number of owners, which is a breakneck speed that we hope to continue for several more days or weeks (after some technical additions) with strong growth continuing thereafter.  Also recall that Account numbers and transaction ID's were just introduced today, and the public ledger is still being updated by hand.  At even a tiny fraction of this growth rate you will have more than enough counterparties to trade WIP freely among.

That said, I understand that you would not like to act as a bank or lending institution until you see more available customers or a gift-based business that can produce WIP in a gift economy.  Therefore, I would propose the following solution to you:

The Federal Reserve of WIP has been considering the idea of selling Treasury Bills on the open market in order to finance its own gift economy.  Although we were going to hold off, the Federal Reserve of WIP would be pleased to extend to you the offer (subject to all the previous mentioned conditions) of a T-Bill with par value of 5 WIP and maturing on January 1st, 2016, for a price today of 3 WIP.  (This is not an open market price but your price today.)  

Separately, we would be pleased to extend you a 3 WIP loan at 5% simple interest starting today and due in full on January 2nd, 2016, i.e. approximately 3.15 WIP will be due (a bit more due to the additional two weeks) will be due in 1 year's time.  As the T-Bill that you hold will have converted the day before at a face value of 5 WIP, this will immediately give you a profit of a bit less than 1.85 WIP.  This is very close to what you have requested, being a "gift".  You are also allowed to sell and trade your T-Bill here with our approval, it will be in your possession subject to the same conditions as WIP that is in your possession.  You do not run any further obligation or risk.

This is a very generous offer from the Federal Reserve of WIP and comes with no risks or downsides for you.  Real-world T-Bills are considered to be essentially free of any risk whatsoever, since they have face values denominated in the actual currency sought and being purchased with.

On the side of the Federal Reserve of WIP, the WIP raised through the sale of the T-Bill will form part of the operating budget of the Federal Reserve of WIP, and be considered its debt.  Although conceptually similar, selling to investors on the open market this way is preferable to printing money directly; for one thing it does not cause hyperinflation, for another it is a stable way to increase the money supply over time.

We reserve the right to withdraw this offer, but for the moment extend it as a risk-free alternative to taking on debt, and tantamount to a gift consisting of the difference between the par value of the note you hold and the total capital plus simple interest rate that you also take on, exactly as you have asked.

We hope you will find this offer fair and reasonable, and hope that you will join us on this exciting journey building a real-world analogy of some of the world's most stable and fastest-growing economies.

We look forward to hearing from you.

Best regards:

Chairman of the Federal Reserve of WIP

[FederalReserveofWIP]

Dear Bitcoin Community,

We have a couple of very exciting announcements to make today.  Firstly, we welcome the first commercial bank into the Federal Reserve of WIP banking system, the Commercial Bank of Internet Points (CBIP).  CBIP is a fully independent bank run by user fewcoins.  It is the first bank of WIP coins, and capitalized directly by an interbank loan from the Federal Reserve of WIP.  It is subject to all of our banking regulations now and in the future.

As part of our oversight of the WIP ecosystem, the Federal Reserve of WIP has mandated that CBIP -- and all WIP banks -- maintain a 20% reserve ratio.  This is a historically high reserve ratio that is meant to ensure a stable WIP economy and ecosystem.  Its purpose is to ensure that the CBIP can meet all of its obligations for the foreseeable future.

Although our relationship with the CBIP is at arm's length, the CBIP is a Most Favored Nation in the Federal Reserve of WIP banking system, and an important ally.  If the CBIP is open to private deposits, I hope to deposit my personal WIP coins in an interest-bearing CBIP account.  In addition, the CBIP is your important source for commercial and private loans of WIP.

Please write to the President of the CBIP, fewcoins, directly at: https://bitcointalk.org/index.php?action=profile;u=379923  with your loan and banking requirements.

I want to emphasize the importance of this historical step.  Since its launch a few days ago, the WIP economy has grown 44.22% day over day in terms of number of users, and along with the launch of CBIP, the number of coins that have been in private possession and their velocity have increased by close to 100% per day, with to date only a 5% increase in the money supply.  This makes WIP one of the fastest-growing currencies, and with the launch of its first commercial bank within the first week, perhaps one of fastest seriously adopted currencies.

By being careful stewards over an inflationary and expansionary money supply, we hope to make WIP the most accessible crypto currency in existence.  Certainly, it is the only one that can easily be borrowed from the CBIP at competitive interest rates.  If you have any questions, do feel free to contact fewcoins, the President of CBIP directly.

Finally, I must still emphasize two important areas: firstly, the Federal Reserve of WIP exercises full and sovereign authority over the entire WIP ecosystems, including retroactively.  We can enact any rule we see fit, including over the balances of the Commercial Bank of Internet Points or any other user of WIP, at any time, and for any reason or no reason.  This includes retroactively rewriting the public ledger and history of transactions.  Secondly, we wish to emphasize that at this time WIP may only be used for transactions with a parity price of $0.  i.e. it may not be bought and sold directly in exchange for other currency; suitable transaction consideration could be favors, friendship and social networking, or other transactions with a nominal price of $0.

It is exciting to see the large growth the WIP economy is experiencing despite these present constraints, and we are excited to show the benefits as well as pitfalls of a centralized system over the coming days and weeks.

We welcome all of your questions and comments and thank you for everyone's support and usage.  We are sure WIP will be the most exciting Internet currency in your portfolio over the coming year.

The Federal Reserve of WIP will be closed on 25 December and 26 December, 2014.  From December 24, 2014 to January 5, 2015, there will be only intermittent updates to the public ledger.

Best regards:

Chairman of the Federal Reserve of WIP

https://en.wikipedia.org/wiki/Reserve_requirement


Summary of public ledger updates below:
1.  Transfer of 0.5 WIP to wolf0.
2.  Central Bank loan to Commercial Bank of Internet Points, CBIP, 30 points.
3.  Creation of 5 WIP.


-

* * * * * * * * * * * * * * * * * * * * * * * * *
FEDERAL RESERVE OF WIP PUBLIC LEDGER AT Tuesday, 23 December 2014 5:22:49 p.m. GMT GMT r6

History:
[1] Transaction 54-61-48-63-53-01 Wednesday, 17 December 2014 10:55:54 p.m. GMT, the Federal Reserve of WIP  hereby creates 100 WIP.   Account: 29-27-47-01-34-01   Amount: +100  

[2] Transaction 54-61-48-63-53-02  Wednesday, 17 December 2014 11:54.37 p.m. GMT, TRANSFER from Federal Reserve of WIP account 29-27-47-01-34-01 -> Chairman of the Federal Reserve of WIP account 67-73-78-68-97-01. MEMO: Federal Reserve of WIP Chairman stipend for December 2014. AMOUNT: 0.5 WIP.

[3] Transaction 54-61-48-63-53-03 Thursday, 18 December 2014 2:55:50 p.m. GMT, transfer from Federal Reserve of WIP  29-27-47-01-34-01 ->  29-27-47-01-34-02 (set aside for kingkedi, currently under Federal Reserve of WIP Account).  MEMO: this is being extended to kingkedi at an interest rate of 0.287% for 3 weeks.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP

[4] Transaction 54-61-48-63-53-04 Thursday, 18 December 2014 2:56:21 p.m. GMT, transfer from Federal Reserve of WIP ->  29-27-47-01-34-03 (set aside for jonald_fyookball).  MEMO: This is being extended to jonald_fyookball at an interest rate of 5% p.a. for a duration to be confirmed.  Currently held by Federal Reserve of WIP.  AMOUNT: 0.025 WIP

[5] Transaction 54-61-48-63-53-05  Friday, 19 December 2014 10:07:33 a.m GMT  TRANSFER from "Federal Reserve of WIP" account 29-27-47-01-34-01 ->  individual, account 23-36-64-13-66-01  MEMO: Friendship economy.  Amount: 5 WIP

[6] Transaction 54-61-48-63-53-06  Saturday, 20 December 2014 4:43:23 p.m.  GMT TRANSFER from "Federal Reserve of WIP" account 29-27-47-01-34-01 ->  fewcoins, account 31-47-62-09-56-01   MEMO:  WIP adoption alignment and related  Amount: 1 WIP

[7] Transaction 54-61-48-63-53-07 Tuesday, 23 December 2014 5:07:54 p.m. GMT TRANSFER from "Federal Reserve of WIP" account 29-27-47-01-34-01 -> wolf0, account 12-61-85-24-19-01 MEMO: friendship economy and alignment     Amount: 0.5 WIP*

[8] Transaction 54-61-48-63-53-08  Tuesday, 23 December 2014 5:12:28 p.m. GMT  TRANSFER from "Federal Reserve of WIP" account 94-34-74-63-54-01 -> Commercial Bank of Internet Points (CBIP), account 94-34-74-63-54-01   MEMO: Central Bank loan at 5% p.a. as a regulated bank in the Federal Reserve of WIP banking system.*

[9]  Transaction 54-61-48-63-53-09 Tuesday, 23 December 2014 5:21:27 p.m. GMT,  the Federal Reserve of WIP  hereby creates 5 WIP.   Account: 29-27-47-01-34-01   Amount: +5 WIP *

Total WIP in existence: 105 WIP.

--

Statement of Account.

Possessors of WIP:
[1] The Federal Reserve of WIP.  ID:  29-27-47-01-34-01.  Possesses 68 WIP.
  of which:
  29-27-47-01-34-01  -- 67.95 WIP main account
  29-27-47-01-34-02  -- 0.025 WIP reserved for kingkedi
  29-27-47-01-34-03  -- 0.025 WIP reserved for jonald_fyookball

[2] Chairman, Federal Reserve of WIP (personal).  ID: 67-73-78-68-97-01   Possesses 0.5 WIP.

[3] Friendship economy network member,  ID: 23-36-64-13-66-01    Possesses: 5 WIP.

[4] fewcoins, ID: 31-47-62-09-56-01   Possesses: 1 WIP.

[5] wolf, ID: 12-61-85-24-19-01 Possesses: 0.5 WIP.*

[6] [Authorized Bank] Central Bank of Internet Points (CBIP), ID: 31-47-62-09-56-01   Possesses: 30 WIP.*


Repayment obligation:
- debtor CBIP, 31-47-62-09-56-01, owes to creditor Federal Reserve of WIP, 29-27-47-01-34-01,  amount of 30 WIP plus 5% p.a. starting Tuesday, 23 December 2014 5:12:28 p.m. GMT, terms to be be specified and amended in this public ledger retroactively.

- None.

Other paper/scrip: none.

* * * * * * * * * * * * * * * * * * * * * * * * *
[/quote]

[fewcoins]

Commercial Bank of Internet Points (CBIP)

We will have our ledger on this same thread & handled by The Chairman of the Federal Reserve of WIP until we have a bigger & still rapidly growing community.
We are currently offering a 2% interest payment on WIP that is held in our bank.
ALL deposits are currently guaranteed by CBIP Since we hold over 30 coins at the moment.

Any questions or comments can be directed at me or FederalReserveofWIP

[billotronic]

Commercial Bank of Internet Points (CBIP)

We will have our ledger on this same thread & handled by The Chairman of the Federal Reserve of WIP until we have a bigger & still rapidly growing community.
We are currently offering a 2% interest payment on WIP that is held in our bank.
ALL deposits are currently guaranteed by CBIP Since we hold over 30 coins at the moment.

Any questions or comments can be directed at me or FederalReserveofWIP

how much for a dime bag?

[jonald_fyookball]

I'll sell you 1 wip for 1 penny

[tylerderden]

Commercial Bank of Internet Points (CBIP)

We will have our ledger on this same thread & handled by The Chairman of the Federal Reserve of WIP until we have a bigger & still rapidly growing community.
We are currently offering a 2% interest payment on WIP that is held in our bank.
ALL deposits are currently guaranteed by CBIP Since we hold over 30 coins at the moment.

Any questions or comments can be directed at me or FederalReserveofWIP

how much for a dime bag?

i guess they are free