There is no money on the Blockchain

When it comes to cryptographic assets it seems as if the blockchain has birthed an entire zoo of alternative stores of value, mediums of exchange and investment vehicles, all competing against each other with their different attributes, use cases, and rationales. And, in many ways this is indeed true, however this overwhelming diversity of tokens, coins, and whatnot seems to obscure the somewhat ironic absence of the one asset the blockchain was built to facilitate: electronic cash.

Zoo of alternative value stores

The first kid on the blockchain, Bitcoin, was supposed to be just that: A Peer-to-Peer Electronic Cash System, and who knows, one day…

Imagine being able to access a credit line that, just like any other credit line, allows you to spend money you previously didn’t have; only that with this credit line, no creditor is involved. No one has lent you this money, it seemingly appeared out of thin air, and there’s no one profiting from your debt.

This may sound like sorcery, but it is, in fact, a well tested way of doing business called “Mutual Credit” and, in conjunction with recent developments in the DeFi space, might just be the future of money. Bear with us.

A Mutual Credit system…

A Mutual Credit ERC20 — CIP for Celo

The ERC20 specification permanently altered landscape of cryptocurrency by making token creation easy and accessible to anyone with a basic knowledge of smart contract development. This proposal seeks to be the ERC20 of mutual credit.

Our CIP provides a mutual credit protocol and reference smart contract for any project on Celo to be able to use. It will allow a token system that implements ERC20 but behaves and is issued as a mutual credit currency. See our pull request to Celo here.

First, what is Mutual Credit:

Mutual Credit is a multilateral…


A blockchain-based mutual credit network for businesses.

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