The integralCES management by the local FairCoop exchange offices
May 15, 2016
To create two networks Integral CES,
1. The first for make visible the balances of social currency exchanged by local faircooop offices We’ll tell SCUR0000
2. The second one for visibilizing the cash balances in official currency. We’ll tell FIAT0000
Scope and operation
This protocol has a scope that includes all the public accounts of FairCoop node and exchange offices worldwide.
1. Admin account who makes no role in money creation, administered by faircoop
2- Public Accounts from the exchange offices of each FairCoop node.
Arbúcies OF (0011)
Social Aurea OF (0021)
Roig OF (0031)
Heraklion OF (0041)
Arbúcies EX (0012)
Social Aurea EX (0022)
Red EX (0032)
Heraklion EX (0042)
Each office could have account for currency exchange (OF) and a second account for expenses (EX). This second only according to local agreements based on networks of Integral CES and CES. (The account should be in the respective software in other cases)
A decen of numbers will be reserved for each office, so it will be easier to identify their accounts and make groupal monitoring.
3. – Consolidated cash public network FIAT
The network is a closed network FIAT which not will interact with the network of social Currency at CES and IntegralCES. Each office will have an account that can be set up in negative and other in positive.
The negative accounts will be called Issuers (IS) and the positive accounts will be called cash (CA). So that each cash account will be the same to the cash reserves available to the node.
On the other hand, money which is in banking accounts will also be represented with the sign (CC)
It will be like this:
Arbúcies IS (0011)
Aurea Social IS (0021)
Roig IS (0031)
Heraklion IS (0041)
Arbúcies CASH (0012)
Aurea Social CASH (0022)
Red CASH (0032)
Heraklion CASH (0042)
Arbúcies CC (0013)
Aurea Social CC (0023)
Red CC (0033)
Heraklion CC (0043)
As SCUR network, in the CASH network, the same decen of numbers will be reserved for each office, so it will be easier to identify their accounts and make group monitoring.
General criteria and economic context
Faircoop has an exchange network (SCUR) that it recognizes the changes between FairCoin and other currencies accepted in the exchange offices. This exchange network platform uses the joint social currency management platform called IntegralCES (www.integralces.net). This platform provides access to services and resources for managing users, offers, demands, balances and transactions between users and networks.
There is a reciprocal exchange protocol in Catalonia (https://www.monedasocial.cat/protocol/) to facilitate exchanges between networks of social currency, based on autonomy and cooperation networks. It is a protocol of monetary stability, which aims to ensure a balance between supply and demand and the health of the economic networks between participants.
This protocol will not be affected by global FairCoop because the general approach of the network SCUR will interact only with positive balances of social currency and will not accept exchanges based in negative balance. If a node wants to make bilateral agreements with certain networks if then will need to take it in account (in the case of Catalonia) or take it as a reference, in other cases.
There is also a guide about good practices in the administration of networks of social currency (…) that defines a series of recommendations, including a note that has particular relevance in the case of FairCoop:
– To Limit account creation for different networks from a single user.
Therefore, exchange offices should not have accounts on other networks of integralCES more than SCUR and CASH to avoid altering the internal volume of transaciones from other network operations with their currency exchange.
In the case of networks tdifferent than CES and IntegralCES which then not allow operational exchanges between different networks, then they will need to create other accounts because in this case is the way to make the money exchange.
(See point: Accounts managements on other networks different than the CES and IntegralCES)
Exchange administrator (SCUR0000)
This account will be managed from FairCoop Coordination, supported by authorized persons. The account is to SCUR0000 email contact email@example.com
The account administrator can create and manage:
– Users and accounts
– Debit and credit limits,
– Categories of offers and needs
With that account is possible also to configure the general exchange network:
– Identification of the network and currency
– Privacy options (balances and amounts of purchases and sales of accounts)
– Identifier of the network within the Community Exchange Network (CENXXXX) (www.clearingcentral.net)
Changing the general settings of the SCUR network will need to be approved by FairCoop assembly
General public account (SCUR0001)
This account can collect transactions that correspond to the whole FairCoop
As a general rule, try instead to classify each specific type of transaction and will use this account only for exceptional cases.
Persons appointed by the assembly will have access to account management.
Exchange accounts between networks
There are some virtual accounts that show the balance of exchange between the network SCUR and all networks involved in any exchange. For external CES network platform, these accounts are identified by the code CEN (Community Exchange Number, for example SCURcenXXXX) and networks of IntegralCES, these accounts are identified with ID of both networks (for eg COOPSCUR).
The exchange accounts must be kept activated to accept transactions between the SCUR network and external networks. To disable or lock up a virtual account, this decision will be adopted at the relevant assembly
FairCoop will ensure all new virtual exchange accounts that are generated every time is opened an exchange between a network of currency exchange and FairCoop exchange office.
The exchange accounts will be identified as virtual accounts and will have a generic virtual setting of credit and debit account limits, about XXX monetary units. called “exchange between networks.” As global FairCoop will be 0. It will be possible to set specific limits for networks, according to the protocol of exchange and reciprocal bilateral agreements between FairCoop nodes and other networks. These bilateral agreements will be ratified in the assembly of the respective node
Subscribe, unsubscribe and management of public accounts in exchange network
Creating an account at SCUR public network must be approved by the assembly of the FairCoop node These types of accounts are classified as public account and your contact will correspond with an exchange office of a FairCoop node
All public accounts of the SCUR network, will maintain an authorized access to other users in a way that will allos them to track movements between them in a decentralized way.
Issuance of currency and limits
The network SCUR is not a network of exchange of goods and services. The direct relationship between the Faircoin currency and goods or services exchanged with that currency is managed from other tools such as FairMarket, use.fair-coin.org and presencial spaces.
The currency issue in SCUR network is null. Only those offices which have a bilateral agreement that defines the colaboration with local currencies will have negative balances
From Multicurrency ecosystem working group will carry out a periodic review of public account balances belonging to the network SCUR to the General FairCoop Assembly.
Reserves management and process of currency exchanges in the exchange offices
Each office has an exchange account in the FIAT network to manage their virtual euros and one account in the SCUR network to manage their currency reserves in social currency. An office also can have a second account Scur to record their incomes and expenses management.
Change euros to faircoin
When a exchange office receive euros from a user, should make a payment to their account on the CASH network from his issuer account to his balances account and vice versa when the change is euro to faircoin. In parallel corresponding faircoin transactions will be visibble in the blockchain.
Exchange Faircoins for social currency
When an exchange office received social currency from someone who has redeemed social currency for faircoins, the exchange must make a payment to the account of the social currency seller from the account in social currency belonging to them.
Exchange euros for social currency
This will only be available in those networks that there is an agreement in this regard.
If is the case, when an exchange office receive euros from someone who has exchanged euros by social currency, would need to make the sell of social currency from the social currency account of the exchange office.
At same time, would be important to add, the exchanged balance from his account related reserves in euros, asking that their issuing account in CASH network create a transaction for the same amount of the social currency exchanged. In this way, the euros will appear in the balances account in euros from the exchange office.
Euros in Cash and euros in bank account
The FIAT network will let us visibilize where are the euros of the local offices each time. These ranges from cash and bank accounts will be the same that integral CES,
in a way that both will be represented in the accounting. One as office Arbucies CASH and the other as office arrbucies CC
Recall that FairCoop offers a Betabank account for the local nodes, so they can make cashin to a bank account if they need so.
Incomes and expenses in social currencies
Exchange offices will be able to generate revenue in social currencies, in exchange of exchange office services offered to the social currency networks. This could happen as a donations or contributions.
To not see altered the system of internal balances used to make reserves available in each currency, these revenues will offset the costs of each exchange office. These incomes and expenses must be managed from a second account for each exchange at the net SCUR
The offices should avoid spending the money they receive as a product of a social currency exchange, and only when it would receive the payments they could spend.
Accounts managements on other networks different than the CES and IntegralCES
Many social currency networks, uses different platforms related Integral CES and CES such Cyclos. When this is the case, the networks will have to create an account on the SCUR social currency network and the other side will have to create an account on the local network to have an agreement.
So whenever there is a currency exchange from social currency to Faircoin:
1. SCUR sender’s account to the account will make transaction OF, only if there is positive balance.
2. On the local network, for example Cyclos, the exchange office will receive payments with the social currency.
Related the faircoin exchanges to social currency
1. The OF acccount of SCUR will send he transaction to the issuer account
2. On the local network, for example Cyclos, the exchange office will issue a payment in social currency to the ussers acount.
In all that process, the OF account and the account in Cyclos, should have a similar balance.