Corporate Issuance

Features. Corporate issuance is now possible using Ricardo^TM, by Systemics^TM to describe and manage instruments for internal accounting and financing purposes.

• Ricardian Contracts describe an internal instrument,

• uses Ricardo to achieve real time, reliable, open and secure payments,

• an internal corporate dollar can replace work records between departments,

• a fiat issue redeemable in future services and goods can create a way to pay suppliers and contractors.

• by using hard payments based on soft agreements, accounting systems are supplemented or even replaced,

• expansion of currency outside boundaries of firm raises financing at 0%.

Inside the Firm. An internal dollar creates a hard monetary unit, yet each dollar represents a free unit of currency. This is the best of both worlds for the budgets department; the hard discipline of the dollar, drilled down into the lowest levels of the company, without having to raise working capital in order to drive the discipline!

How an internal money helps:

• Budgets become tighter, in the sense of more controlled. No longer can a department over-reach its expenditures.
• Accounting is simplified as payments provide hard records. A digitally signed payments receipt is stored and organised by user software, and makes for an excellent foundation for more complex reporting requirements.
• Managers much better understand the power of money, where the accounting systems and budget limitations often fail to reach.
• Transfers between departments are fluid, whereas budget and accounting systems are clunky when it comes to moving results between units of reporting.
• Each department can more easily open up its own internal subdepartments.

Perhaps best of all, this can be done without raising new capital. The discipline of the market place comes into the firm without costing an arm and a leg!

Outside the Firm. There are two possibilities, walking hand in hand: for your creditors to take your internal money as immediate and full payment for your debt, and for your customers to pay in full and complete with the same money.

In this sense, your money becomes a credit note. There is good reason for your creditors to also take your internal money.

• Immediate settlement means no messing around with invoicing, demands, record keeping, scheduling, and all that costly rigmarole. Creditors save money because they have it already.
• Fungibility means any one note is the same as any other. Creditors get a better instrument. It's the same quality as everyone elses debt note from you, so there is no discrimination, up or down, against debt by your paying department.
• Marketability means that a holder of the note can sell this to the market of your customers. This means that no creditor need fear mistreatment from your paying department ever again!

When they take your own internal money, creditors swap their uncertain, undated, undocumented, often stagnant position in debt for a documented, dated, certain instrument. What's more, it's fungible. They can also use this instrument in the settlement of their own debts!

Inside your Balance Sheet. In time, and with a firm and honest hand at the wheel, your company can move your AR/AP across to your own unit of exchange.

As a currency, this development can move your financing towards 0% terms. Holders of your issue have financed you on much more favourable terms, in exchange for an instrument of far superior qualities.

Related Products. Ricardo is used to issue your internal money. Several additional products use Ricardo to participate in that financial system:

• WebFunds^TM is a downloadable client that stores and manages value for a user. As a downloadable program, it is capable of auditing the actions of the server, thus keeping it safe and honest.

• Pumphouse^TM is a web site that overlays WebFunds with SSL-based access. This system extends Ricardo into the Website world, thus leveraging the unique governance features available within WebFunds across the widest possible user base.

• Systemics has built a financial trading infrastructure that utilises Ricardo payments. This could be used to price an internal currency.

Ricardo is built for flexibility and financial strength. It also performs well for less stringent applications such as loyalty systems ("airmiles"), discriminatory tokens (vouchers), and internal monetary systems such as casinos.

More Information. See the Ricardo page at < http://www.systemics.com/docs/ricardo> or see the WebFunds project at http://www.webfunds.org/.
Ricardo, SOX, WebFunds, Pumphouse and Systemics are trademarks of Systemics Inc.
Cryptix is a trademark of The Cryptix Foundation Ltd.