Cashless Economy: Dibspace Founder’s Bid To Live On Virtual Currency For A Year

In light of the well-documented troubles of the world’s economy (arguably a virtual marketplace of its own), the idea of de-centralized currency and exchange has been given renewed attention. From local examples like the Brixton Pound and Ithaca Hours to alternative (often online) forms like Ven, Linden Dollars and Facebook Credits, new systems are enabling people to live further and further outside the realms of traditional transactions. Regardless of how far these platforms move away from actual dollars and cents, they’re still inextricably linked to larger economy in some way.  But given the right model, could someone exist solely on this kind of system for any length of time? Dibspace founder, Dominic Canterbury, plans to do just that, paying for everything from rent to food for an entire year using nothing but virtual currency.

Dibspace is a free, online marketplace that brings together a community of consumers and merchants, creating a venue for the barter and exchange of services through the use of Dibits (1 Dibit = 1 Dollar). Unlike other models, one you invest “real” money into the Dibit community, you aren’t able to cash it back out, requiring a similar leap of faith in the solvency of a new kind of  monetary system.

The site explains the basic thinking:

Dibits pick up where the dollar leaves off. Even in a strong economy there’s a whole lot of productive hours that go unfilled. Why? Because consumers don’t always have enough dollars to afford to consume it all. To fill that gap, a specialized currency is actually necessary.

Consider the current economy. Cash is getting harder to come by and people are spending less. As a result, businesses are getting less work and consumers have more unmet needs. In economics-speak, we’re value rich but cash poor. Dibspace.com makes it possible for businesses and consumers to continue to trade even when the US dollar isn’t up to the job.

While clearly a PR ploy, the experiment is an interesting look at how people and businesses might eventually connect on a more meaningful level of transaction, ultimately adding more value to the community as a whole.

Dibspace

[via TechCrunch]

[image via Tama Leaver on Flickr]