General Questions

Is the QBaan money?

Yes and no. It is as valid as any other currency in circulation as far as users are concerned. Legally, the QBaan is not money. The IRS has ruled that it is a commodity, like gold or silver.

What gives the QBaan its value?

The value of the QBaan comes from the same properties that give all money its value. It is fungible, recognizable, limited, private, liquid, costly to obtain, valued, useful for trade, useful as a store of value, and possession is ownership.

Are QBaan as safe as my credit cards?

No. QBaans are as safe as cash. Actually, they are somewhat safer because they can be backed up. Carrying and spending QBaans is somewhat safer than carrying and spending cash. But it is not as safe as credit cards.

It is possible for a bank to create a QBaan credit card. In that case, the answer is yes.

Are QBaans as safe as my debit cards?

It really depends on how you define safe. If you lose your debit card and your PIN is written on the back of it, your money isn’t very safe.

Carrying and spending QBaans is somewhat safer than carrying and spending cash. But it is not as safe as monetary instruments backed by banks, such as debit cards. However, it is possible for banks to create QBaan-based debit cards. In that case, the answer is yes.

What happens if I lose my phone containing my digital wallet?

Your wallet requires a PIN to access it. If your PIN is easy to figure out, you’re in trouble when you lose your mobile device.

If you have backed up your wallet, you must quickly access your backup. You use your backup to invalidate the QBaans on your mobile device so that you can use the backup instead.

You must act fast to preserve your lost QBaans. If someone finds your phone and figures out your PIN before you can access your backup, it is possible for them to move your QBaans to their account. The QBaan system will see theQBaans as no longer belonging to the account. They will have successfully stolen your money.

If you have not backed up your digital wallet, then it is just like losing a real wallet with real cash. It’s probably gone.

What happens if my phone dies? Do I lose my QBaans?

If you have backed up your digital wallet, you have not lost anything. You just transfer your QBaans in the backup to another account. The QBaan system will see the QBaans as no longer belonging to the account in your digital wallet. When you get a new phone with wallet software, you can transfer the QBaans to your new digital wallet.

If you have not backed up your digital wallet, then it is just like losing a real wallet with real cash. It’s gone.

What happens if many currencies in the world lose their value at the same time? Won’t that affect QBaans as well?

No. The value of other currencies does not necessarily affect the buying power of the QBaan. This is one of the primary reasons that the QBaan was created.

If, for instance, the value of the US dollar collapsed, it would cause a domino effect that would destroy the value of most national currencies around the world. That is because the US dollar is used to back some 50-60 other national currencies. The current world economic system can’t survive such an event.

However, the QBaan would continue because it has no connection to the politics or finances of any particular nation. In a worldwide economic collapse, it is likely that the QBaan would become more valuable, not less.

Isn’t this a pretty subversive idea?


Ok, the real answer is that it depends on your point of view. QBaans are definitely a disruptive technology. History is filled with disruptive technologies (examples: mass produced cars, hydraulic backhoes, angioplasty, mainframe computers, personal computers, smartphones). It is normal that disruptive technologies should occur in a free market. Disruptive technologies always produce something better.

A free currency market vastly democratizes money and the economy. Everyone can be a player. Anyone can issue a currency and have it succeed if they can gain the trust of a large enough group of people and if their currency has features that people want.

QBaans apply free market principles to money itself. This produces a more stable economy that is designed to maximize the benefit to all of its participants, not just a select few. 

The QBaan System

Why do you use the QBaan Federation to control the money supply? Isn’t that just the same as having a central bank?

The QBaan Federation is not a central bank and doesn’t act like one. It does not control the value of the QBaan. The QBaan system manages that by itself.

Central banks issue money by using debt. That is, all money gets into the economy through lending. Debt-based money requires the payment of interest, which concentrates wealth and power from the many to the few.

Central banks use central planning to control the economy. A few unelected people decide what interest rates will be, what unemployment levels will be, how easy or hard it is to get a loan, and so on. They control virtually all aspects of a nation’s economy.

The QBaan Federation does not create or distribute money through debt. There is nothing in the system that concentrates money or power to the QFed. It finances itself by providing services and making investments. Because it is a nonprofit corporation, any excess money that the QFed makes goes into the escrow fund that distributes money out to the economy when it is needed.

Because the QFed is not run by the government, it is not subject to political expediency. The QFed survives by advancing and maintaining the QBaan. If it fails in that task, people will stop using the QBaan and the QFed will be gone. It has a vested interest in making the QBaan the best form of money available.

Unlike central banks, the QFed can’t make the QBaan into a centrally planned economy. Attempting to do so would cause them to have the same problems as central banks. That is, the QBaan would go through periods of boom and bust. Customers would react by dumping the QBaan and moving to another form of money. To maintain the value of the QBaan, the QBaan must react to changing market conditions, not try to control them. The market must drive the QBaan, not the other way around.

I still don’t like having a central organization. Isn’t there a way you could build the system without the QFed?

If you can think of a way to do that, we invite you to do so. The primary reasons that the QFed exists are to promote the use of the Qbit and to keep the commodities basket current. If you can think of a way for the system to maintain its own commodities basket, please contact us immediately.

The QBaan and the Government

QBaans are seen in some countries as a foreign currency. Don’t legal tender laws make it illegal to pay in foreign currencies?

No and yes. The answer varies by country. For example, legal tender laws in the US state that you must pay debts with US dollars IF you incur the debt first. That is, if you eat a meal at a restaurant in the US, you are in debt to the restaurant and required to pay in US dollars.

On the other hand, if you go to a store to buy something and you and the store agree in advance to pay in something other than US dollars, you can.

Note that it is also possible to pay the restaurant owner in another currency if and only if both you and the owner agree on that in advance. So if the restaurant has a sign that says, “We Accept QBaans” you are free to pay in QBaans and the restaurant owner is free to accept them.

It is also legal in the US to incur debts, take out loans, etc. in foreign currencies if you and the other party agree to do so in advance. As long as everyone involved knows what they’re getting and agrees to it in advance, it’s ok.

In some countries, it is illegal to buy, sell, or fulfill contracts with anything other than the national currency. However, the number of countries that have such laws is around half a dozen.

Some countries may see the QBaan as a commodity rather than a currency (like gold). These countries do not make it illegal to use commodities to buy and sell. But you may have to pay capital gains tax. The digital wallet software is designed to handle this for you.

Won’t the government see this as bad? Isn’t it illegal to mint your own currency?

Some governments will definitely see QBaans as bad, especially repressive regimes.

In most countries, QBaans are perfectly legal because they are a foreign currency or just a commodity like gold or silver. Most countries do not prevent you from using them if both the buyer and the seller agree to do so in advance.

We already use many forms of private currency and currency-like products. Here’s a partial list:

  • Checks
  • IOUs
  • Discount coupon books sold for fundraising activities
  • Discount coupons in newspaper ads
  • Rebates on preferred customer cards
  • Airline miles used to gain discounts on flights
  • And many, many more.

Outlawing QBaans means outlawing all of these as well. Virtual cash is deeply engrained in our economic system. The QBaan system is just a generalization of existing practices.

What if the government tries to shut down the QFed?

Nothing, that’s what. As far as we know, the QBaan system stays well within the laws of all democratic governments. Free societies will be the place where the QBaan system thrives. QBaans are by the people and for the people. They strengthen individual rights and empower everyone in the system.

Suppose one repressive government (or other group) shuts down the QFed’s headquarters by bombing it completely out of existence. It won’t make any difference at all. Almost all of the software is built on free and open source libraries. Anyone can use them to create their own digital currency system anywhere in the world. It really only takes one dedicated person to reconstitute the QBaan system or something very similar. Going after any one person or group won’t make any difference at all. You can even shut down the entire Internet and the system can survive using the telephone network, CB radios, or HAM radios.

Qbits and Bad Guys

Can’t bad guys use QBaans to evade taxes, launder money, and stuff like that?

Yes. But they already do that with cash and by many other means. Anything of value can be used to accomplish those purposes.QBaans are no different in that respect. Therefore, the QBaan is no worse than what we already have. And in many ways, it is better.

Talking about the bad guys using QBaans is, in fact, deception by misdirection. The preferred currency of dictators, drug cartels, warlords, and bad guys around the world is the US dollar. In fact, these days, bad guys in certain places in South America, Asia, and Africa actually buy banks so that they can launder their ill-gotten gains . They move their money across national borders disguised as legitimate bank transactions.

Note: For more information on the activities of organized crime using legitimate banks to launder money, please see How the Russian mafia use the banking system (especially Britain's). For information on known members of organized crime that are owners or officers of mainstream banks, see http://rumafia.com.

QBaans are not even a consideration to most criminals. If we say that the QBaan should be eradicated because bad guys use it then we must say the same of the US dollar.

In addition, criminal organizations are already issuing their own digital currencies based on bitcoin technology. Western law enforcement reports that at least three such currencies are already in circulation in Russia and central Asia, and their acceptance is quietly growing around the world . If legitimate organizations don’t get into this, the bad guys will. They won’t care if countries outlaw it. They’ll do it anyway. 

Note: For information on digital currencies minted by organized crime, see Bye, Bitcoin: Criminals Seek Other Crypto Currency, and Mo Money Mo Problems.

And with the problems most national currencies are experiencing, people around the world will have profound motivations to accept and use digital currencies sponsored by criminal organizations as long as they’re stable. It’s actually possible that if we don’t create a free market of competing currencies and our national currencies collapse, we could unintentionally hand over control of our entire worldwide economy to criminals. And no one could buy or sell unless they participated in the criminal economy. Hopefully we never see the conditions that could lead to such an extreme scenario. But applying free market principles to money itself ensures that this can’t happen.

Technical Questions

Coming Soon

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