People's Financial Markets

POEMs (Public Official E-Markets) is a system comprising thousands of online markets initiated by legislation​ then funded, designed and run by for-profit, operators. Forced to focus on lower-value transactions, the system can seamlessly include a wide spectrum of financial markets, attractive to any individual or organization that wishes to lend, invest, insure, or hedge on a small scale. 

 

The cornerstone of this model of finance is digital "unifunds". Any POEMs user can create a unifund for any purpose, subject only to legal controls. Each unifund (a) takes in digital cash from users who wish to deposit (b) deploys the money to recipients for the fund's defined purpose, typically in return for a charge (c) pays out earnings to its depositors. Thus, a unifund might be instigated to "Lend sums up to $50 for 2 weeks or less but only to borrowers who have previously repaid 10 or more loans".

 

POEMs' operators will have every incentive to develop this structure. The granularity, fractional overheads, open reporting and risk management tools can support activity across thousands of microeconomic sectors.

 

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