Information-Backed Currency (IBC): Designing a Resilient, Transparent, and Information-Centric Monetary Ecosystem

Fuente: arXiv
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Autore principale: Shukla, Lalit Kumar
Natura: Preprint
Pubblicazione: 2025
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author Shukla, Lalit Kumar
author_facet Shukla, Lalit Kumar
contents The accelerating digitization of economic activity has made information a dominant driver of market expectations, coordination, and systemic risk. Yet contemporary monetary systems remain anchored in architectures designed for material scarcity, institutional authority, or cryptographic constraint, leaving them increasingly misaligned with information-driven economies. This conceptual paper proposes Information-Backed Currency (IBC) as a monetary framework in which verified, high-integrity information functions as the primary source of value creation and monetary stability. Drawing on insights from econophysics, information theory, and cognitive economics, the paper advances the proposition that economic value emerges when information measurably reduces uncertainty within complex systems. Building on this premise, the study develops an architectural model in which currency issuance is linked to quantified entropy reduction achieved through multi-path information verification, reproducibility assessment, and contextual validation. An ethical governance layer, termed the Dharma Protocol, is introduced to ensure that only socially stabilizing, non-manipulative information qualifies as currency-backing input. The proposed IBC architecture comprises four interdependent layers: information ingestion, verification and validation, ethical oversight, and monetization through a Verification Value Unit tied to uncertainty reduction. While the framework is intentionally conceptual and non-empirical, it offers a coherent blueprint for re-imagining monetary governance in an era characterized by information abundance, cognitive constraints, and systemic fragility.
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spellingShingle Information-Backed Currency (IBC): Designing a Resilient, Transparent, and Information-Centric Monetary Ecosystem
Shukla, Lalit Kumar
Physics and Society
The accelerating digitization of economic activity has made information a dominant driver of market expectations, coordination, and systemic risk. Yet contemporary monetary systems remain anchored in architectures designed for material scarcity, institutional authority, or cryptographic constraint, leaving them increasingly misaligned with information-driven economies. This conceptual paper proposes Information-Backed Currency (IBC) as a monetary framework in which verified, high-integrity information functions as the primary source of value creation and monetary stability. Drawing on insights from econophysics, information theory, and cognitive economics, the paper advances the proposition that economic value emerges when information measurably reduces uncertainty within complex systems. Building on this premise, the study develops an architectural model in which currency issuance is linked to quantified entropy reduction achieved through multi-path information verification, reproducibility assessment, and contextual validation. An ethical governance layer, termed the Dharma Protocol, is introduced to ensure that only socially stabilizing, non-manipulative information qualifies as currency-backing input. The proposed IBC architecture comprises four interdependent layers: information ingestion, verification and validation, ethical oversight, and monetization through a Verification Value Unit tied to uncertainty reduction. While the framework is intentionally conceptual and non-empirical, it offers a coherent blueprint for re-imagining monetary governance in an era characterized by information abundance, cognitive constraints, and systemic fragility.
title Information-Backed Currency (IBC): Designing a Resilient, Transparent, and Information-Centric Monetary Ecosystem
topic Physics and Society
url https://arxiv.org/abs/2512.20961