Earlier today, we had published an opinion piece on John McAfee’s announcement that he was all set to launch his new fiat currency, McAfee Coin and what it could imply.
Just hours after the article went live, McAfee reached out to Crypto-News India and explained exclusively how this crypto-backed fiat currency would work.
In a Twitter message, McAfee explained, “What is the McAfee Promissory Note?
The McAfee Promissory Note is the first Fiat currency collectors item that is 100% guaranteed as forgery proof. Each note is connected to the blockchain by a token or by a series of tokens. The notes can, in a short, indeterminate period of time after release, be redeemed for real world services. When the redemption period is terminated by the unplanned death of the prime asset of the redemption process, then the only value of the promissory notes will be as collectors items.
REDEEMING THE NOTES
On the back of each note note are written the procedures for redeeming the note. Each note may be redeemed for a private meeting with Mr. McAfee. The denomination of the note determines the time allocated for the meeting. A “one” denomination note can be redeemed for one minute with Mr. McAfee. At 50 denomination note may be redeemed for 50 minutes. An individual is limited to a maximum of 100 units.
To redeem a note or collection of notes, the note holder must show up, in person, at an address in Mexico to redeem their notes (meeting times with Mr. McAfee). The redemption center will be open only between the hours of one and three. On the back of every note will be written this redemption procedure:
1. Show up between one and three, only.
2. Turn in your note and you receive a date, time, and address where you will meet Mr. McAfee. The meeting place may be in any part of the world. The note will be archived.
3. Only one set of notes may ever be redeemed by one individual. Maximum time allotted will be 100 minutes per person.”
Naturally the follow-up question to this would be how would this currency be connected to blockchain?
He elaborated further saying, “Each McAfee promissory note is denomination and serial number unique and each note is tied to one or more cryptocurrency coins called “McAfee Redemption Units” (MRUs). A coin identifier or list of coin identifiers is distributed with the note as a separate, collectible document – a paper wallet. It is expected that this paper wallet will be stored in a separate location from the note. None of the coins are initially “activated” however. Coins become activated if and when a note holder chooses to “convert” his or her Fiat note through a process of reverting the note(s), through mail or other means, to the MRU Foundation – the organization responsible for archiving and caring for the physical notes. There may be a processing fee for conversion.”
Readers should note, that in this context, “conversion is not the same as redeeming.” If a currency holder wishes to convert the promissory note, he can send it to the Foundation where it’ll be archived, which will prevent any duplication. Following that, the relevant value of MRU will be immediately deposited into the holders’ cryptocurrency wallet.
So far there are 341,000 notes of different denominations that have been printed on currency paper with a total of 6,050,000 redemption units. No additional notes will ever be printed and the printing plates have been destroyed. Currently, the face value of each MRU unit is $9.95.
Apart from the feeling of incredulousness we had been experiencing, the question that had been haunting most of us was WHY? Why go through all this trouble to launch a currency? Private citizens, even with means to do so, don’t do it. We put it down to one of McAfee’s eccentricities and shrugged it off. However, he answered our question.
He said, “Redemption is purposely made very expensive. My followers are are hugely loyal and I feel certain that many will go through time and huge expense for the opportunity to spend private time with me. See what this might do to the fundamental value of each redemption unit. If the value of a unit is based even remotely on the cost of redemption, which people are willing to pay, then the notes will immediately skyrocket. But the big key is in the way I have structured the auction sites. Cannot tell you more now.”
We hope this partial explanation will answer some doubts that users may have had. We’ll definitely be tracking this story as and when it develops.
Watch this space for more updates.
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