Until the middle of the 20th century, currency was linked
to precious metal, usually silver or gold. But after the
2nd world war, paper money started loosing its commodity
cover and became merely a promise to pay.
For the last 70 years, Naim Dangoor has held the view that
merely as a promise to pay, paper money is in fact just
an "I O U" which by definition has to be issued
by the borrower and not by the lender. This would make it
possible for money to be issued not in the name of the central
bank, but in the name of the consumer, thus, saving the
interest charges which consumers have to pay for the use
In June 2001, Naim Dangoor discussed his idea with Chancellor
Gordon Brown and suggested that the Chancellor should consider
applying this principle. 3 months later, the Chancellor
launched a scheme where by senior government employees would
receive an interest free loan of up to £10,000 to
assist them in acquiring a home.
This scheme was expanded 3 years later by raising the amount
We give below more details about the 2 schemes which appear
to have been successful.
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