Let us consider savings. Bankers tell us from a young age to save our pennies so that we have them for a rainy day. When our pennies sit idle, some work out there in the world remains unperformed. Surely we can find someone with the ability to create some value if they had access to your pennies. Savings limits the amount of value created in the world.
Capital reserve banking provides the service of distributing these pennies and we can recognize the success banks have had over the last few decades as they have created an increasing amount of value. The profits from banking have gone to individuals who own the banks and not to the people that gave the pennies.
Capital reserve banks do accelerate cash flows as they regularly loan out 10 or more pennies for every one they deposit, but can we find another way that eliminates the profiteering? And what to do with the profits?
We can implement our money time machine and remove the need for the typical banks by using smart contracts. I propose these contracts implement a demurrage(or decay fee, or carrying cost) on cash so that it decays at rate that encourages the spending and / or investing of cash between market participants without the need for intermediary banks.
This system will accelerate the flow of cash far beyond the ability of the fractional reserve banking system. Profits will accrue to those creating the actual activity by returning decayed money backwards through the blockchain so that those that have spent and / or invested their cash with successful enterprises will receive the largest reward. This causes money to gravitate toward the highest value producing nodes in the economy.
Time binds the ability for these nodes to maintain their attractiveness. As common interest in each becomes diluted, innovative nodes will find an opportunity to gain the communities interest. This generates a natural cycle of delivering value to innovative nodes overtime and then retiring them so that further innovations have space to thrive.