17.10 Compatibility Relation

Every transfer into an R-account is taxed automatically. It therefore does not require Product Category compatibility. Transfers between different owners into B-accounts are untaxed and are permitted only when the Product Category of the source account and the Product Category of the destination account satisfy the Compatibility Relation.

The Compatibility Relation 𝜥 describes permitted Product or service flow. 𝜥(i, o) means that a Product or service in category i may be supplied as an input to the activity in category o, or that the Constitution expressly permits that relationship. Product or service flow is i → o; payment flows in the opposite direction, o → i.

For an external transfer from source account s to destination B-account d, the category of d must be compatible with the category of s:

𝜥(𝜬(d), 𝜬(s))

The destination supplies the input, so its category appears first in 𝜥. If an import-wholesale account pays a foreign-currency account, the relevant relationship is 𝜥(foreign-currency, import-wholesale). Foreign currency is an input into importing, and the payment moves in the reverse direction.

Mechanical enforcement without business licensing

The CBPS uses only account types, the Product Category of each B-account or R-account, account ownership, and the public Compatibility Relation when evaluating a transfer. It does not inspect a business plan, assess whether a purchase is prudent, decide whether a producer is qualified, or limit the number of competing accounts. Any Person accepting the Central Bank account owner contract may create appropriately categorised accounts and become responsible for using them consistently with their declared activities.