FAQ Answers for You

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Who created Cogito?

Principality of Cogito was first developed in the early 1990s by a reclusive dyslexic entrepreneur. The mastermind documentation around the technology and concept was locked away for many years until it was stumbled upon in early 2017.

Who controls Cogito?

Cogito is managed by a highly skilled and competent board who are based in different countries around the world. Their backgrounds are in law, accounting, IT, governance, risk management and customer services systems.

How does Cogito work?

By late 2020, Cogito will function to a user as a mobile app or computer program that provides a personal Cog account and allows a user to send and receive Cogito Cog, no different to current banking transactions.

Behind the scenes, the Cogito network is sharing different ledgers, some components use “block chain” and others use Cog © ALDS, (agreed ledger distribution side chain). These ledgers contain every transaction, allowing a user’s computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending Cogito Cog from their own Cog addresses. In addition, anyone can process related transactions using the computing power of their device and earn a tax rebate in either the Cog or fiat for this service.


How do I acquire Cog?

Cog payments will be easier to make than debit or credit card purchases, and can be received without a merchant account. Payments are made from an account application, either on your computer or smartphone, by entering the recipient’s address, the payment amount, and pressing send. To make it easier to enter a recipient’s address, many accounts can obtain the address by scanning a QR code or touching two phones together with NFC technology.


How difficult is it to make a Cog payment?

Cogito is managed by a highly skilled and competent board who are based in different countries around the world. Their backgrounds are in law, accounting, IT, governance, risk management and customer services systems.

What are the advantages of Cog?

Payment freedom: It is possible to send and receive the Cog anywhere in the world at any time. No bank holidays. No borders. No bureaucracy.No delays. Cogito allows its users to be in full control of their money.

Low costs: There is a 3% transaction tax to receive Cog, and a 3% transaction tax to send Cog. Taxes are in fiat from your Cogito euro account. Businesses with high turnover in Cog are able to negotiate a lower tax rate.

Fewer risks for merchants: Cog transactions are secure, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent chargebacks, and there is no need for PCI compliance. Cogito carries out comprehensive KYC and AML checks on all paid up members. Merchants can easily expand to new markets where either credit cards are not available or fraud rates are unacceptably high. The net results are lower costs, larger markets, and fewer administrative costs.

Security and control: Cogito users are in full control of their transactions; it is impossible for merchants to force unwanted or unnoticed charges as can happen with other payment methods. Cog payments can be made without personal information tied to the transaction. This offers strong protection against identity theft.

Cog can only be transacted on the Cogito banking platform, effectively a single global bank which means all transactions can be audited and checked. This is the highest level of security as unlike traditional currency, Cog can not be transferred to a foreign bank.

Value tied to euro: Cog is tied in value to the euro, so in reality it is more like a barter system than a digital currency. There is no real speculative opportunity in the trading of Cog. This provides security for users who will know the value of their Cog will be stable today and tomorrow.


What are the disadvantages of Cog?

Ongoing development – The Cogito app is in active development. By 2021 new tools, features, and services will be released to make the Cogito Cog available for everyday transactions.

Why do people trust Cog?

Cogito is open about how the Cogito economy is structured, the management will be reporting regularly on the status of the debt reserve fund and the true value balance of the Cog. This is completely different to most banks for example who leverage off capital or use other complex leverage methods where the risk to clients is near impossible to understand.


Can I make money with Cog?

You should never expect to get rich with Cog or any emerging technology. It is always important to be wary of anything that sounds too good to be true or disobeys basic economic rules. Cogito does offer the ability to earn income. This is through developing the Cogito user network. You can be rewarded for life from the activity of those people you introduce and the further developing network beyond them.

Cogito also encourages JV or referral to our investment modules, you can make contact through the website if you have a business, contacts or an idea that you believe would suit our Cogito family.

Cogito is a growing space of innovation and there are business opportunities that also include risks. There is no guarantee that Cogito will continue to grow even though it has developed at a very fast rate so far. Investing time and resources on anything related to Cogito requires entrepreneurship. There are various ways to make money with Cogito such as networking, investments or running new businesses. All of these methods are competitive and there is no guarantee of profit. It is up to each individual to make a proper evaluation of the costs and the risks involved in any such project.


Is the Cog fully virtual and immaterial?

Cog is as virtual as the credit cards and online banking networks people use every day. Cog can be used to pay online and in physical stores just like any other form of money.


Is Cogito anonymous?

Cogito is designed to allow its users to send and receive payments with an acceptable level of privacy as well as any other form of money. However, Cog is not as anonymous and cannot offer the same level of privacy as cash. The use of Cog leaves digital records. Various mechanisms exist to protect users’ privacy, and more are in development. Cogito offers various corporate structures such as foreign trusts and companies to those people that want levels of security and asset protection. Having said that, Cogito still requires the beneficiaries of such entities to complete the same KYC and AML procedures as all our members.

Some concerns have been raised that private transactions could be used for illegal purposes with Cog. However, it is worth noting that Cogito will undoubtedly be subjected to similar regulations that are already in place inside existing financial systems. Cog cannot be more anonymous than cash and it is not likely to prevent criminal investigations from being conducted. Additionally, Cog is also designed to prevent a large range of financial crimes. Cogito does not support the use of Cog being used for illegal activity and reserves its right to close any Cog account used for such activities.


Can Cogito scale to become a major payment network?

The Cogito network is designed and being built to handle global large scale users and transactions right from the start. An important part of that is our customer service division which is built to handle four million clients from the start.


What is Cogito?

The Principality of Cogito was established as a decentralized libertarian state. It now stands as one of the last of the safe havens that has not been controlled via large government sanctions.

How does it work?

The Principality of Cogito is decentralized which provides the ultimate security for people who wish to register and operate their business and investment affairs without the highly regulated controls placed by governments desperate to hang on to their diminishing taxable base .

What is a haven?

Cogito is a tax free zone with common-sense laws and minimal fees for establishing and conducting your business. It has no reporting agreements with any other jurisdiction.

Who control Cogito?

The Constitution of the Principality of Cogito details the legalities around the structure of power and control for Cogito. In simple terms the Principality of Cogito is divided into eight regions which each have an elected board in a democratic process by the Digital Citizens.


What is digital citizenship?

Digital citizenship is a commitment to be involved in the society which is Cogito. Becoming a digital citizen gives you the right and ability to register a trust and company and thus access the safe Haven of the Principality of Cogito.

Why do I need to register?

The initial registration gives you the ability to keep abreast of developments in the Principality of Cogito and start earning Cogito Cog from the referral incentive.

Why do I need to register a trust?

By establishing a discretionary trust, you will be settlor and protector of the trust, (settlor means you supply the initial assets and protector means you have veto rights over important decisions of the trustee). Cogito Corporate Trustee Ltd will act as trustee. You can select the beneficiaries of the trust. Do not include yourself. The reason you are not included as a beneficiary is that it compromises the independence of the structure from you. This helps protect you against a claim of tax liability at home.


I already have a business, why do I need to register for a trading company in Cogito?

There is no obligation to set up a company in Cogito. The reason that you would register a business in Cogito is that without a Cogito registered company, earnings in Cogito would most likely be taxable in your country of residence.

What is the purpose of an investment company in Cogito?

Citizens that register an investment company will have access to the Cogito stock exchange which will list all of the investments available through Cogito. Contact us to keep informed about the date of stock exchange opening.

The Cog

What is the Cog?

The Cog is the currency of the Principality of Cogito. The Cog is asset and cash backed and linked in value to the Euro. It will have the ability to be used in everyday life. The Cog bridges the gap between the traditional bitcoin model and the global financial markets.

How can I get Cogs?

1. As an initial offer you will be able to purchase Cog at a discounted rate for capital of your Cogito companies. You can earn the Cog through sponsoring others and as a result of the business they generate.

2. You can also apply for MyDCs credit facility.

By 2020 you will be able to use them as payment for goods or services.


Can I use Cogs in everyday live?

The Cog is a fiat currency and is legal tender between Cogito digital citizens. In 2020/21 we will launch the Cog app which will enable the Cogito Cog to be used in everyday transactions.

Can I trade Cogs?

No. The Cog is not intended to be used in trading with other currencies because it is a centralised currency and cannot be transferred to another banking system. This protects the Cog from the possibility of money laundering.

What about Cogito and consumer protection?

Cogito is freeing people to transact on their own terms. Each user can send and receive payments in a similar way to cash. Cogito provides a dispute mediation services for any issue that arise from transaction problems. Such services could allow a third party to approve or reject a transaction in case of disagreement between the other parties without having control on their money. As opposed to cash and other payment methods, Cog always leaves a public proof that a transaction did take place, which can potentially be used in a recourse against businesses with fraudulent practices.

It is also worth noting that while merchants usually depend on their public reputation to remain in business and pay their employees, they don’t have access to the same level of information when dealing with new consumers. The way Cog works allows both individuals and businesses to be protected against fraudulent chargebacks while giving the choice to the consumer to ask for more protection when they are not willing to trust a particular merchant.

Cogito’s goal is to attract a family of members with a higher level of integrity that suit our corporate values.



Is Cogito legal?

Cogito principals have spent several hundred thousand euro on legal advice. However, legal advice cannot cover all countries regulations. Cogito has made every effort to ensure compliance with global KYC, AML regulations and most internationally used common law.

Regulators from various jurisdictions are taking steps to provide individuals and businesses with rules on how to integrate this new technology with the formal, regulated financial system. For example, the Financial Crimes Enforcement Network (FinCEN), a bureau in the United States Treasury Department, issued non-binding guidance on how it characterizes certain activities involving virtual currencies.

It is important that you obtain satisfactory legal advice on how you use or promote Cogito as it is most likely the user that runs the risk of a regulatory breach than Cogito where we are not domiciled in your country.


Is Cogito useful for illegal purposes?

Cog is money, and money has always been used both for legal and illegal purposes. Cash, credit cards and current banking systems widely surpass Cog in terms of their use to finance crime. Cog can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks.

Cog is designed to be a huge step forward in making money more secure and could also act as a significant protection against many forms of financial crime. For instance, Cogs are completely impossible to counterfeit. Users are in full control of their payments and cannot receive unapproved charges such as with credit card fraud. Cogito allows money to be secured against theft and loss using very strong and useful mechanisms such as backups, encryption, and multiple signatures.

Some concerns have been raised that Cog could be more attractive to criminals because it can be used to make private and irreversible payments. However, these features already exist with cash and wire transfer, which are widely used and well-established. The use of Cog will undoubtedly be subjected to similar regulations that are already in place inside existing financial systems, and Cog is not likely to prevent criminal investigations from being conducted. In general, it is common for important breakthroughs to be perceived as being controversial before their benefits are well understood. The Internet is a good example among many others to illustrate this.


Can the Cog be regulated?

It is possible to regulate the use of Cog in a similar way to any other instruments. Just like the dollar, Cog can be used for a wide variety of purposes, some of which can be considered legitimate or not as per each jurisdiction’s laws. In this regard, Cog is no different than any other tool or resource and can be subjected to different regulations in each country. Cog use could also be made difficult by restrictive regulations, in which case it is hard to determine what percentage of users would keep using the technology. A government that chooses to ban Cog could prevent domestic businesses and markets from developing, shifting innovation to other countries. The challenge for regulators, as always, is to develop efficient solutions while not impairing the growth of new emerging markets and businesses.

Cogito supports a productive level of regulation if it truly protects consumers and the businesses using Cog. Cogito doesn’t support regulation designed to control the market in order to protect companies that are threatened by emerging technology. We see this as anti-competitive behaviour.


What about Cogito and taxes?

Tax Liability: Each country has its own tax laws and so this is not intended to be tax advice. What is proposed in this document is very general and should work for most people in most jurisdictions.

You should make up your own mind or seek independent tax advice to make sure, before committing, that the jurisdiction of your citizenship and/or nationality will not succeed in a claim that your Cogito structure re constitutes “tax evasion”.

Tax in general: If you are a trader of cryptocurrencies, depending on your nationality and where you live, there is a very high chance you are liable for tax on the profit you make.

But profit does not necessarily mean cash in your bank in the currency in which you pay your tax. It more often than not means unrealized increase in paper value.

Let’s say you started investing $1,000 to purchase, say bitcoin, and you have then used the bitcoin to buy other coins. You have been buying and selling for the whole year and the value of all your coins on paper is now $50,000. You may be liable to pay tax on that entire increase in value.

From our experience, the timing on the need to pay tax is always poor. This may force you to sell at a time when the market is down or when a strategic position you have taken has not matured.

Cogito Legal Structure: Better not to make that profit for yourself! The Principality of Cogito legal structure is designed to let you make the decisions when and if you need to pay tax at home. The recommended structure for crypto traders includes a discretionary trust and a Cogito trading company.


Why do I need to register?

The initial registration gives you the ability to keep abreast of developments in the Principality of Cogito and start earning Cogito Cog from the referral incentive.


How are Cogito Cogs created?

Cogito Cog are generated by Cogito on an as needs basis. Initially through a two year basic Cog payment of C150 per week to all new members, also through sale of company capital for new company registrations. Prior to going fully live for trading businesses that have registered will have a special offer of credit facilities made to them. After becoming fully live it is expected the only way to obtain Cogito Cog will be through buying and selling goods and services and the basic universal income.


Who determines the Cog price?

The price of a Cogito Cog is determined by the value of the euro. Cogito systems run a real-time API adjusting all local currency transactions to the Cog/Euro value.

Can the Cog become worthless?

No, Cogito Cog is currently tied to the euro and the debt reserve systems in place are there to ensure that value backing is stable.

What protection is there from failed business?

Cogito takes a percentage from every transaction and accumulates it in a debt reserve fund. This debt reserve fund is a cash deposit fund to offset any potential losses if Cogito is unable to get full repayment of a Cog debt. Disclosure of the debt reserve fund will be made to all members on the website once launched. In addition Cogito holds a percentage of every investment and gets a percentage return from each investment. A share of all of this accumulates in the debt reserve fund to provide the asset and cash backing for Cog.


Does Cogito unfairly benefit early adopters?

Some early adopters will have some benefits because they took risks and invested time and resources in a still to be proven technology that was hardly used by anyone. Other early adopters will work hard to develop the network of businesses and the rewards for that may be highly lucrative. This is very similar to investing in an early startup that can either gain value through its usefulness and popularity, or just never break through. Cogito is still in its infancy, and it has been designed with a very long-term view; it is hard to imagine how it could be less biased towards early adopters, and today’s users may or may not be the early adopters of tomorrow.



How does Cogito work for my everyday business?

Cogito is great for business in a variety of ways.

  • It can encourage new clients to select your goods and services over one where they normally pay with cash.
  • It can provide you with a method to obtain payment from slow paying clients.
  • Interest free funding
  • It provides you with potential to tender competitively.
  • It opens new supply lines globally from the trusted network of members.
  • It provides additional income opportunities from the network of people and businesses you introduce.
  • It provides an alternative incentive option for staff who also are members.

Can I have separate business and personal Cog accounts?

Yes, when you register your business with Cogito we set up a separate set of Cog accounts for your business. You will be able to view personal and business accounts when you log in. You will also be able to manage each account, select your preferred account for sales, purchases and receiving commissions.


How do convert Cog into fiat?

Cogito does not offer the option to withdraw cash from your accounts. That’s not to say we wont in the future, but as it stands this creates a lot of regulatory issues and we believe the risks versus rewards to our members do not warrant offering cash withdrawal.

Can I limit the amount l sell on Cog?

Yes, it is important for your business to manage your cash flow. We do encourage setting a Cogito Cog sales budget for the month / year and steadily build the Cog into you normal business strategy.

Can I charge more for product sold using Cog?

Different countries have different regulations on this. We advise you to check your local regulations. It is not a practice we condone.

What tools are available to communicate to other members that I accept Cog?

Cogito is putting together a toolbox for businesses. We plan that this will include point of sale materials, branding for advertising, trade nights, account managers for businesses and an online market place. We would welcome other suggestions.

How do I apply for a Cog overdraft?

Once registered and you have been through the KYC and AML process you will have a link available to you to apply for a credit facility.

What fees and interest rates are there for a Cog overdraft?

Fees are determined by the amount borrowed and other factors in the loan. Interest rate is zero.

What security do I need to provdie?

This depends on the facility so it can range from no asset security through to acceptable assets.

How do I account for Cog in my company accounts?

Cogito provides you with the ability to export all your transactions using a variety of formats, which can then be imported into your accounting software. We are working with some of the leading software providers to provide real-time synchronization for transactions also.

What taxes do I pay?

Cogito will not give tax advice for your local jurisdiction. You need to check with your accountant. Each country has different ways of charging taxes and so they are best positioned to advise you. In Cogito you only pay a maximum 3% purchase or 3% sales tax on each transaction.


Is Cog secure?

The Cogito technology – the protocol and the cryptography – has a strong security track record. Cogitos most common vulnerability is in user error. Cog account files that store the necessary security cannot be accidentally deleted, lost or stolen.

What is KYC and AML?

KYC stands for ‘Know Your Customer’ and AML stands for ‘Anti-Money Laundering’. It is the process of a business identifying and verifying the identity of its clients. This regulatory process is a legislative requirement in many jurisdictions to ensure the security and integrity of the system.


Could users collude against Cogito?

No. Any Cogito client that doesn’t comply with the same rules cannot enforce their own rules on other users. As per the current specification, double spending is not possible on the Cogito systems, and neither is spending Cog without a valid signature. Therefore, it is not possible to generate uncontrolled amounts of Cog out of thin air, spend other users’ funds, corrupt the network, or anything similar.


Is Cogito vulnerable to quantum computing?

Yes, most systems relying on cryptography in general are, including traditional banking systems. However, quantum computers don’t yet exist and probably won’t for a while. In the event that quantum computing could be an imminent threat to Cogito, the protocol could be upgraded to use post-quantum algorithms. Given the importance that this update would have, it can be safely expected that it would be highly reviewed by developers and adopted by all Cog users.


Still have more questions? We can help you. Principality of Cogito has a 24hr 7 day help desk chat. Ask any questions you have with our assistant in the Cogito chat on every page.