Get ready for Electronic Gold, denominated in Dollars, Cents and Decimal Cents…
The “only” way to obtain “new” Electronic Gold is with Gold…
Once obtained, Electronic Gold can be used to buy and sell anything of value…
What make’s Electronic Gold different from what we’re currently using, is that it can be redeemed for “Circulating” U.S. Gold Coins…
Our smallest “Circulating” Gold Coin will be a 1/5 ounce $20 Gold Coin…
Our 1/2 ounce Gold Coins will have $50 Face Values…
Our 1 ounce Gold Coins will have $100 Face Values…
Our Electronic Gold can also be used get us “Circulating” Silver Coins, Silver Certificates and Common U.S. Coinage…
I like having Physical Coinage for privacy concerns…
I think of Silver Certificates as being U.S. Paper Coinage…
Anyway…
One Ounce of new Gold mined in the United States will get you $100 in “new” Gold Coins, $100 in “new” Electronic Gold or a Combination of the two…
One Ounce of Gold mined or coming from outside the United States will receive $90 in “new” Gold Coins, $90 in “new” Electronic Gold or a Combination of the two…
Feel free to question anything I post…
That 100 for US mined ounces vs 90 for outside reads like a built in seigniorage, nudging value toward domestic claims and and tighter jurisdiction. From an accountant brain, redemption into circulating coins plus electronic balances can work, but the face values will need clear books so gains dont get misread when people redeem or swap :). Your privacy angle with coinage makes sense, just make sure issuance and redemption records reconcile to claims so folks recieve no surprises at audit time.
I figure most people will not be using our Silver and Gold Coins… Most people will be using Silver Certificates and Electronic Coinage… Holding physical Silver and Gold Coins will not earn returns because of their stability… But it’s nice knowing I can hold as many Silver and Gold Coins I want… The only records we’ll need to keep will be the mintage numbers of our Silver and Gold Coins… Our Silver Certificates and Electronic Gold will Circulate freely, and will always be in perfect balance with our Circulating Silver and Gold Coins…. Banks will be required to have minimum amounts of Silver and Gold Coins on hand, just in case…
If records are only mintage counts, how do you prove Certificates and Electronic Gold are one-to-one with there vault coins and avoid silent over-issue?
In a redemption spike, coins can drain fast, so a clear hard reserve ratio with realitme proof-of-reserves feels key.
Also, please spell out who books seigniorage and mint costs, and where the yield for holders of non-physical units actualy comes from if coins don’t earn returns :)
The U.S. Mint along with the U.S. Treasury will keep and maintain accurate records… It doesn’t concern me it everyone wants to hold their Money in Silver or Gold Coins… That’s their choice… When Silver and Gold Coins are removed from Circulations it means there will be less Silver Certificates and Electronic Gold in Circulation… Most people will be using Silver Certificates and Electronic Gold than Silver and Gold Coins…. You keep making things more complicated than they are… I do love being able to ease your concerns, so feel free to continue asking questions…
I get your point about records and demand, and your saying most will use certificates and Electronic Gold :)
From an accounting view, where does the liabilty for Electronic Gold sit, Mint or Treasury, and do coins redeemed show as an asset held against that?
If banks hold the reserves, who validates them independently and how often, GAO or another body, so redemptions don’t jam up when coins leave circulation?
Also, on the $100 vs $90 minting for U.S. vs foreign gold, is that recorded as seigniorage or a production subsidy, and which fund books it, audits' note it anywhere?
We don’t need to keep track of our Stable Coinage… Electronic Gold will circulate in a similar manner Digital Fiat circulates now… Gold mined inside the U.S. will get the full $100 in Gold Coins per ounce… Gold mined outside the U.S. will receive $90 in Gold Coins per ounce…
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What you say about cash sounds good to me. It's always good to have some privacy, and this provides it. Algorithms today don't actually allow much privacy; they track our data.
I’ll be using Electronic Gold for paying Bills and such… I’ll carry Silver Certificates in my Wallet for everyday spending… I’ll have a Throwaway Electronic Gold Card to pay for amounts lower than a One Cent Silver Certificate… I’ll keep my Personal Electronic Gold Card in a safe place…