strategy
Creating global reference currency
Synonyms:
Terra currencyResolving the incompatibility between financial interests and sustainability issues
Description:
A global reference currency is one both fully backed by a basket of goods and services and internationally backed with the storage costs attached to the bearer of the currency. The storage costs therefore become a demurage fee ("parking charge for money") for this currency. Demurage fee currencies have the opposite effect of positive interest rate currencies, ie they provide an incentive to consider the long-term future as financially relevant today. The use of such a currency would resolve systemically the conflict between stockholders interests and long-term sustainability. Context:
Demurage Currencies Demurage currencies (negative interest rates, not to be confused with inflation currencies) make it possible to re-align financial interests with long-term thinking. Historical precedents are dynastic Egypt and central Middle Ages in Western Europe. Constrains:
Increasing interest rates Facilitates:
Creating global sustainability Subjects:
Type Classification:
G: Very Specific strategies