A Brief Explanation Of The GCR.

[Luigi1]

Here's an article of Dinarian interests...

For educational purposes, only.

Treat as a rumor.  Not verified.  Your opine.

 

 

 

 

FROM OTHER SOURCES:         The GCR & The Future Of A Global Currency.

ARTICLE:  The GCR: What Is The Future Of A Global Currency.

 

The Global Currency Reset (GCR) typically refers to a hypothetical event in which the world’s currencies are supposedly “reset”.  The GCR looks at new values based on the revaluation of specific currencies & the devaluation of others.  Proponents of the GCR theory argue that this reset is necessary to address the current flaws in the global financial system.   A GCR can level the playing field for developing nations.

 

 

There are several impacts that global currency changes can have on individuals & their businesses, global mobility & investing.

 

A Brief History Of Fiat Currency (Modern Money).

Fiat currency is not backed by a physical commodity such as gold or silver but is based on confidence & trust in the issuing government or central bank.

 

Bretton Woods Gold Standard.

The Bretton Woods Agreement of 1944 established the US Dollar as the world’s reserve currency & pegged it to the value of gold, providing a fixed ER system.  After World War II, governments sought to manage their economies& stabilize their currencies.

 

The agreement required countries to guarantee the convertibility of their currencies into US Dollars to within 1% of fixed parity rates, with the Dollar convertible to gold bullion for foreign governments & central banks.

 

Move to the PetroDollar. 

This type of fiat policy lasted until 1971, when the US government ended the gold standard.  The move away from the gold standard was another “global currency reset” at the time & has existed for the last fifty years.

 

Shortly after 1971, the term “PetroDollar” refers to the system that emerged whereby oil-exporting countries agreed to price their oil exports in US Dollars.  The PetroDollar allowed the US to maintain its dominance in the global financial system & helped to support the value of the US Dollar.

 

Several currencies are pegged to the US Dollar, a common strategy in the Caribbean & several of the citizenship by investment countries. The East Caribbean Dollar is the primary currency across all five CBI countries & investors can settle their financial investment requirements in US Dollars to obtain citizenship.

 

 

Turkey’s citizenship by investment programs pricing is in US Dollars.  Although in this instance, investors need to convert their US Dollar into Turkish Lira.

 

The Global Currency Reset.

Potential Benefits and Challenges of a Global Currency Reset.

Proponents of a global currency reset (GCR) argue that there could be several benefits to a global currency reset. Some hope that a GCR will help to reduce the disparity in wealth & income between countries & promote greater financial fairness by reducing the dominance of a single country’s Currency in the global financial system.

 

A currency reset moves away from a monetary system focused on short-term profits & speculation. Additionally, a GCR could promote a more efficient allocation of resources & investment in long-term development.

 

In this regard, the global currency reset reduces geopolitical tensions by reducing the dominance of a single country’s currency in international trade & finance and could promote greater cooperation & stability in global economic relations.

 

Proposed Models for a Global Currency Reset.

As there is no official movement or proposals on a currency reset, it is challenging to nail down one model that can be adopted.  That being said, here are four potential options for a global currency reset.

 

 

A Global Reserve Currency.

Under this model, a single global reserve currency would replace the current system, in which the US Dollar is the dominant reserve currency.  This global Currency could be backed by a basket of commodities or other currencies & managed by an international body such as the International Monetary Fund (IMF).

 

Regional Currencies.

Another model for a GCR would involve the creation of regional currencies within specific geographic areas.  For example, the Euro is a regional currency used within the European Union.  Under this model, several regional currencies could replace the US Dollar as the dominant global Currency.

 

Blockchain-Based Currencies.

Some proponents of a GCR have suggested that a blockchain-based cryptocurrency is ideal for replacing the current system.  This Currency would be based on decentralized ledger technology & managed by a distributed network of computers rather than a central authority.  It is possible that Bitcoin or Ethereum be the global settlement cryptocurrency in the future.

 

There are a few citizenship by investment nations that are forward looking with regards to a GCR.  Antigua & Barbuda’s Digital Assets Business Bill & Saint Kitts & Nevis Virtual Assets Bill are two pieces of legislation that allow registration of businesses interacting with cryptocurrencies.  One step closer to allowing investors to pay for citizenship directly with crypto in the future.

 

Central Bank Digital Currency (CBDC).

Similar to a blockchain-based currency, A CBDC is a digital version of a country’s fiat currency issued & backed by the central bank of that country.  It operates on a centralized ledger & is subject to the central bank’s monetary policy.  The purpose of a CBDC is to provide a secure & efficient means of payment while also providing greater transparency & control over the monetary system.

 

Central Digital Bank Currencies (CBDC) or Cryptocurrency in the Global Currency Reset.

One of the biggest global currency resets will be a central bank digital currency or cryptocurrency.  Governments favor a CBDC because of their ability to control & have absolute visibility.  Cryptocurrency & peer-to-peer transactions do not offer the government such control.

 

Is a Central Digital Bank Currency (CBDC) a Cryptocurrency without Privacy?

Governments are investigating the use of CBDC for a variety of reasons.  One of the primary motivations is to increase financial inclusion.

 

CBDCs could provide access to financial services for people who do not have access to traditional banking systems.

 

By providing a digital payment system that does not require a bank account, CBDCs could help to reduce the number of unbanked individuals.  Another potential benefit of CBDCs is improving payment system efficiency & leading to faster & more cost-effective transactions.

 

CBDCs could also provide central banks with additional tools for implementing monetary policy.  For example, a CBDC could have negative interest rates, stimulating economic growth during periods of economic downturn.  Governments using a CBDC can offer greater protection to consumers against f***d & theft. All transactions are available on a secure, tamper-proof ledger.

 

A CBDC will require its users to complete a KYC before being able to transact.  There is the potential for privacy & encryption technology, but governments will unlikely align this way.

 

 

Global Cooperation of a CBDC as the Currency Reset.

If Nigeria’s CBDC is anything to go by, there will be severe pushback from a large portion of the population.  The opposing viewpoint from Nigerian citizens is the manner of design of the Currency, the lack of trust in the government & central bank & the perceived benefits & drawbacks of the system.

 

A CBDC raises privacy concerns using a centralized ledger to record all transactions.  The CBDC would give the government or central bank issuing the CBDC a high degree of visibility into individuals’ financial activities.  Although a global currency reset and CBDCs can include zero-knowledge privacy, there will be doubt among potential users.

 

Alternatively, countries like El Salvador adopted Bitcoin as a legal tender & the use of StableCoins as transaction currencies.  A stablecoin is pegged to the US Dollar but is a cryptocurrency, allowing users to transact anonymously.  Previously bankless citizens now being able to engage in financial transactions with relative ease.

 

 

If privacy is not a concern for businesses and investors, a global currency reset can offer several benefits for business transactions.

 

Faster & more efficient payments.

-Lower transaction costs.

-Improved security and f***d protection; &

-Increased access to financial services.

 

Impact on Citizenship by Investment and Golden Visa Programs.

One advantage of using a CBDC for citizenship by investment is a easier & faster option for investors to transfer funds.  CBDC  investors can move their investment funds more quickly & securely than with traditional payment methods.

 

Additionally, because the details of all transactions are on a secure, tamper-proof ledger, it may be easier for governments to track & verify investment transactions.  Seeing each transaction could help to prevent f***d & ensure compliance with citizenship by investment program requirements.