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The BRICS Gold Convertibility Problem
• Zero HedgeSpecial: The BRICS Gold Convertibility Problem
"For Gold-backed money to work, 100% convertibility is needed. Paradoxically, convertibility only works when no-one actually converts."
Contents:
1. It's All About Trust
2. QUESTION #1: What do they need to make it work?
3. France Converted… Just Once
4. Blockchain Trust
5. QUESTION #2: What are the risks?
6. Gresham's Law in Action or What Would Joe Do?
7. Bottom Line
8. GoldSeek Article
IT'S ALL ABOUT TRUST
Authored by GoldFix ZH Edit
We just read a piece by Kelsey Williams for GoldSeek entitled: Gold Convertibility – NOT Gold Backing in which the author begins by saying:
The success of any fiat currency or real money substitute (in other words, anything other than gold itself as the medium of exchange) depends on its convertibility into gold – on demand.
That is right.
1 Comments in Response to The BRICS Gold Convertibility Problem
Start out by being a physical gold clearing house. When you issue currency, you have the gold in stock. Each currency bill has a crypto address printed on it, and the bill is made to be counterfeit resistant in other ways, possibly by having two crypto addresses on it, while being listed on only one of, say, twenty revolving blockchains. The hash of the two addresses determines which blockchain it is on, so that the user can safely see that his is not a counterfeit piece. --- Well, there's a little start. Anybody want to fill in the rest of the details?