About CRU

Central Receivable Unit (CRU) is a unit of existing receivables used and spent as money. Though CRU is money like gold is the money it is easily transferable from wallet to wallet and eventually from holder to holder in notes and in coin forms allowing CRU to be used as money. CRU is private money complementing Ura, Fiat, and other forms of money.

 

CRU in circulation originated largely from Resource Mobilization Inc. (“RMI”) United States (U.S.) dollar-based receivables tokenized into a unit(s) named CRU. CRU in circulation and in reserve shall always remain certificates of existing receivables under the authority and management of the Central Receivables Unit Organization. CRU that ceases to exist shall be burnt; meaning it shall be removed from circulation on the date the account debtor pays.

 

CRU is a complement to traditional receivables assignment, which, although it contributed immensely to economic growth since its introduction, is a cumbersome process that has locked out many out of the receivables market. CRU is a simplified receivables assignment that reduces reliance on traditional receivables assignments and fulfills the expectation of the United Nations Convention on Assignment of Receivables in International Trade (“Convention”).

 

General guidelines relevant to traditional receivables assignment apply to CRU. Under no circumstances is CRU guaranteeing account debtors’ obligations; on the contrary, CRU in circulation is the certificate of debtors’ obligation being spent as currency until the debtor pays. Any receivable verified as existing from any market may be purchased and paid for in CRU. CRU is not a cryptocurrency but a store of the value of existing receivables and utilized as money.

 

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What is Money?

Money is value. It is intangible in nature (i.e., it cannot be felt, touched, or smelled). It has intrinsic value (i.e., has value in and of itself).

 Money is money, irrespective of its recognition or acceptance. Money fully vests with its owner(s), granting the owner(s) the authority to provide the means of money transmission (i.e., “Currency”) from one entity to another in a socio-economic environment. Money empowers four key functions, being medium of exchange function, unit of account function, store of the value function, and standard of deferred payment function, as discussed below.

Medium of Exchange Function

Money is the authority that powers exchange. It is a pre-requisite for all exchanges and payments in a money economy (money economy means a system or stage of economic life in which money augment barter in exchanges). In any money economy, the value of any good or service can be derived in the form of money, quoted in terms of a currency. 

Money empowers the medium of exchange function in its form as currency.  Money facilitates trade by making it easier to (i) buy and sell goods and services and (ii) pay and settle financial transactions and debts including taxes in a socio-economic environment compared to barter (barter system still exists today), being the exchange of one monetary good or service for another. Money makes it easier to trade compared to barter because it eliminates one of the major difficulties of barter of fulfilling the mutual or double coincidence of wants.

Unit-of-Account-Function

Unit of Account Function

Money is the common denominator (i.e., Unit of Account) that people use to present prices, record debts, and make calculations and comparisons. Money by empowering its unit of account function (i.e., money as a measuring rod of economic value) makes price determination easier. To be an effective force multiplier, money must eliminate barter’s biggest deficiencies, that is it must end the double coincidence of wants problem and reduce the number of prices, ideally to one per good. It does the former by empowering its medium of exchange function, something that people acquire not for its own sake but to trade away to another person for something of use. The latter it does by empowering its unit of account function as a way of reckoning value. In order to reckon value, money allows comparisons of the economic value of unlike things easily and quickly, for example, to compare apples and oranges, both literally and figuratively. 

For money to empower its unit of account function, it must have the following characteristics: divisible, fungible, and countable. 

Divisible: Unit of Account can be divided so that its component parts will equal the original value. Illustration: If you cut a bar of gold in half, the two pieces together will equal the same value as the original bar.

 

Fungible: One unit is viewed as the same as any other with no change in value. Illustration: 12 ounces of 24-carat gold is no different than another 12 ounces of 24-carat gold. 

 

Countable: A Unit of Account is also countable and subject to mathematical operations. You can easily add, subtract, divide, and multiply units of an account. This allows entities to account for profit, losses, income, expenses, debts, and wealth. For purposes of this Whitepaper, entity means natural persons being all human beings from all walks of life, wherever they are located around the world and juridical persons being all non-human legal entities of all sizes, wherever they are located around the world (hereinafter referred to as “Entities” or “Entity”).

Store of Value Function

Money, once acquired, should over time prove and maintain its value. That is, money empowers the store of value function by its ability to be saved, retrieved, and exchanged in the future, ideally without devaluation. This means that money can be used to purchase the same quantity of goods and services that provide the same consumption value in the future as it can purchase today.

Illustration: U.S. dollar deriving its authority from money owned by the United States of America is stored by many nations as reserve money. Arguable, but the U.S. dollar is the leading store of value in the world today.

Standard-of-Deferred-Payment-Function

Standard of Deferred Payment Function

Money is used as a standard benchmark for specifying future payments for current purchases (i.e., buy now, pay later). This function is a direct result of the store of value and unit of account functions empowered by money. If money is the standard for current prices, then money to function as a deferred payment standard, it must retain value, and it must also store value.

Cru is Money. Cru derives value and authority from United States (U.S.) dollar-based receivables (“the Commodity”) owned and held by Resource Mobilization Inc, its successors, and assigns (“RMI”). 

Cru originates from the claims prepared at the instance of RMI by professional appraisers who traced, verified, quantified, and recorded in the appraisal report the total amounts due and payable to the creditor by the debtors in the RMI Receivables. 

Receivables are defined in the United Nations Convention on Assignment of Receivables in International Trade (“Convention”) as “all or part of or an undivided interest in the assignor’s contractual right to payment of monetary sum”.

Forms of Money

There are three types of money: commodity money, commodity-based money, and fiduciary money.

Commodity Money

Commodity money began as bartering. The commodity itself is the money that people exchange for goods and services. Its value is also directly perceived by its users, who recognize its utility (use-value) as goods in themselves. The first examples of commodities used as money include pearls, precious stones, gold, silver, copper, iron, bronze, peppercorns, salt, tea, coffee, shells, alcohol, tobacco, wine, cloth, silk, nails, cocoa beans, cowrie shells, barley, cows, goats, animal skins, weapons, leather, etc. However, commodity money generally lacks uniformity, it is not useable in all societies, it is a poor store of value, it is not easily portable, and its value is negotiated for every transaction. Because of these inadequacies, money being the value of the commodity instead of the commodity itself was derived and used alongside commodity money. 

Metals were initially only used as currency before they became commodity money. For example, gold and silver were predominantly used as currency for 4,500 years before they became commodity money itself. Early coins first appeared in Lydia in about 680 B.C., and the techniques were quickly copied and further refined by the Greek, Persian, Macedonian, and later the Roman empires. Unlike Chinese coins, which depended on base metals, these coins were made from precious metals like silver, bronze, and gold that had more inherent value. It is at this point that precious metals became commodity money, whose value came from the precious metal it was made of. However, a metallic commodity is plagued by debasement negatives, scarcity of precious metals to mint large coin quantities, and risk of loss or theft when porting large quantities, which led to the introduction of commodity-based money.   

 

Cru is Commodity money, deriving value from the U.S. dollar-based receivables owned and held by Resource Mobilization Inc. 1 CRU is equal to Resource Mobilization Inc Receivables US$ 53.352184, which appreciate annually at the rate of 12.5% calculated and added daily for as long as the RMI receivables remain existing. This means that subject to notifications of the redemption value of Cru updated from time to time on this website by the treasury department of CRO; 1 Cru is redeemable for Resource Mobilization Inc Receivables US$ 53.352184 as updated from time to time on this website by the treasury department of CRO. Cru is exchangeable for its equivalent value in any currency. The market exchange rate for Cru can be any amount and may be different from the vault exchange rates for CRU as updated from time to time on this website by the treasury department of CRO.

Commodity-Based Money

Commodity-based money came into being when commodity owners started using representative claims on units (tokens) of the same commodity. For example, in the ancient empires of Egypt, Babylon, India, and China, temples and palaces often had commodity warehouses that made use of clay tokens and other materials as evidence of a claim upon a portion of commodities stored in the warehouses. Because these tokens could be redeemed at the warehouse for the commodity they represented, they were traded in the markets as the commodity itself or as money for payments. Commodity-based money draws its value from the commodity it is representing and does not involve handling the commodity itself. Commodity-based money is exchanged for the value of the commodity (i.e., it is redeemable for a set amount of the commodity backing it). Commodity-based monies circulate in socio-economic environments alongside other forms of money.

Fiat money is a form of commodity-based money, deriving its value from the physical reserves (i.e., the commodity) of a nation. Fiat money is convertible to the commodity backing it at a fixed exchange rate. For example, the U.S. dollar, when it was linked to gold reserves, drew its value from the gold reserve. The United States delinked its U.S. dollar from gold in a vault being the commodity, replacing it with the entire United States monetary authority. Fiat money is national commodity-based money. It derives its value from the entire resources (“Money”) of the issuing monetary authority (“issuer”), which also guarantees its value in a socio-economic environment which the issuer has authority over. 

 

CRU is commodity-based money, deriving value and authority from the United States Dollar (“US$”) because Central Receivable Unit (“CRU”) are units of RMI receivables (“the commodity”) which are US$ denominated and exchanged without transferring the commodity itself. 1 CRU is equal to Resource Mobilization Inc Receivables US$ 53.352184. The vault exchange rates for Cru will be updated from time to time on this website by the treasury department of CRO.

Fiduciary Money

Fiduciary money derives from the commodity of the issuing authority of the money and commodity held by the fiduciary entity (bank). Fiduciary money began when banks and similar institutions (bank) circulated money from one entity to another during economic transactions by reassigning it from one entity to another for accounting purposes while such money was physically held on deposit at the same bank. Fiduciary money is conveyed via the deposited money substitutes, which represent the deposited money. These money substitutes are passed from one entity to another in daily transactions and settled later by financial institutions, for example, checks. The use of money substitutes increased the portability and durability of fiduciary money, reduced other risks, and allowed people to simultaneously enjoy the use of their money in day-to-day transactions while also keeping the money secure from theft or physical damage.

Cru is fiduciary money. The banks distributing Cru shall, as part of their fiduciary duties, add to the RMI Receivables (“the commodity”) and subsequently issue additional Cru as per market demand.

What is Currency?

Currency is a product of money. It does not have value in and of itself. It is used as a means of conveying money from one entity to another. Currency is tangible, issued by an entity with authority to guarantee its value (the “monetary authority”), empowered by money to be used as a medium of exchange for transactional and payment purposes. Currency derives its value from money owned and held by the issuing monetary authority (“issuer”).

There have been many forms of currency in history. Currency invention began with the early societies, which used an available commodity that had the best combination of durability, portability, divisibility, uniformity, limited supply, and acceptability. The first examples of currencies were commodities used currency such as pearls, precious stones, gold, silver, copper, iron, bronze, peppercorns, salt, tea, coffee, shells, alcohol, tobacco, wine, cloth, silk, nails, cocoa beans, cowrie shells, barley, cows, goats, animal skins, weapons, leather, and so on. However, some currency forms have worked better than others because they were more useful as currency (i.e., have a better combination of currency characteristics).

For example, hay (grassy livestock feed) rarely emerges as money because it is too easy to adulterate with weeds; its low value-to-bulk renders its portability very low due to the trouble and expense of transporting it; and until it is properly baled and stored, a rainstorm can ruin it.

Tobacco, by contrast, has served as a currency because it is more uniform, durable, portable, and easily authenticated than hay. In colonial Virginia, tobacco was turned into a form of currency as well as commodity money when trustworthy and knowledgeable inspectors attested to its quality, stored it in safe warehouses and issued paper receipts for it. The receipts, rather than the tobacco itself, served as an extremely uniform, durable, divisible, portable, and acceptable currency.

The characteristics of a good currency are durability, portability, divisibility, uniformity, limited supply, and acceptability. Below are examples of some of the most powerful currencies in history:

  • Persian daric: The daric was a gold coin used in Persia between 522BC and 330BC. 
  • Roman currency: Currencies such as the aureus (gold), the denarius (silver), the sestertius (bronze), the dupondius (bronze), and the as (copper) were used during the Roman Empire from around 250 BC to AD 250. 
  • Thaler. From about 1486 to 1908, the thaler and its variations were used in Europe as the standard against which the various states’ currencies could be valued. 
  • Spanish American pesos. Around 1500 to the early nineteenth century, this contemporary of the thaler was widely used in Europe, the Americas, and the Far East; it became the first world currency by the late eighteenth century. 
  • British pound. The pound’s origins date as early as around AD 800, but its influence grew in the 1600s as the unofficial gold standard; from 1816 to around 1939, the pound was the global reserve currency until the collapse of the gold standard. 
  • Euro. Officially in circulation on January 1, 1999, the euro continues to serve as currency in many European countries today.
  • U.S. dollar. The Coinage Act of 1792 established the dollar as the basis for a monetary account, and it went into circulation two years later as a silver coin. Its strength as a global reserve currency expanded in the 1800s and continues today.

 

The modern forms of currency include: – 

Cash is the physical paper notes and coins, for example, the U.S. Dollar, which is used as money (reserve money), currency, and legal tender in the United States of America. 

 

Check refers to a paper order that makes a bank transfer money from one entity’s bank account to another.

 

Debit refers to an electronic order for a transfer from a bank account or a prepaid declining balance debit card. 

 

Credit entails the prearranged transfer of funds from the customer’s creditor, a bank, or other lenders, in exchange for a small service fee. 

 

Today the form of Cru currency available is Digital Cru. CRO had authorized the minting of coins denominated in Cru and Cru cents and the printing of Cru paper currency which are issued in the form of Cru notes which will be available soon. 

What is Legal Tender?

Legal tender is the means of conveying money (“Currency”), that is specified and recognized by law (i.e., statute) to be used as a medium of exchange by market participants within the socio-economic territory (i.e., jurisdiction) that the issuer has authority over. The monetary authority issues legal tender to the public through the legally authorized institution.  

Legal tender is a means to settle public or private debts or meet financial obligations, including tax payments, contracts, and legal fines or damages. An example of legal tender is a national currency. A national currency means the legal tender recognized by the nation’s law as legal tenser, that is issued by the nation’s legally authorized monetary authority, circulated within the boundaries of the nation’s jurisdiction, and is the predominant medium of exchange for transactional and payment purposes.

Throughout history, some legal tender(s) have gained widespread use and circulation outside of their jurisdiction and have played an instrumental role in these other jurisdictions of the world. For example, commodity prices are quoted in U.S. dollars despite trading in countries outside of the United States. Some countries have adopted other nations’ legal tender as their own; examples of countries that make use of another country’s legal tender are parts of Latin America, regions like Ecuador and El Salvador, which recognize and accept the U.S. dollar for the exchange of goods and services. On the other hand, some countries have pegged their national currency to another country’s legal tender; for example, the United Arab Emirates has pegged its national currency to the U.S. dollar to keep inflation aligned with expectations and maintain a stable monetary policy regime. 

 

Rarely has a single nation’s legal tender been the exclusive medium of world trade, but a few have come close, such as the U.S. dollar, the Euro, and the Japanese Yen, which today, are recognized as the world’s most widely accepted mediums of world trade. This is because they are the most liquid, issued by a monetary authority with the biggest economy and the largest import-export markets, and have global status as a reliable reserve currency with minimal risk of collapsing. As a result, most foreign transactions are conducted in one of the three currencies. 

Today, Cru is not a Legal Tender in any jurisdiction. Efforts are being undertaken currently to have Cru accepted and recognized as legal tender by governments of the world. 

Monetary System

A Monetary System is a densely interconnected network of money, currency, monetary authority, socio-economic environment, monetary policy, fiscal policy, and financial system. Monetary Systems evolved over the past 150 years to today’s modern monetary systems. The following are types of monetary systems.

Silver Standard Monetary System

The silver standard or/and silver exchange standard was a monetary system based on the precious metal silver. Silver (coins of standard weight and fineness) was both the money and currency. In this system, the value of a currency (coins and notes) is fixed to and expressed in terms of, an amount of silver. Currency holders would either have the exact weight in silver or could, in theory, exchange their money for its equivalent value in silver. As one of the oldest and most commonly used metals in currency, silver was an obvious choice for the standard used by many nations. 

 

With the slide in the value of the silver metal, silver coins around the world became token currencies linked to a gold standard; they were no longer worth their value in silver but came to represent a value in gold. The silver standard is not currently being used by any country. China and Hong Kong were the last nations to use a silver standard, abandoning it in 1935. By this time, the silver standard was superseded by the gold standard as most nations had already moved to a gold standard.

Bimetal Monetary System

The bimetal standard was a monetary system based on the two precious metals, silver, and gold. The currency value was fixed to values in both silver and gold. For example, the United States abandoned the silver standard in 1861, and by 1893 had effectively moved to a gold standard. In the intervening years, the United States was on a de facto bimetal-specie standard (legally bimetallic but de facto silver, then gold); that is U.S. dollar was fixed to values in both silver and gold. The bimetal standard was superseded by the gold standard.

Gold Standard Monetary SystemThe gold standard or/and gold exchange standard is a monetary system based on the precious metal gold. Under the gold-specie standard, gold (coins of standard weight and fineness) was both money and currency. 

 

Under the gold standard, nations defined their respective domestic units of account in terms of so much gold (by weight and fineness or purity) and allowed gold and international checks (known as bills of exchange) to flow between nations unfettered. This system was therefore self-equilibrating, functioning without government intervention (after their initial definition of the domestic unit of account).

Domestic and international liquidity were satisfied in principle from new gold production. If this proved inadequate, as it did for prolonged periods, most notably from the 1870s to the mid-1890s, the increased liquidity was supplemented domestically by a rapid expansion of new forms of payment, notably banknotes and demand deposits in banks and by a prolonged decline in the price level, which raised the real value (in commodities) of a given volume of gold money. 

 

The adjustment mechanism under this system was simple, a transfer (for example, reparations or capital investment) from country A to country Braised the money stock in B and lowered it in A. As a result, prices would fall in A and rise in B, and A would, in consequence, enlarge its trade surplus (or reduce its deficit), make the real transfer in goods, and earn the gold back until monetary and payments equilibrium was restored. Any downward pressure on prices in the sending country is mediated by the banking system, which operates on fractional gold reserves. These adjustments were accomplished partly through changes in spending or absorption and partly through changes in prices, especially the prices of non-tradable.

 

The novelty of this system was the conservation of gold by removing it from circulation and concentrating it in the hands of the leading banks, even going beyond that by encouraging banks, smaller central banks, to hold short-term claims on other countries, mostly in currency. As a result, national currencies began to play a role as international means of payment. 

The gold standard in different guises continued until 1973, when the United States, under Richard Nixon, abandoned the gold standard and pure fiat currencies became the global norm.

Floating Exchange Rates Monetary System

Floating exchange rates monetary systems that rose and existed during the interwar period were not thought of as a “system” at all, but rather as an unavoidable but temporary means that monetary authorities allowed world markets (through interest rates, and expectations about relative price, productivity, and trade levels) to determine the prices of different currencies in terms of one another. Under this system, free capital flows are allowed, as is domestic discretionary monetary policy, but at the expense of the security and stability of fixed exchange rates.

The “adjustment process” worked by a market price (“the exchange rate”) clearing the market for foreign exchange, much as the price of strawberries clears the market for strawberries. If for any reason, home demand for a foreign currency rose, the exchange rate of that currency would appreciate rationing the demand to what was available at the new price.

 International liquidity in the sense of an internationally accepted means of payment was not necessary under this system since entities bought the foreign currencies they needed in the foreign exchange markets, and the banks did not need to hold international foreign currency reserves. 

 

This system was characterized by tremendous exchange rate volatility and unfettered international capital mobility, which strongly influenced the re-establishment of fixed exchange rates under the Bretton Woods system. 

Bretton Woods Monetary System

Between World War II and the early 1970s, much of the world was on a managed, fixed-Foreign Exchange regime called the Bretton Woods System (“BWS”). The Bretton Woods System adopted by the first world countries in the final stages of World War II was designed to overcome the flaws of the G.S. while maintaining the stability of fixed exchange rates. By making the dollar the free world’s reserve currency (basically substituting USD for gold), it ensured a more elastic supply of international reserves and allowed the United States to earn seigniorage to help offset the costs it incurred fighting World War II, the Korean War, and the Cold War. The U.S. government promised to convert USD into gold at a fixed rate ($35 per oz.), essentially rendering the United States the banker to more than half of the world’s economy. The other countries in the system maintained fixed exchange rates with the dollar and allowed for domestic monetary policy discretion, so the BWS had to restrict international capital flows, which it did via taxes and restrictions on international financial instrument transactions.

This period under BWS after World War II witnessed a massive shrinkage of the international financial system. This is because under the BWS if a country could no longer defend its fixed rate with the dollar, it could devalue its currency or, in other words, set a newer, weaker exchange rate. Great Britain devalued several times, as did other members of the BWS. Adjustments were only achieved by differential liberalization of trade and payments. Many countries were in a suppressed disequilibrium following World War II and maintained tight restrictions over trade and payments. These restrictions were gradually relaxed, country by country, as conditions permitted. For example, it was not until the end of 1958 that Western European countries abandon controls on current account transactions, and many maintained restrictions on outward capital movements. 

 

This BWS ultimately failed largely because the banker, being the United States, kept issuing more USD without increasing its reserve of gold. The international equivalent of a bank run ensued because major countries, led by France, exchanged their USD for gold.

Managed Floating Monetary System

In 1976, countries met to formalize a floating exchange rate system as the new monetary system; they established a managed float system of exchange rates. Under a managed float, the central bank allows market forces to determine second-to-second (day-to-day) fluctuations in exchange rates but intervenes if the currency grows too weak or too strong. In other words, it tries to keep the exchange rate range-bound, ostensibly to protect domestic economic interests (exporters, consumers) who would be hurt by rapid exchange rate movements. Those ranges or bands can vary in size from very wide to very narrow and can change levels over time. 

Central banks intervene in the foreign exchange markets by exchanging international reserves, assets denominated in foreign currencies, gold, and special drawing rights (SDRs), for domestic currency. This contrasts with a completely free-floating exchange rate system, which has no government intervention; currencies float freely against one another. The degree of float management can range from a hard peg, where a country tries to keep its currency fixed to another, so-called anchor currency, to such wide bands that intervention is rarely undertaken. Cru is distributed, exchanged, and transferred within the Cru Ecosystem.

1 Cru is equal to Resource Mobilization Inc Receivables US$ 53.352184 subject to notifications updated from time to time on this website by the treasury department of CRO. CRU is exchangeable for its equivalent value in any currency. The market exchange rates for CRU can be any amount and may be different from the vault exchange rates for CRU as updated from time to time on this website by the treasury department of CRO.

Concluding Remarks

Fiat has delivered sustained economic growth since its introduction, but it is obvious that the work of better life for all is not completed; there is room for the complement. Cru seeks to be that complement to fiat. Cru, unlike fiat, is privately owned, issued based on private money. Cru shall not have the pressures of fiat and therefore holds the potential to be better stable money for global development. The expectation is Cru shall be utilized alongside Ura, fiat, and all other forms of money for the common good. It shall have all the safeguards of fiat but with the sole purpose of being reliable money.

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