Money in the Credit-to-Credit (C2C) Monetary System
In the Credit-to-Credit (C2C) Monetary System, money is designed to reflect real economic value by being directly tied to tangible assets. This system represents a departure from traditional fiat currencies, where money is often created based on government debt and lacks backing by actual assets. In the C2C system, money issuance is anchored in receivables, gold, and other economic assets, ensuring its value is stable, resistant to inflation, and aligned with real-world economic activity.
At the heart of this system are Central Ura and Central Cru, two forms of asset-backed money that serve as stable and reliable alternatives to debt-based fiat currencies. In this article, we’ll explore the concept of money within the C2C Monetary System, how it functions, and why it offers a more sustainable financial framework for the global economy.
What is Money in the C2C System?
In the traditional financial system, money can be issued by central banks without direct backing by tangible assets. This system, known as fiat currency, has contributed to inflation, currency devaluation, and financial instability in many nations. In contrast, the C2C Monetary System ensures that all money issued is backed by real assets, such as receivables, gold, and other valuable commodities, preventing over-issuance and securing long-term value.
In the C2C system, money is not an abstract concept or a product of market confidence alone. It is a representation of real economic value, backed by assets that exist in the economy. This means that money in the C2C system is issued only when there is a corresponding asset or obligation that guarantees its value.
The Role of Central Cru and Central Ura as Money
Central Cru and Central Ura are two forms of money issued within the C2C Monetary System. Both are fully backed by tangible assets, ensuring that they maintain their value over time and are protected from inflation.
- Central Cru: Issued by Central CM Series LLC, Central Cru is backed by receivables assigned by RMI I Series LLC and secondary reserves managed by Central Ura Reserve Limited (CUR). Central Cru acts as a reliable store of value and medium of exchange, ensuring that every unit is tied to real economic activity and assets.
- Central Ura: Serving as another form of asset-backed money, Central Ura operates within the Central Ura Monetary System, which is also built on the principles of the C2C framework. Like Central Cru, it is backed by real assets, ensuring long-term stability.
Backing Money with Real Assets
One of the fundamental principles of the C2C Monetary System is that money must be backed by tangible assets. In this system, money is only issued when there is a corresponding real-world asset, such as receivables, gold, or other financial assets, that supports its value.
Primary and Secondary Reserves:
- Primary Reserves: The main form of backing for money in the C2C system is receivables, which are financial obligations owed by debtors. These receivables serve as collateral for the money issued, ensuring that its value is tied to real economic obligations.
- Secondary Reserves: In addition to receivables, gold and other precious metals serve as secondary reserves, further stabilizing the value of money in the system. By using a mix of financial assets and tangible commodities, the C2C system ensures that its money supply is both stable and reliable.
Key Benefits of Asset-Backed Money:
- Inflation Resistance: Unlike fiat currencies, which can be printed without backing, money in the C2C system is fully collateralized by assets, preventing over-issuance and protecting against inflation.
- Stability and Value Preservation: Because C2C money is backed by real assets, it maintains its value over time, providing a secure and predictable store of wealth.
- Transparency: The use of tangible assets to back money ensures that the C2C system operates with full transparency, giving individuals and institutions confidence in the system.
How Money is Issued in the C2C System
The process of issuing money in the Credit-to-Credit (C2C) Monetary System is tightly regulated to ensure that all money in circulation is fully backed by assets. Here’s how it works:
- Asset Assessment:
Money is issued based on the value of real economic assets, such as receivables, gold, and other commodities. These assets are carefully assessed to ensure their value and validity. - Collateralization:
Once the assets are assessed, they are used as collateral to back the issuance of money. For example, a government, business, or financial institution may assign receivables to back the issuance of Central Cru. - Issuance of Money:
After the assets are collateralized, money is issued in proportion to the value of the assets backing it. This ensures that the money supply remains aligned with the actual value of goods and services in the economy. - Ongoing Monitoring:
The assets backing the money are continuously monitored to ensure that their value remains sufficient to back the money in circulation. If the value of the underlying assets changes, the money supply is adjusted accordingly to maintain equilibrium.
The Return of Currency as a Conveyor of Money
Before the 1971 decoupling of the U.S. dollar from the Gold Standard, currency and money were considered synonymous. Every unit of currency was tied to a specific amount of gold, ensuring that the currency served as a conveyor of money—a tool that represented real economic value.
In the decades following the decoupling, currencies became fiat-based, losing their direct connection to real-world assets. This shift led to the widespread over-issuance of money and the accompanying risks of inflation, devaluation, and financial instability.
In the C2C system, currency once again serves as a conveyor of money, with every unit representing real economic assets. The value of money is directly tied to tangible assets, ensuring that it reflects real wealth and preventing the risks associated with fiat currencies.