Existing Receivables in the Credit-to-Credit (C2C) Monetary System
In the Credit-to-Credit (C2C) Monetary System, existing receivables play a foundational role in ensuring that every unit of money issued is backed by real, tangible assets. Unlike traditional fiat currencies, which are often issued without direct asset backing, the C2C system leverages existing receivables to create a stable and reliable form of money, such as Central Cru. This approach provides transparency, trust, and protection against inflation by tying the money supply directly to verified economic value.
This article explores the significance of existing receivables in the C2C Monetary System, how they are utilized for money issuance, and the benefits they provide for financial stability.
What Are Existing Receivables?
Existing receivables represent confirmed financial obligations where payment for goods or services has been agreed upon but not yet received. In the C2C system, these receivables are critical because they act as the primary assets that back the issuance of money. Each receivable represents a real claim on future cash flows, which ensures that every unit of currency is grounded in actual economic transactions.
Receivables can come from various sources, such as goods or services delivered on credit, contractual agreements, or loans, and they are recorded as assets on a balance sheet.
The Role of Existing Receivables in Money Issuance
In the C2C system, money issuance is a process of asset-backed currency creation. Existing receivables are evaluated, valued, and used as collateral for the issuance of currency, ensuring that each unit of money is supported by real economic value. This prevents the risks associated with over-issuance and inflation that often affect fiat currencies.
Key Steps in Issuing Money Based on Existing Receivables:
- Valuation of Receivables:
The first step involves a thorough assessment of the receivables to determine their value. This includes evaluating the outstanding amounts and the creditworthiness of the debtors. - Legal Assignment of Receivables:
Once valued, the receivables are legally assigned to a monetary authority, such as Central CM Series LLC, which uses them as collateral for issuing money. This ensures that the receivables act as tangible backing for every unit of currency in circulation. - Issuance of Money:
Based on the value of the receivables, Central Cru is issued. The amount of money issued is directly tied to the receivables’ value, creating a one-to-one relationship between currency and real assets. - Ongoing Monitoring:
The performance of the receivables is continuously monitored to ensure that payments are made on time. This process helps maintain the value of the currency and prevents devaluation.
Types of Receivables Used in the C2C Monetary System
Receivables used in the C2C system can vary depending on their source and nature. Here are the primary types of receivables that can serve as collateral for money issuance:
- Accounts Receivable:
These are short-term claims on payments owed for goods or services delivered on credit. Accounts receivable are common in business operations and are used to back the issuance of Central Cru in the C2C system. - Notes Receivable:
These are formal promises of future payment, often including interest. Notes receivable are typically used in longer-term financial agreements and provide additional security when backing currency. - Contractual Receivables:
Arising from contracts, these receivables represent legally binding obligations to pay a specific sum. They are common in industries such as leasing, real estate, and large-scale service agreements. - Loan Repayments:
Repayments from loans can also serve as receivables in the C2C system. These are used as collateral to issue money, ensuring that loan obligations contribute to the currency supply.
Benefits of Using Existing Receivables in the C2C System
The use of existing receivables to back currency in the C2C system offers several key advantages that differentiate it from traditional fiat currency systems:
- Stability and Transparency:
By using existing receivables, the C2C system ensures that the currency supply is tied to real economic activity. This creates a more transparent and stable monetary system, as every unit of money has a clear, verifiable asset backing it. - Protection Against Inflation:
Fiat currencies are often subject to inflation due to over-issuance. In the C2C system, money can only be issued when backed by existing receivables, preventing the creation of money without real value. This helps preserve purchasing power over time. - Enhanced Trust:
Because the C2C system is asset-backed, individuals, businesses, and governments can trust that the money they hold represents real economic value. This trust promotes the use of Central Cru as a reliable store of value and medium of exchange. - Improved Liquidity:
For businesses, using existing receivables to back money issuance provides improved liquidity. Companies can convert their receivables into money, enhancing their cash flow without taking on new debt.
Historical Context of Using Receivables in Money Issuance
Receivables have been used as collateral in various forms throughout history, serving as a basis for credit and financing systems. The C2C system builds on this historical precedent by formalizing the use of receivables in currency issuance, offering a more stable and asset-backed approach to money creation.
In ancient civilizations, receivables were used in trade agreements, while in medieval Europe, bills of exchange and promissory notes facilitated long-distance trade. In the modern era, receivables are securitized or used as collateral for loans. The C2C system takes this a step further by using receivables as the foundation for issuing stable, asset-backed money.