How to link gold standard to digital currency
Publish: 2021-04-27 11:34:18
1. Digital currency is the trend, but I don't know when it will be released in China. I haven't heard of the currency you said, and it may not be issued. Otherwise, there will be no news on the Internet.
2. The gold standard is a monetary system with gold as the standard currency. Under the gold standard system, the value of each unit of money is equal to several weights of gold (i.e. the gold content of money); When different countries use the gold standard, the exchange rate between countries is determined by the mint parity, the ratio of gold content of their respective currencies. The gold standard began to prevail in the mid-19th century. In history, there were three forms of gold standard system: gold coin standard system, gold bullion standard system and gold exchange standard system. Among them, gold standard is the most typical form. In a narrow sense, gold standard refers to this kind of monetary system< The two linked system is also known as the Bretton Woods system.
the Enlightenment of the Bretton Woods system came at the end of the Second World War. In July 1944, more than 300 representatives from 44 countries held the "UN International Monetary and financial conference" in Bretton Woods, New Hampshire, USA, and adopted the "final resolution of the UN monetary and financial agreement" as well as the "International Monetary Fund Agreement" and the "international bank for reconstruction and development agreement", two appendixes, collectively known as the "Bretton Woods Agreement", Thus, the Bretton Woods system centered on US dollar was established
the core contents of the Bretton Woods system include: the establishment of the International Monetary Fund to negotiate international monetary affairs and provide financing support for the short-term balance of payments deficit of member countries; The US dollar is directly linked to gold, and the currencies of various countries are linked to the US dollar (i.e. "double pegging") to implement an adjustable fixed exchange rate system; Abolishing foreign exchange control on current account transactions, etc. Thus, the Bretton Woods system established two major international financial institutions - the International Monetary Fund and the international bank for reconstruction and development (IBRD). The International Monetary Fund (IMF) is responsible for providing short-term funds to its members to ensure the stability of the international monetary system; The world bank provides long-term credit to promote the recovery and development of the world economy. These two institutions are still in operation.
the Enlightenment of the Bretton Woods system came at the end of the Second World War. In July 1944, more than 300 representatives from 44 countries held the "UN International Monetary and financial conference" in Bretton Woods, New Hampshire, USA, and adopted the "final resolution of the UN monetary and financial agreement" as well as the "International Monetary Fund Agreement" and the "international bank for reconstruction and development agreement", two appendixes, collectively known as the "Bretton Woods Agreement", Thus, the Bretton Woods system centered on US dollar was established
the core contents of the Bretton Woods system include: the establishment of the International Monetary Fund to negotiate international monetary affairs and provide financing support for the short-term balance of payments deficit of member countries; The US dollar is directly linked to gold, and the currencies of various countries are linked to the US dollar (i.e. "double pegging") to implement an adjustable fixed exchange rate system; Abolishing foreign exchange control on current account transactions, etc. Thus, the Bretton Woods system established two major international financial institutions - the International Monetary Fund and the international bank for reconstruction and development (IBRD). The International Monetary Fund (IMF) is responsible for providing short-term funds to its members to ensure the stability of the international monetary system; The world bank provides long-term credit to promote the recovery and development of the world economy. These two institutions are still in operation.
3. From 1880 to 1913, the gold standard occupied the dominant position in its purest form, and most countries' currencies were linked to gold, thus establishing the exchange rate system based on the gold standard. Because gold has the excellent characteristics that other currencies do not have: uniform texture, not easy to wear, small quantity and high value, so gold has become the most ideal world currency. Under the gold standard system, countries cast their own gold coins. When people buy goods abroad, they only need to pay the gold currency equal to the value of the goods. At this time, there is a fixed exchange rate between currencies, which is determined by the gold content of each currency
with the development of economy, it is found that it is not convenient to carry gold as a means of payment, so governments began to use credit currency graally, but still use gold coin as the base currency, resulting in the decrease of gold reserves in most countries. As a result, the gold standard system has entered a new stage of development, namely the gold standard system and the gold exchange standard system. However, people find that the two systems are equally unstable
after the outbreak of the economic crisis in 1929-1933, both the gold standard and the gold exchange standard could not be maintained, so the paper currency standard which could not be exchanged for gold appeared. On this basis, the major developed countries linked some countries and foreign colonies closely related to trade and finance together to form currency groups and establish their internal exchange rate system. The main currency groups are the pound group, the dollar group and the franc group, which makes the world's foreign exchange activities mainly focus on the pound, the franc and the dollar, and makes the foreign exchange transactions develop in favor of these big countries
however, this system did not last long. The exclusiveness among various currency groups and the prevalence of trade protectionism led to the chaos of the international financial order, which made the paper currency standard withdraw from the international arena soon after, and the Bretton Woods system and the fixed exchange rate system took its place.
with the development of economy, it is found that it is not convenient to carry gold as a means of payment, so governments began to use credit currency graally, but still use gold coin as the base currency, resulting in the decrease of gold reserves in most countries. As a result, the gold standard system has entered a new stage of development, namely the gold standard system and the gold exchange standard system. However, people find that the two systems are equally unstable
after the outbreak of the economic crisis in 1929-1933, both the gold standard and the gold exchange standard could not be maintained, so the paper currency standard which could not be exchanged for gold appeared. On this basis, the major developed countries linked some countries and foreign colonies closely related to trade and finance together to form currency groups and establish their internal exchange rate system. The main currency groups are the pound group, the dollar group and the franc group, which makes the world's foreign exchange activities mainly focus on the pound, the franc and the dollar, and makes the foreign exchange transactions develop in favor of these big countries
however, this system did not last long. The exclusiveness among various currency groups and the prevalence of trade protectionism led to the chaos of the international financial order, which made the paper currency standard withdraw from the international arena soon after, and the Bretton Woods system and the fixed exchange rate system took its place.
4. Establish the world monetary organization, implement the gold standard and issue world public currency. Central banks of all countries can choose their own monetary system: comprehensive gold standard, partial gold standard, or keep the existing mode not linked to gold
5. In the history of money, silver acted as the base currency earlier than gold. For example, in 1717, the British legislation stipulated that one Gini gold coin was equivalent to 21 shilling silver coins, that is, the price ratio between gold and silver was 15.2:1. But gold is far better than silver as a monetary commodity. With the development of economy in western countries, the silver standard system first transited to the gold and silver compound system, and then replaced by the gold standard system after the 1920s. At the end of the 19th century, with the improvement of the labor proctivity of silver mining and casting instry, the value of silver decreased continuously, and the price ratio between gold and silver fluctuated greatly, showing a long-term downward trend. The fluctuation of silver price, together with the low weight price, is not suitable for huge payment, which affects the economic development. With the appearance of the phenomenon of bad money driving out good money when the world silver price plummeted in 1870s, capitalist countries began to implement the lame standard system. Under this system, although gold coins and silver coins have the same status in law, silver coins are actually prohibited from being cast freely. The United States, France, Belgium, Switzerland and Italy have all implemented this system. It can be said that she is the transition from gold and silver double standard system to gold standard system. In addition to China, other countries have given up the silver standard. As you said, assuming that Chinese businessmen exchanged all the silver they earned for gold at that time, wouldn't the gold of the British government and banks be sucked up? Isn't Britain's gold standard going bankrupt? At that time, silver coin was just like the legal tender of a country. Only banks could cast it, so there was no such problem. Equal standard system has gone through three stages: silver standard system, gold and silver system and gold standard system. There's a lot of knowledge in this area. I guess I can understand it in a day or two. Hope to adopt ~ thank you
6. Gold standard in the early days, various countries used gold for trading. Gold was the only standard to measure a country's wealth. Later, when paper money was printed, the value of each country's currency depended on the amount of gold. That is to say, you have a ton of gold. No matter how many money you print, its purchasing power is only a ton of gold, The gold standard means that gold is anchored as the standard for calculating value. Of course, after the Brinton forest system, the era of gold standard passed. The US dollar was pegged to gold, and the US dollar graally became the world currency.
7. The gold standard started very early. In the early days, metal was used as currency. Later, the Bretton Woods system linked gold to the US dollar, which largely laid the foundation for today's gold standard. On the other hand, as a basic currency, gold's value can be said to be fixed, and it should be more stable in the world compared with other paper money. In any case, paper money is related to the fluctuation of national economic level, and the increase is relatively large
8.
Under the gold standard system, the gold content of currency is the basis of determining the exchange rate, and the gold export and import point are the boundaries of exchange rate fluctuation, so the fluctuation range of exchange rate is small, which is a typical fixed exchange rate
because the legal gold content of each country's currency is generally not easy to change, the fluctuation range of exchange rate based on the gold content of currency is very small, and the government intervention makes it relatively stable
In the countries with gold standard system, the exchange rate is determined by the seigniorage parity; Because gold coins can be cast freely, bank notes can be exchanged freely, gold coins can be exported and imported freely, the exchange rate is limited by the gold delivery point, and the fluctuation range is limited in a very narrow range. It can be said that the fixed exchange rate system under the gold standard system is a typical fixed exchange rate system The value of money is defined by gold, each monetary unit has a legal gold content, and the currencies of various countries have a certain price ratio according to the weight of gold2. Gold coins can be cast freely, and anyone can hand over gold nuggets to the National Mint according to the gold content of the standard currency
Gold coin is a kind of money with unlimited legal compensation and has the right of unlimited means of payment The monetary reserve of each country is gold, and gold is also used in international settlement, so gold can be freely exported and imported As gold can be transferred freely among countries, it ensures the relative stability of foreign exchange market and the unification of international financial market9. Gold is not used to measure the price of gold in the US dollar or RMB, but in other currencies.
if gold goes up again, it means that other currencies will fall again.
if gold goes down again, it means that other currencies are appreciating.
I understand that when the US dollar goes down, gold is rising, while when the gold goes down, the US dollar is on the way up, Gold is negatively correlated with the US dollar for most of the year
there are three main reasons for this: first, the US dollar is the pillar of the current international monetary system. Both the US dollar and gold are the most important reserve assets. The strength and stability of the US dollar weaken the status of gold as a reserve asset and a hedge function. Second, the GDP of the United States still accounts for more than 1 / 4 of the world's GDP, and the total amount of foreign trade is the largest in the world. The world economy is deeply affected by it, and the price of gold is obviously in inverse proportion to the quality of the world economy. Third, the world gold market is generally priced in US dollars, so the depreciation of US dollars is bound to lead to the rise of gold prices. For example, at the end of the 20th century, when the price of gold was at a low ebb, people poured out gold one after another, which was closely related to the 100 month continuous growth of the U.S. economy and the strength of the U.S. dollar<
the historical relationship between gold and US dollar
the Bretton Woods system established after World War II stipulates that US dollar is the most important international reserve currency. The U.S. dollar is directly linked to gold, and the currencies of various countries are linked to the U.S. dollar, which can be converted into gold at the official price of 35 U.S. dollars an ounce. This is commonly known as the "gold standard system", that is to say, the currencies of all countries are based on gold. However, e to the revival of Europe and Japan, all countries used a lot of US dollars to arbitrage gold, which led to the collapse of the system. Finally, the IMF abandoned this system
if gold goes up again, it means that other currencies will fall again.
if gold goes down again, it means that other currencies are appreciating.
I understand that when the US dollar goes down, gold is rising, while when the gold goes down, the US dollar is on the way up, Gold is negatively correlated with the US dollar for most of the year
there are three main reasons for this: first, the US dollar is the pillar of the current international monetary system. Both the US dollar and gold are the most important reserve assets. The strength and stability of the US dollar weaken the status of gold as a reserve asset and a hedge function. Second, the GDP of the United States still accounts for more than 1 / 4 of the world's GDP, and the total amount of foreign trade is the largest in the world. The world economy is deeply affected by it, and the price of gold is obviously in inverse proportion to the quality of the world economy. Third, the world gold market is generally priced in US dollars, so the depreciation of US dollars is bound to lead to the rise of gold prices. For example, at the end of the 20th century, when the price of gold was at a low ebb, people poured out gold one after another, which was closely related to the 100 month continuous growth of the U.S. economy and the strength of the U.S. dollar<
the historical relationship between gold and US dollar
the Bretton Woods system established after World War II stipulates that US dollar is the most important international reserve currency. The U.S. dollar is directly linked to gold, and the currencies of various countries are linked to the U.S. dollar, which can be converted into gold at the official price of 35 U.S. dollars an ounce. This is commonly known as the "gold standard system", that is to say, the currencies of all countries are based on gold. However, e to the revival of Europe and Japan, all countries used a lot of US dollars to arbitrage gold, which led to the collapse of the system. Finally, the IMF abandoned this system
10. It doesn't matter. It's just that economic growth with constant money supply will lead to deflation. The essence of economic growth is to proce more procts, not more money. For example, if there were 100 units of gold currency in the original society and 100 units of single proct in the economy, the value of each unit of proct was 1 unit of currency; After the economic growth, the value of social procts reaches 110 units, but gold is still 100 units, so the value of social procts per unit is 0.909 unit currency. Although money supply has not changed, social procts have increased
in fact, such things have happened in history. For example, copper shortage occurred in many times in China, which led to the decline of prices. However, people can look for alternatives. The issuance of paper money or bills of exchange, such as flytickets, jiaozi, treasure notes and official tickets, and the use of iron money in some areas are to make up for the shortage of copper supply
of course, China's situation is special. For a long time, it has been copper standard system. In the late Ming Dynasty, the transition from copper standard to silver copper double standard system, especially after Longwan, the inflow of silver dollars from America, and the increase of money supply laid the foundation of precious metal standard.
in fact, such things have happened in history. For example, copper shortage occurred in many times in China, which led to the decline of prices. However, people can look for alternatives. The issuance of paper money or bills of exchange, such as flytickets, jiaozi, treasure notes and official tickets, and the use of iron money in some areas are to make up for the shortage of copper supply
of course, China's situation is special. For a long time, it has been copper standard system. In the late Ming Dynasty, the transition from copper standard to silver copper double standard system, especially after Longwan, the inflow of silver dollars from America, and the increase of money supply laid the foundation of precious metal standard.
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