Chapter 945

Why is it a drastic draw?

Originally, gold coins were used as currency. After they came out of Ilus coinage, they were directly circulated between Star Diamond bank and consumers. Due to the characteristics of gold coins, Ilus coinage was no longer required to participate.

Dragons like gold and goblins like wealth, so that both sides can reach a consensus on cooperation in gold coins. But if gold loses its monetary attribute, the premise of cooperation between goblins and Dragons will disappear!

On the other hand, after changing into paper money, consumers must face the situation of currency damage and depreciation. In this case, they can only go to prandal central bank for exchange.

In addition, prandal central bank has obtained the high-level authority to supervise and issue money, which is equivalent to inserting a management organization between Star Diamond bank and consumers.

In this case, the Star Diamond bank can't be too casual in its savings policy. It must look at the face of prandal central bank

What's worse, all the gold coins in their vault have to be replaced with new paper money. It's not so easy to enter and exit. The doors inside are big

Will the dragon be willing to exchange the gold coins that have been collected for a piece of paper?

Gallian was in a very bad mood. He glanced at Sasha glott secretly and said, "Lord Donne, I'm afraid it's a little wrong. What if people don't want to change into paper money? Can you force them not to?"

"Of course I won't force."

Donne took a sip of tea to moisten his throat. Before Gallian could breathe a sigh of relief, he said faintly: "however, we have a exchange period. If we don't exchange beyond this period, we will cancel the monetary status of gold coins and treat them completely as ordinary metal materials. In other words, if you don't exchange them as soon as possible, the value of gold coins will depreciate in the future."

Normally, as one of the rare metals, the value of gold will not rise but fall after losing its monetary status, because it is widely used in industry.

But in prandal, this approach does not work.

Gold is soft and cannot be used to forge armor.

Gold is not a good conductor of magic. It can't compare with magic metal in the application of magic.

The rarity of gold is only among ordinary metals. Looking at the metal deposits contained in the whole prandal and even the star world, the reserves of gold are definitely not rare. There are more rare magic metals here.

There is no complex microelectronic technology here, which needs the characteristics of gold.

Therefore, the ultimate status of gold is likely to be used to make some beautiful tableware, decorations and so on.

The market value it represents will fall greatly.

Don shrugged and continued, "at the same time, it also means that if the gold coins in your vault are not exchanged or circulated, it will not affect at all. You can play as you like."

Even if the Dragon wants a large collection, the reduction of gold will not affect the currency circulating in the market.

In a word, Donne's attitude has made it very clear that he is determined to abolish the gold standard and the monetary status of gold - after all, this thing will be used as the raw material of oreha steel. If the price is still so high, the cost is very difficult to control.

Gallian took a deep breath and said in a deep voice: "Your Excellency Donne, you are too confident. The value of gold coins is well known. You can't cancel it if you want to cancel its legal tender status. The kingdom of solant, the kingdom of grace, the kingdom of ronitant, the Empire of Ryan, and even those principalities are still using gold coins. You can't force everyone to follow your wishes."

Donne looked at him meaningfully and said, "that's what I need to worry about, isn't it?"

He has been trying to promote the influence of Datang chamber of Commerce for what?

Leading technology!

Far more than the financial resources of ordinary chambers of Commerce!

Relying on the great influence of Datang chamber of Commerce and taking Datang chamber of Commerce as the core to implement the new currency, this is the only opportunity for currency reform.

Counting on the policies of the Ilus royal family? Hehe

From the moment of implementing the monetary reform policy, gold coins will only be unable to get in and out of Datang chamber of Commerce, and all currencies flowing out of Datang chamber of Commerce will be replaced by paper money. Not only that, then Datang chamber of Commerce will completely replace salaries and bonuses with paper money, and Ellington will take the lead in realizing full paper money.

At the same time, the salaries of the civil servants of the Ilus empire will also be replaced by paper money. Before long, the gold coins circulating in the whole Ilus empire will be completely recycled and melted, extracted into gold bullion and stored, waiting for the synthesis of oreha steel.

In addition, now Datang chamber of Commerce has laid out the Ryan Empire and ronitant Kingdom, and its influence is gradually expanding. The two countries will soon have the mixed circulation of paper money and gold coins. When businessmen realize that carrying paper money is more convenient and faster than gold coins, the influence of paper money will be further expanded.

At that time, even if the Star Diamond bank is unwilling to accept paper money, there is no way - unless they are willing to give up the savings market, they can only watch the gold coins in their vault be taken away bit by bit, and finally face bankruptcy.

At that time, it's a big deal that Donne will open another Datang commercial bank to provide online savings services. Isn't the market full of Star Diamond bank happy?

Donne said earnestly: "the times are progressing and the society is reforming. If you don't follow the pace of the times, you will only be eliminated."

"It's no use saying so much."

Gallian had to place his last hope on Sasha glott: "Your Excellency the Dragon King will not agree to the monetary reform plan!"

"I agree."

"You see, I said - wait!? Your Majesty the Dragon King!? what did you say? You agree!?"

The unexpected reply made Gallian completely dumbfounded.

"Yes, I said I agreed."

Sasha glott waved his hand and said, "we'll talk to Levitz about this. You don't have to say anything."

What happened to the world if Gallian was struck by lightning?

Even the Dragon loves the existence of gold coins so much that he can accept this absurd reform scheme!?

"Without further delay, let's go find leviz now."

Donne stood up, Sasha glo nodded, and then the two left directly using teleportation.

The confused Gallian didn't know how he left the Lord's house. He only knew that he was getting farther and farther away from the golden gold

"Rare guest!"

When he saw Levitz, he was riding his tricycle in the garden. When he saw Sasha glott looking at his tricycle curiously, Levitz grinned and flattered, "Your Majesty, do you want to try?"

"Forget it, it's not for me."

Sasha glott waved his hand and sat down beside him.

Leviz looked at Donne curiously: "Lord Donne, it's a busy time for Alex now. How can you remember to come to me?"

"Of course I have something to talk to you about."

Donne smiled and told Levitz about the currency reform.

As he expected, riviz panicked when he heard that Donne reorganized the Central Bank of prandal, the mint of Ilus, but he didn't speak immediately, but listened to everything.

He was relieved when he learned that the prandal central bank did not provide savings and loans, but he raised it again.

"The position of paper money in place of gold coins? This is simply, simply fantastic!"

Leviz said with a look of disbelief, "it's just a piece of paper. How can it be compared with the value of gold coins?"

Donne pondered a little and said, "Lord rivitz, if I want to buy your things, but I don't have any cash on me, then I'll write you an IOU. First take the things away, and then I'll give you the money in a few days. Can you accept this kind of transaction?"

"Of course, you certainly don't need that money -"

Donne smiled: "since the IOU can represent a certain monetary value, why can't paper money?"

Rivitz was stunned and didn't know how to answer him.

"We came to you just to communicate with you and open the paper money storage business of Star Diamond bank as soon as possible. You can exchange money directly with prandal central bank. When customers withdraw cash, they can replace gold, silver and copper coins with equivalent paper money to help us promote the circulation of paper money as soon as possible."

Seeing what rivitz wanted to say, Donne waved his hand and continued: "You can not accept this condition and continue to trade in gold coins. However, if customers deposit paper money with you, if you do not accept it, this market will inevitably give birth to another bank providing this service, and you can only watch your customers put into the arms of other banks."

"Hiss -"

Leviz took a breath of air conditioning and subconsciously looked at Sasha glott: "Your Majesty the Dragon King --"

"I have expressed my support for Donne's monetary reform plan."

Sasha glott raised his chin: "you talk, don't worry about me."

Sasha glott came here just to show his attitude. How to talk about it depends on Donne and rivitz.

"Lord Donne, the news came in such a hurry that I can't give an answer right away."

Rivitz decided to delay and consider the risks and opportunities.

"Of course, it's your power."

Donne made a "please" gesture, smiled and said: "However, I will not slow down the pace of monetary reform. I promise to complete the currency conversion in the whole Ilus empire in no more than one month. There will even be a new version of paper money here, including nanila. They may begin to face the situation that they can't save money. I thought that at that time, you will make the right choice."

Rivitz was worried: "you're forcing the palace!"

"No."

Donne took time to pull his collar and said, "I'm just a kind reminder that the pace of reform has gone out. Whether to catch up or stay in place is all in your mind."