Imagine the world

In 2047, the No. 15 year of the founding of the Huanxiang Republic, President Wang Fengshou's second term will be nearly halfway through.On this day, Tang Senzhi, director of the State Planning Commission and Minister of Finance, received an urgent call.

The call was from Hai Lanzhu, President of Huanxiang Industrial Bank, but it was not an office number but a personal number.Hai Lanzhu's tone was a little hasty: "Tang Caishen, finally someone came to our bank to run on us!"

A bank run is a shocking event, but Tang Senzhi opened his mouth and said, "President Hai, how many times have I reminded you that you must call me Director Tang at work!"

Hai Lanzhu: "Isn't this your personal phone number! Don't worry about it, someone really came to run on them. They have a lot of digital coins issued by us in their accounts, and they came to exchange them for pure gold physical coins."

Tang Senzhi: "Professional issues need to be rigorous, how much is it?"

Hai Lanzhu: "With 1000 million pieces, the net weight of gold is two hundred tons! If they want to transport it away, they have to rent at least three large transport planes."

Any bank encountering a run on this scale would be an existential crisis, but although Hai Lanzhu's tone was a little hasty, there was no anxiety or panic, but excitement and surprise.

Tang Senzhi's words were even more abnormal: "After waiting for so long, I finally got a big one! I will notify Director Hua now that they are here."

Hai Lanzhu: "There's no need to inform Director Hua, he's already in the lobby of the head office's sales department."

Tang Senzhi: "Oh, what is Director Hua doing?"

Hai Lanzhu: "Wearing security uniforms to maintain order... The mayor of Los Angeles is also here, and is working as an inspector in radiation protection suits."

Tang Senzhi: "Then follow the rules. I'll take a look at the excitement when I'm off work."

Hai Lanzhu: "Director Hua said that we must pay attention to the order and not allow close-up spectators."

Tang Senzhi: "I passed by the business department of your head office, can you take a look inside the head office?"

Hai Lanzhu: "We haven't decided yet whether we will work overtime at night, we have to make an agreement."

Tang Senzhi: "You guys will definitely be asked to work overtime. A consortium that can collect 1000 million Huanxiang coins will not be so stingy."

How could someone go to Huanxiang Industrial Bank to run on it?And Tang Senzhi and Hai Lanzhu are so excited?Things have to start five years ago.

Five years ago, Yun Zhongxian went to the Zheyue stall to set up a stall, and saw that many people used Huanxiang coins for transactions, so she also decided to accept Huanxiang coins.Zhu Meng didn't bring Huanxiang coins, and took out his mobile phone to pay online, which was converted into Dongguo coins according to the market price of gold coins at that time.

Hua Zhenxing saw this scene, and pondered a question after returning home.

Most of the currencies in the world have been very unstable in recent years. After the collapse of the rice dollar, international transactions are mainly bridged through multilateral swap currency pools.

To a large extent, Dongguo currency has the status of international currency, and it is also circulated in Huanxiangguo.

However, the main commodities exported by Huanxiang Country, such as Chunrong Dan and oil fruit tree industry services, are faced with countries all over the world.Sometimes in international transactions, we often face complex currency conversion and exchange rate fluctuations.

Therefore, it is not without reason that monks from all over the world use Huanxiang coins in addition to bartering at the moon stalls.

However, the use of Huanxiang coins also has disadvantages, firstly, the circulation is not enough, and secondly, it is inconvenient to carry.

So I don't know if it's a brain twitch or other reasons, Huazhenxing asked Huanxiang Industrial Bank to issue the digital Huanxiang currency in the name of Feng Zibin.

Later, the digital currency gradually replaced the physical gold coin, and it was called Huanxiang Coin internationally.

It should be emphasized that Huanxiang Coin is not a legal currency issued by Huanxiang Country, but a digital certificate issued by Huanxiang Industrial Bank, and the unit is coins.

It can be regarded as a kind of digital and standardized paper gold. If you have a digital Huanxiang coin in your account, you can go to Huanxiang Industrial Bank to exchange it for a physical gold coin.

In this way, everyone's transactions are very convenient. There is no need to carry heavy gold coins in the pockets every time you visit the Zhanyue stall, as long as you bring your mobile phone.

Yunzhongxian may not be used to it, but it is much more convenient for most other people.

And the digital Huanxiang coin has another advantage, it can be divided into small denominations, such as 0.001 pieces, which is much more convenient than physical gold coins.

Otherwise, the face value of buying ordinary things such as wontons, pot stickers, and kidney cakes with one Huanxiang coin is too high.

As for the exchange of physical gold coins, only the whole coin can be exchanged.No matter who it is, as long as the balance in the digital account exceeds one Huanxiang Coin, they can exchange it at any Huanxiang Industrial Bank outlet.

As long as it is within the working hours of the bank, it can be exchanged at any time if it is less than [-] pieces; if it is more than [-] pieces, it needs to be reserved one day in advance;

At first, the digital Huanxiang Coin was only used in the transactions of the moon-covering stalls. Later, Huanxiang Industry issued a policy: the factory supply of Chunrong Pill is denominated in Huanxiang Coin, and countries around the world can use Huanxiang Coin when purchasing Chunrong Pill.

What does it mean?Not only can you use Huanxiang Coin to buy Chun Rong Dan, but also gives Chun Rong Dan a standard pricing reference when the value of various currencies in the world is unstable.

In this way, the digital Huanxiang currency not only anchors gold, but also anchors Chunrong Dan.With such an anchor, people are willing to accept Huanxiang Coin even if it cannot be exchanged for gold.

This policy started to be implemented on January 2044, 1. The ex-factory price of Chunrong Dan was 1 Huanxiang Coins per box, which will be adjusted every year according to regulations.

If Chun Rongdan adjusts the pricing, it is actually equivalent to adjusting the pricing of gold.Thereafter, in 2045, 2046, and 2047, the price of "two hundred pieces per box" remained stable.

Huanxiang Industry does not force all countries in the world to use Huanxiang Coin to buy Chunrong Dan. It also accepts international currencies such as Dongguk Dollar and Xinluo Yuan. However, since the policy was released, the pricing method has been changed to Huanxiang Coin.

For example, this year's Chunrong Pill is still priced at [-] Huanxiang Coins per box, so when countries buy with other international currencies, they have to calculate the amount according to the conversion ratio between the currency and Huanxiang Coins.

This invisibly makes Chunrong Dan possess the characteristics of a "general equivalent" in the international market.

In the five years since the digital Huanxiang coin was launched, a total of 500 million coins have been issued, which is equivalent to [-] tons of gold.Huan Xiang Industrial uses it to purchase various materials and services, and then sells Chun Rong Dan for recycling.

This may seem like a lot, but it is actually far from enough for Chun Rongdan's annual transaction volume.For example, the supply of Chunrong Pill in 2047 is 40 boxes, and the total sales are 8000 million pieces in fantasy coins.

Fantasy currency mainly plays the role of pricing standard and transaction supplement.

But on the other hand, it has a lot of circulation. It is not a currency but it is better than a currency. It is equivalent to the M0 injected into the market in this way by a small country like Huanxiang Country, and M0 has a circulation velocity and a currency multiplier.

Looking at it this way, the digital Huanxiang currency is actually very similar to the rice dollar before 1971, because it can be exchanged for gold.

Saying that it is not a currency has obvious characteristics, because its essence is a delivery certificate.

It is not a bond either. Huanxiang Industrial Bank does not pay interest, but only keeps these gold coins for the holders, and does not charge storage fees at the same time.

But this does not prevent the digital currency from circulating around the world, and people use it as a hard currency.Major financial institutions have played various tricks and developed many financial derivatives.

Because of these external "financial innovations", many large holders of Huanxiang Coin will not go to Huanxiang Industrial Bank to exchange it, but treat it as a financial tool and currency asset, and use it for other purposes.

Of course, there are sporadic small-amount exchanges. Many people go to Huanxiang Country to travel, shop, and study, and they will also go to the Huanxiang Industrial Bank branch to exchange some physical gold coins and take them back as a souvenir.

Huanxiang Country also made timely policy adjustments, stipulating that no customs duties will be charged for carrying Huanxiang coins out of the country, and at the same time impose heavy penalties on counterfeiting physical Huanxiang coins.

The above is the background of the digital Huanxiang coin in the past five years.

As a financial tool, Huanxiang Coin is ultimately supported by credit.If someone holds a large amount of Huanxiang coins and asks to exchange them for physical gold coins, but Huanxiang Industrial Bank cannot provide them, the credit system is at risk of collapse.

But in the eyes of many people, it is almost impossible for this kind of thing to happen, because the credit of Huanxiangbi is not only supported by gold, but also Chunrong Pill!
But as long as the premise of rigid payment exists, someone will always see this structural risk, and there is room for arbitrage if there is structural risk.

If someone hoards enough Huanxiang Coins to run on Huanxiang Industrial Bank, what chain reaction will there be?
If Huanxiang Industrial Bank fails to pay, it will constitute a breach of contract, and even lead to bankruptcy in theory.

To avoid this outcome, banks need to negotiate with holders.There can be several solutions, such as exchanging equity for debt. In extreme cases, the possibility of the bank being acquired is not ruled out!

Huanxiang Industrial Bank may have financial strength, but the promise it gave was to rigidly exchange pure gold physical coins. The result is that it must take out so many pure gold physical coins, otherwise it will be a breach of contract.

The bank still has another trick, which is to urgently purchase gold and cast it into gold coins for delivery, but this will cause price fluctuations in the international gold market.Runners can also make huge profits by setting up their positions in advance.

Huanxiang Industrial Bank can also ask Huanxiang Industrial Group for help, and Huanxiang Industrial Group will come forward to negotiate and express its willingness to pay with Chunrong Pill instead of physical gold coins.

Then the runners can take the opportunity to negotiate terms, not only can buy beyond the quota limit, but also buy Chunrongdan in large quantities at a lower price.

This will inevitably lead to a decrease in the supply of Chunrong Dan from other international channels and an increase in the price, and those who get a large amount of spot stock will be able to make huge profits.

It should be noted that the price of Chunrongdan in the terminal market in many countries far exceeds its ex-factory price.

But if you want to run Huanxiang Industrial Bank, you can't make small troubles. You need to collect enough Huanxiang coins at one time, and give a fatal blow by surprise!
The relevant planning of the international financial capital started several years ago, and the earliest behind-the-scenes planners actually included Rothschild!

At the beginning of 2044, Rothschild had a secret meeting with Hua Zhenxing.

The background at that time was that Huanxiang Industry had just announced that it could use Huanxiang Coin to pay for Chunrongdan’s goods, and at the same time, the circulation of digital Huanxiang Coin suddenly increased from the original 100 million to 1000 million.

Rothschild came to remind Huazhenhang that there is a huge risk of rigid payment.

Huazhenxing explained that now Huanxiang Coin can be used to pay for Chunrong Dan, which in fact greatly reduces the risk of the holder, and even reduces the exchange risk to zero.

Huazhenxing's understanding of exchange risk is different from that of Rothschild.Huazhen Bank is not worried about Huanxiang Industrial Bank, but worried about Huanxiang Coin holders.

As a kind of digital currency, Huanxiang currency is circulated all over the world, but the outlets that can be exchanged for pure gold physical currency are only in Huanxiang country.

Not everyone in the world is able to travel thousands of miles to Huanxiang Country to exchange.

Some people may be inconvenient to enter and exit, and some people only hold a few Huanxiang coins, and the cost of running to exchange is too high.

If Huanxiang Coin can be used to pay for Chunrong Dan, and the scale of issuance is expanded, a circulation market will naturally be formed, and holders can easily trade with other currencies such as their own currency.

This matter doesn't even need to be promoted by Huan Xiangguo, because someone will do it, such as Rothschild.

Rothschild laughed immediately, but he reminded Huazhenxing that doing so seems to guarantee the credit of Huanxiang Coin and greatly reduce the risk of the holder, but it will lead to greater risks.

Chunrong Dan is a controlled material. Although the annual output at that time had increased to about 33 boxes, the supply was still in short supply.Huanxiang Industrial supplies distributors in various countries in the form of quota ratio.

If someone hoards a large amount of Huanxiang coins and runs at the door, not only can Huanxiang Industrial Bank be forced to default, but even if Huanxiang Industrial is under pressure to pay with Chunrongdan, it will also destroy Chunrongdan’s supply quota system.

This will cause some countries to fail to obtain the originally agreed quotas, and cause Huanxiang Industry to default on the distributors in the country. This consequence is also very serious.

Hua Zhenxing asked Rothschild what suggestion he had?
Rothschild suggested that simply take this opportunity to announce the decoupling of the digital Huanxiang currency from the physical gold currency, and simply use Chunrongdan to guarantee its credit, which is equivalent to the Chunrongdan payment token.

There is no risk of redemption of payment tokens, because Chunrong Dan’s annual shipments are limited, and no one can buy as much as they want. Under the existing distribution system, countries can only purchase according to quotas.

In this way, Huanxiang Industrial Bank can also issue larger Huanxiang coins.

Huanxiang Coin can become a kind of international hard currency. The cost is only a string of virtual digital account numbers, but it can purchase various materials and services in the international market.

There are many Huanxiang coins, which will not need to be recycled through the sale of Chunrongdan. They will be circulated and precipitated in the field of international investment and international market transactions.

Rothschild also helped Huazhenhang to formulate a plan for the circulation to reach 5000 million in the short term and [-] million in the medium term.If Hua Zhenxing is interested, Rothschild is willing to cooperate with him.

How to cooperate?Huanxiang Industrial Bank is responsible for the issuance, Rothschild can act as an investment bank agent, and contact a group of international investment banks to set up a special currency exchange...

Hua Zhenxing rejected the cooperation proposal, he said: "Dr. Luo, you should know me well, I hate all methods of harvesting wealth out of thin air.

I don't reject wealth or capital, but I care about how wealth is obtained, who owns capital and how.

From the Jili Kingdom to the Huanxiang Kingdom, I have been trying my best to let people break free from the cage. How could I lure the world into the cage I created with my own hands?

My original intention of issuing digital Huanxiang coins is very simple. At first, it was to facilitate the transactions in the moon stall market. Later, it was to provide Chun Rongdan with a relatively stable pricing reference, nothing more. "

Rothschild stared at him for a few seconds, and then smiled wryly: "Whether you like it or not, as long as the digital Huanxiang currency has the risk of gold redemption, and Chunrongdan is used as a credit guarantee, there is a huge risk. Arbitrage operations are possible.

As long as it is profitable, there will always be people following it.It's like a sea. There are many sharks, big and small, in the sea. If there is a trace of blood, they will swarm. "

Hua Zhenxing nodded and said, "Thank you for your reminder!"

Rothschild smiled bitterly again: "With our relationship, all I can do is to remind you." Then he sighed again, "You rejected my proposal, even if I don't do it, some people will seize this opportunity of."

Hua Zhenxing: "Doctor Luo, you came here to remind me because of your friendship with me. But what about another person, if the opponent is not me but someone else, what will happen to you?"

Dr. Luo: "I'm afraid I can't help but do it."

Hua Zhenxing lowered his eyes and said: "A senior once told me that it is very dangerous for a child to walk in the busy market with gold. For him, try to avoid such behavior.

But on the other hand, this is no reason for people to snatch the gold.It is wrong to snatch a child's lollipop, and it is an even greater crime to snatch gold.

Children hold gold and travel in the busy city without worry.In the eyes of many people, this may be just an ideal world, but people must have ideals, what do you think? "

Before Rothschild could answer, he immediately asked again: "Actually, before you came to me, did someone already approach you, and this is what they discussed. They want to recruit you into the group, right?"

Rothschild smiled wryly again, his face almost turning into a bitter gourd: "It's true, they know about my relationship with you, and they want to inquire about inside information.

Someone estimated the gold mining and import and export situation since the founding of the Huanxiang Kingdom, and counting the gold reserves of the Jili Kingdom, the inferred total reserves would not exceed [-] tons.

These golds are the total reserves of the two countries, and it is impossible to provide all of them to Huanxiang Industrial Bank to make physical gold coins.Even if this is done, it is only 250 million pieces.

They came to me mainly to find out the exact figures, including your existing gold reserves, and the total amount of gold that you can mobilize without going through international market transactions in case of emergency. "

Hua Zhenxing: "Do you really want to know these numbers?"

Rothschild quickly shook his head and said, "No, no, no, the only way to be worthy of my friend is to ask you not to tell me. As long as I don't know, there is no way to disclose it to others."

Hua Zhenxing pondered and said: "The reason why you don't want to do that is because the target is me. But as you said, even if you don't do it, those people will do it.

If you refuse their invitation, it means that you have betrayed that circle, if you really want to join the group, just join the group.

With your participation, at least I can grasp some situations in time.Today we met in secret, and no outsiders know about it. I will not reveal it, and I believe Dr. Luo will not. "

Rothschild was silent for a long time, and finally heaved a long sigh, patted Hua Zhenxing's knee and said, "If I participated, I'm afraid it was to provide you with as much information as possible—the information that I can provide."

Hua Zhenxing: "You have already provided it."