The sudden appearance of the new currency in the market caused an uproar.
After all, no one had heard of such a thing before, and such a sudden attack caught everyone off guard.
The currency reform affected the rhythm of the entire Glory Festival, and for a moment, everyone was discussing the new currency.
Those who were in the know naturally understood why the new currency was issued, while those who were not in the know did not understand why gold, silver, and copper coins, which had been used for thousands of years, were suddenly changed to paper money.
Passerby A was confused. "What are you giving me? Money made of paper? Can this thing really be used?! "
Counter Employee B smiled. "Of course it can be used, this is a newly issued currency. We have just received notice that all the customers are required to use paper money for their change, and all the shops in the Datang Chamber of Commerce accept paper money for transactions."
Passerby A was furious. "What a joke! Why should I use my gold coins to exchange for a piece of paper?! I want to exchange it for gold coins! "
Counter Employee B said seriously, "Why don't you want to exchange the heavy gold coins for the light and equivalent paper money? From a portability point of view, paper money is undoubtedly easier to carry around. "
Passerby A straightened his neck. "Gold coins are gold, and gold can be used to buy things!"
Counter Employee B was very patient. "Paper money is equivalent to gold coins, and can be used to buy things."
Passerby A began to make a scene. "I don't want to listen, I don't want to listen! I just like gold coins! They feel good in my hands, and they shine under the sun! "
Counter Employee B smiled and used her trump card. "Now, if you use paper money to buy things at the Datang Chamber of Commerce, you can enjoy a 20% discount. The royal family has also issued a notice that using paper money to pay taxes can enjoy a 5% tax exemption —"
Passerby A immediately looked righteous. "The royal family's policy must be supported. You, can you exchange all my gold coins for paper money?"
Counter Employee B was speechless.
In order to cooperate with the Glory Festival and promote the new currency, Tang En waved his hand and discounted all the products of the Datang Chamber of Commerce. Everything that was purchased with the new currency would enjoy a 20% discount. Such a huge discount made many consumers who had been tempted but had not made up their minds to finally make a move. They forcefully swept away another wave of gold coins. On the other hand, they also gave out a lot of the new currency.
The above situation happened almost at the same time at the counter of every Datang Chamber of Commerce in every city. Not only the Datang Chamber of Commerce, but when the owners of other chambers of commerce and shops learned that they could enjoy a tax reduction by using paper money to pay taxes, they all went crazy and rushed to the Mint of Irus … Oh, no, it should be called the Central Bank of Prandal now. They carried bags of gold coins, and some even took out crystal cards from the Star Diamond Bank and asked to exchange their gold coins for the new paper money.
Don't think that a 50% tax reduction was too little. The original tax of 100 gold coins was reduced by 50%, which meant that they could pay 5 gold coins less. Correspondingly, it also meant that their profits would increase by 50%. How could these merchants not be excited?
They couldn't wait to raise their hands and feet to welcome more and more of such policies.
But in the face of such a situation, some people became anxious.
As Tang En expected, when the news that the Mint of Irus was reorganized into the Central Bank of Prandal spread, Jialian immediately became anxious. He rushed to Tang En with red eyes and asked him what was going on.
"My friend! When we first cooperated, we clearly said that you wouldn't be involved in the banking and finance industry! (See Chapter 450) "
Jialian shouted in exasperation. "This was not only agreed by you and the great boss, but also by the Dragons. Why did you go back on your words?!"
"Calm down, calm down. I was just going to look for your boss. Since you're here, I'll tell you about it first."
Tang En pressed his hands together and motioned for Jialian to sit down and take a breath with a smile on his face. Then he said, "First of all, this bank is not a normal bank. The Central Bank of Prandal is not like your Star Diamond Bank. We don't provide savings services."
Jialian was stunned. "What do you mean?"
"It's literally what it means."
Tang En said with a smile, "The Star Diamond Bank is a commercial bank that provides savings, transfer, consumption, and loans to citizens. The Central Bank of Prandal is a bank that is responsible for issuing and managing currency. We only supervise the currency and are not involved in the savings business."
"I see …"
Jialian was slightly relieved. As long as they were not involved in the financial savings business, it would be fine.
But …
Jialian's intuition told him that the purpose of the Central Bank of Prandal's existence was far more than simply issuing a new currency.
In fact, of course, it was not that simple.
The current financial savings business in Prandal could be said to be completely monopolized by the Star Diamond Bank. Even if other people wanted to get involved, they could not do so. They did not have the conditions or the ability to do so.
However, if all the currency was handed over to a commercial bank, this was obviously a very, very dangerous thing. It was not that they were afraid of the goblins having ulterior motives, but the greedy nature of the goblins and the Megalosaurus determined that most of the gold coins would only go in and not out. As more and more gold coins were plundered by them, there would be less and less gold coins circulating in the market. This led to the illusion of deflation mentioned before.
Now, Tang En had reorganized the Irus coinage into the Central Bank of Prandal. A central bank was directly determined. This was the unit responsible for issuing the legal tender of the entire Prandal, and the Star Diamond Bank had to be bound by the policies of the Central Bank of Prandal.
The new currency was temporarily linked to gold coins. When the new currency was completely popularized in the future, it would further be completely separated from gold coins and become an ordinary credit currency.
At that time, the goblins and the Megalosaurus who were obsessed with collecting gold coins would find that all the gold coins in their vaults had been replaced by paper money. Gold would return to its status as an industrial raw material.
By establishing a higher-level administrative unit, they would indirectly destroy the Star Diamond Bank's position as the leader of the financial industry and pull them down from their pedestal. They would be able to honestly operate their own savings business and prevent them from continuing to influence the currency circulation in Prandal. This was another benefit of the currency reform.
"That's not right!"
Jialian suddenly realized after drinking a cup of tea. He jumped up and said, "If the new currency you issue becomes legal tender, then won't all the gold coins in our vaults be exchanged for new paper money?! Then what about our gold coins?! "
"Don't worry."
Tang En pressed his hands together and continued to calm Jialian's emotions. "Isn't it natural for the new currency to replace the old currency? This is what I'm going to talk to your boss about. "
"How can we agree to exchange gold coins for a pile of paper?!"
Jialian was quite agitated. "Gold coins are gold!"
"But who determines the value of gold?"
Tang En spread his hands and said, "It's the market. If the new currency we issue is accepted by the citizens in the market, then the new currency will have the same value as gold. "
"That's not the same. The new currency itself is just a piece of paper!"
"What a currency needs is the meaning it represents, not the value of the currency itself."
Tang En said with a smile, "And don't you think that the space needed to store the currency is smaller? Your vaults can store more paper money. What's more, a lighter currency is more convenient for the circulation of trade. I think this is a good thing with no harm. "
Good with no harm? That's for you!
We are going to use gold to exchange for paper!
Jialian still couldn't change his impression. In his mind, money should be equivalent to gold. Gold itself was very valuable. Using heavy gold coins to exchange for a piece of paper?
He felt very uncomfortable in his heart!
"You can't make the decision on this matter. I'll talk to your boss directly."
Tang En pointed to the door with a smile and said, "It just so happens that your big boss is also here. He'll be here soon."
A moment later, Jialian knew who the big boss Tang En was talking about was.
Seeing the figure walking in, Jialian sucked in a breath of cold air and jumped up in an instant. With a face full of smiles, he went up to him and said, "Why, why are you here? Your Majesty The Dragon King! "
"You are?"
"I'm Reeves' deputy. I'm currently in charge of everything in the Ellington branch of the Star Diamond Bank. My partner is Alejandra Amanda."
"Oh, Alejandra's partner."
Sasaglot suddenly understood and nodded. "Hello, I'm on vacation in Ellington for the next few days."
On vacation in Ellington?
Dragon King?
Jialian was dumbfounded.
"My friend, I heard that you have something to discuss with me?"
Sasaglot sat down opposite Tang En.
"Yes, it's about the currency reform and the issue of a new currency."
Tang En directly laid his cards on the table with Sasaglot. He was very clear about who was in charge of the Star Diamond Bank. Although Reeves had a great reputation, it was a pity that the Dragons had the final say on how to run the Star Diamond Bank. And of course, the Dragons would follow Sasaglot's lead.
"What's the point of telling me about your human matters?"
Sasaglot didn't quite understand. They didn't use human currency, so it didn't affect them at all.
Jialian became anxious. "Your Majesty The Dragon King, this matter is very important! The new currency they're issuing is made of paper! Not gold! "
"Oh, paper?"
Sasaglot became a little interested. "What do you mean?"
Thus, Tang En explained the details of the new currency to Sasaglot. Then, he said, "According to the current currency situation in Prandal, I think it's necessary to issue a new currency, so we're taking action."
Sasaglot nodded. "What you said makes sense."
Jialian became anxious. "Your Majesty The Dragon King! He wants to use paper to exchange for the gold in our hands! "
"You've misunderstood, Sir Jialian."
Tang En waved his hand. "Currently, the amount of paper circulating in the market is completely linked to the amount of gold that people exchange for. Do you understand what this means?"
Jialian didn't understand at first, but after thinking carefully, he understood the meaning behind Tang En's words.
This was taking drastic measures to deal with the problem!
You've already exceeded your reading limit for today. If you want to read more, please log in.
Login
Select text and click 'Report' to let us know about any bad translation.
