Why was this considered a drastic measure?
Originally, gold coins were used as a currency. After they were released from the Irus Mint, they were directly circulated between the Star Diamond Bank and the consumers. Due to the special characteristics of gold coins, there was no need for the Irus Mint to participate.
The Megalosaurus liked gold, and the Goblins liked wealth. This was the reason why the two sides could reach a consensus on gold coins. However, if gold lost its currency status, then the cooperation between the Goblins and the Dragons would disappear!
On the other hand, after the gold coins were exchanged for paper money, the consumers would inevitably have to face the depreciation of the currency. In this situation, they could only go to the Central Bank of Prandal to exchange the gold coins.
In addition, the Central Bank of Prandal had obtained the high-level authority to regulate the currency and issue it. This was equivalent to inserting a management organization between the Star Diamond Bank and the consumers.
In this case, the Star Diamond Bank could not be too casual with their savings policy. They would have to look at the Central Bank of Prandal's face.
What was worse was that the gold coins in their vault would all be exchanged for the new paper money. This was not so simple, and there were a lot of things going on inside.
Would the Megalosaurus be willing to exchange the gold coins that had been taken away for paper money?
Jialian was in an extremely bad mood. He secretly glanced at Sasaglot, then said, "Lord Tang En, I think this is a little inappropriate. What if people are not willing to exchange for paper money? Do you think you can force them to do it? "
"Of course I won't force them."
Tang En took a sip of tea to moisten his throat. Without waiting for Jialian to breathe a sigh of relief, he said lightly, "However, we will give them a deadline. If they are not exchanged after this deadline, we will remove the status of gold coins as a currency and treat them 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 would not increase after losing its status as a currency because it had a wide range of industrial applications.
However, in Prandal, this method was not feasible.
Gold was soft and could not be made into armor.
Gold was not a good conductor of magic power, and it was not as useful as magic metals in the application of magic.
The rarity of gold was only among ordinary metals. In the entire Prandal and even the Astral Plane, the reserves of gold were definitely not rare. There were even rarer magical metals here.
There was no complicated microelectronic technology here that required the use of the characteristics of gold.
Therefore, it was very likely that gold would only be used to make beautiful tableware, decorations, and so on.
The market value it represented would plummet.
Tang En shrugged and continued, "At the same time, it also means that if the gold coins in your vault are not exchanged or circulated, you can play however you want."
Even if the Megalosaurus wanted to collect a large amount of gold, the decrease in gold would not affect the currency circulating in the market.
In short, Tang En's attitude was very clear. He was determined to abolish the gold standard and remove the status of gold as a currency. After all, gold was going to be used as the raw material of Oricha steel. If the price was still so high, the cost would be quite difficult to control.
Gary took a deep breath and said in a deep voice, "Lord Tang En, you are too confident. The value of gold coins is widely known. It is not something that you can abolish just because you want to. The Solant Kingdom, the Kingdom of Gris, the Kingdom of Ronitte, the Empire of Ryan, and even those duchies are still using gold coins. You can't force everyone to do what you want."
Tang En looked at him meaningfully and said, "That's what I need to worry about, isn't it?"
He had been working hard to promote the influence of the Datang Chamber of Commerce. What was it for?
Leading technology!
Far more financial resources than ordinary chambers of commerce!
Relying on the huge influence of the Datang Chamber of Commerce, with the Datang Chamber of Commerce as the core to promote the new currency, this was the only chance for currency reform.
Relying on the policies of the Irus royal family? Haha …
From the moment the currency reform policy was implemented, gold coins would only enter the Datang Chamber of Commerce and not leave. All the money that flowed out of the Datang Chamber of Commerce would be replaced with paper money. Not only that, but the salaries and bonuses of the Datang Chamber of Commerce would also be completely replaced with paper money. Ellington would be the first to fully implement paper money.
At the same time, the salaries of the civil servants of the Irus Empire would all be replaced with paper money. It would not be long before all the gold coins in circulation in the Irus Empire would be completely recycled and smelted. They would be extracted into gold and stored until they could be synthesized into Oricha steel.
In addition, now that the Datang Chamber of Commerce had set up the Empire of Ryan and the Ronitte Kingdom, its influence was gradually expanding. Soon, paper money and gold coins would be mixed in circulation in those two countries. When merchants realized that carrying paper money for transactions was more convenient than gold coins, the influence of paper money would be further expanded.
At that time, even if the Star Diamond Bank was not willing to accept paper money, there was nothing they could do. Unless they were willing to give up on the savings market, they could only watch as the gold coins in their vaults were taken away bit by bit and eventually face bankruptcy.
At that time, Tang En could just open another Datang Commercial Bank to provide online savings services. Wouldn't it be great to take over the entire Star Diamond Bank market?
Tang En said earnestly, "The times are progressing and society is reforming. If you don't follow the footsteps of the times, you will only be eliminated."
"It's useless to say so much."
Jia Lian could only place his last hope on Sasaglot. "His Majesty the Dragon King will not agree to the currency reform plan!"
"I agree."
"You see, I already said … Wait!? Your Majesty The Dragon King!? What did you say? You agree!? "
The unexpected reply made Jia Lian completely dumbfounded.
"Yes, I said I agree."
Sasaglot waved his hand and said, "We will discuss this matter with Reeves. You don't have to say anything more."
Jia Lian felt as if he had been struck by lightning. 'What's wrong with this world?
Even the Megalosaurus, who loves gold coins so much, can actually accept such a ridiculous reform plan!? '
"There's no time to lose. Let's go find Reeves now."
Tang En stood up and Sasaglot nodded. Then, the two of them directly used teleportation to leave.
The muddle-headed Jia Lian didn't know how he left the Lord's Mansion. He only knew that he was getting further and further away from the dazzling gold …
"What a rare guest!"
When they saw Reeves, he was riding his tricycle in the garden. Seeing Sasaglot looking at his tricycle curiously, Reeves grinned and said with a flattering expression, "Your Majesty The Dragon King, do you want to try it?"
"Forget it, it doesn't suit me."
Sasaglot waved his hand and sat down next to him.
Reeves looked at Tang En curiously and said, "Lord Tang En, Alinx is currently bustling with activity. Why did you think of coming to sit here with me?"
"Of course, I have something to discuss with you."
Tang En smiled and explained the matter of the currency reform to Reeves.
As he expected, when he heard that Tang En had reorganized the Irus Mint into the Central Bank of Prandal, Reeves panicked. However, he didn't speak immediately and listened to everything.
When he learned that the Central Bank of Prandal didn't provide savings and loans, he breathed a sigh of relief. But then, he became nervous again.
"Paper money to replace gold coins? This is simply, simply whimsical! "
Reeves said with a look of disbelief, "How can a mere piece of paper be compared to the value of gold coins?"
Tang En pondered for a moment before saying, "Mr. Reeves, if I want to buy something from you, but I don't have any cash on me, then I'll write you an IOU. I'll take the item first, and then I'll give you the money in a few days. Can you accept this transaction?"
"Of course, you definitely don't lack that money."
Tang En smiled and said, "Since an IOU can represent a certain value of money, why can't paper money?"
Reeves was stunned and didn't know how to answer him.
"We came to you just to communicate with you and open the Star Diamond Bank's paper money storage service as soon as possible. You can directly exchange currency with the Central Bank of Prandal. When customers withdraw cash, they can replace gold coins, silver coins, and copper coins with paper money of equal value. This will help us promote the circulation of paper money as soon as possible."
Seeing that Reeves wanted to say something, Tang En waved his hand and continued, "You can refuse to accept this condition and continue to insist on trading with gold coins. However, if customers take paper money to you and you don't accept it, this market will inevitably give birth to another bank that provides this service, and you can only watch your customers fall into the arms of other banks."
"Hiss …"
Reeves took a deep breath and subconsciously looked at Sasaglot, "Your Majesty The Dragon King –"
"I have already expressed my support for Tang En's currency reform plan."
Sasaglot raised his chin and said, "You guys talk, don't worry about me."
Sasaglot came over just to express his position. The specific discussion would be up to Tang En and Reeves.
"Lord Tang En, this news came too suddenly. I can't give an answer right away."
Reeves decided to drag it out and carefully consider the risks and opportunities.
"Of course, this is your right."
Tang En made a "please" gesture and said with a smile, "But I won't slow down the implementation of the currency reform. I guarantee that the entire Irus Empire will complete the currency conversion in less than a month. Even the shadow of the new paper money will appear in Nanilla. They will likely begin to face a situation where they won't be able to save money. I think that at that time, you will make the right choice."
Reeves was anxious, "You are forcing me to abdicate!"
"No."
Tang En calmly pulled his collar and said, "I'm just reminding you in good faith. The reform has already started. Whether you want to catch up or stay where you are, it's all up to you."
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