MonetaryCoin: Revival Of Monetarism — A Nobel Prize Winning Theory
The blockchain-based project MonetaryCoin embodied the main ideas of monetarism — a school of thought in economics.
The idea behind MonetaryCoin dates back to 1976 when Milton Friedman won the Nobel Prize for his monetary studies. According to this economic theory, monetary policy should aim to keep the growth of money supply at the rate commensurate with the increase in productivity and demand for goods.
The underlying idea is that the required change in money supply can be calculated by measuring of the growth of the economic activity.
However, such a view has not found a response from The Board of Governors of the Federal Reserve System, who acknowledged that monetarism alone cannot control the money supply and that there are many other factors influencing inflation processes.
Nevertheless, the introduction of blockchain and DLT allowed the idea of monetarism to be revived in the form of a supplemental coin which serves a specific purpose and reduces the rike created by the manipulation of money supply by central banks.
Decentralization and the lack of state regulation make cryptocurrencies vulnerable. After all, the government can decide to ban all crypto activities, but at the same time, it might choose to embrace the sphere and enjoy the fruits of the economic growth it bears.
MonetaryCoin: control of an algorithm over the money supply
The idea of MonetaryCoin allowed implementing of monetarism, simultaneously excluding the risk of a sudden ban.
The essence is in the internal policy of the project, which provides for the AML-KYC introduction, the identity verification procedure aimed at preventing money laundering. In fact, any banking institution has the same algorithm. It is impossible to open an account with a bank without identity verification.
To ease integration with the financial system, MonetaryCoin will offer an on chain mechanism to prove identity. The information is encrypted and shared only between the user and the receiver (e.g. a bank).
The process is optional and only used when needed by the user. For example, accredited investors who wish to report their holdings.
In case the feature is not used, the user enjoys the same level of anonymity like Ethereum itself.
More than twenty-five years ago, Milton Friedman foresaw the possibility of replacing of central banks with computers that would control the money supply. And now it can become a reality.
MonetaryCoin provides participants with a choice. The identity verification is optional, but it is always worth remembering that what is not regulated is prone to prohibition.
MonetaryCoin will help to control inflation and to get rid of the predominant position of financial regulators. This is exactly the opportunity the crypto industry have been waiting for since the first cryptocurrency was created. Milton Friedman’s idea, the genius of Satoshi Nakamoto, and the ERC20 standard dictate the future of the financial industry, and all of those are embodied in MonetaryCoin.