Coins and notes on the global dollar standard offer a reasonable rate of return without any need for explicit interest or loss of liquidity, while being a fundamentally international medium of exchange and a financially relevant unit of account. Customers will benefit from a functional improvement on conventional money that strongly differentiates member institutions from less progressive competitors. Early adoption is likely to result in a sustained market share advantage. In addition, growth of the GRS will disproportionately benefit early shareholders.
The market for new coins is infamous for its pump-and-dump incentive structure. Members of the Global Reserve System will benefit from a revenue model that encourages long-term market growth. Coins and notes will compete for sustained market share on the basis of institutional and technical factors rather than price speculation. Reliability, functionality, and innovation will tend to drive sustained public demand. Coins and notes can be used outside their institution of origin, so that general monetary utility within the larger economy may well become the main determinant of the money supply.
The advent of a multi-provider, financially neutral standard of value is an essential step in the expansion of crypto commerce. For the first time, holding funds in the form of cryptocurrency will involve little to no inherent financial cost or risk. Being a reflection of global investment opportunity, global dollar coins and notes are ideal for international transactions and the valuation of investment assets. This standard promises to simplify the integration of crypto exchanges, stock brokers, and other financial institutions around the world.
The purpose of interest rates is to signal the opportunity cost of money; the global dollar is the opportunity cost of money, free of noise from currency volatility and monetary policy. As the only financially neutral currency, global dollar coins and notes remove ‘time value of money’ issues, and largely eliminate exposure to specific asset classes, currency risks, and interest rate risks. Global dollars are the ideal standard for general international commerce. These properties will drive demand that ultimately translates to strong dividend revenue for member institutions.