The MonetaryCoin Series — Machine Regulated Coin Cap
MonetaryCoin is a new blockchain project based on an economic philosophy called Monetarism.
Monetarism was made famous by Nobel Prize winning economist, Milton Friedman. Friedman claimed that all inflation comes from the central bank, and that the amount of money in the economy should grow at the same rate as the economy itself. Much like a large engine requires more oil than a smaller engine – as an engine grows it needs more oil and as an economy grows it needs more money.
A Novel prize winning theory
However, there is more to monetary policy than just Monetarist theory. According to The Board of Governors of the US Federal Reserve, knowledge of Monetarism is necessary but not sufficient for the conduct of monetary policy. The founders of MonetaryCoin agree. MonetaryCoin represents a simplified approach and is designed to exist in the shadow of a far larger fiat money supply.
Central banks are known for gambling with their credibility in pursuit price stability and full employment. When correct, domestic residents benefit greatly – but when central banks err the consequences can be dire. Blockсhain technology allows an algorithm to make monetary policy, thereby eliminating errors from mis-gambling by the central bank. Operating at 1% of a money supply, the MonetaryCoin can offer a somewhat stronger currency, less subject to excess inflation and excess contraction.
MonetaryCoin: Algorithmic Control of the Coin Cap
The decentralization and anonymity of cryptocurrency initially attracted stakeholders with a desire for privacy. However, this made governments and central banks worry about the possibility of money laundering. To address the crypto community’s desire for privacy and the regulators desire for transparency, the MonetaryCoin series provides stakeholders with the opportunity to verify their identity to the counterparty in a transaction.
Only the hash of the transmitting counterparty’s identity is posted to the blockchain, so that information is truly anonymous to all but the recipient who has the key to decrypt the information.
The innovative features of the MonetaryCoin series appear well engineered and highly innovative (Proof of Stake, elective AML-KYC, and Econometric Oracle). The oracle is perhaps the most notable. This is the first project to offer an such an oracle with a straightforward algorithmic control of the cap on the supply of minable coins.
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