474 Issuing Currency (1/2)

Chapter 474: Issuing Currency

Translator: _Min_Editor: Rundi

The next morning, there was a long line up in front of the Sixth Street Bank.

Under the supervision of NAC soldiers, people handed in their crystals and changed them into papers with a special identification code. Some even walked out empty handed.

Is the NAC government robbing people?

Clearly not. Due to a culture that praised power, all the survivors possessed guns. And from people rushing in with an expression afraid that the bank wouldn't accept their crystals, they clearly wanted to be inside. And the NAC soldiers that looked threatening were ensuring order in the line.

As to the reason, it had to do with a newly implemented policy.

To change the current chaotic pricing environment on the Sixth Street market, the NAC government used the Sixth Street bank to introduce a new currency known as ”credit point”, credit in short. It was not guaranteed by any precious metal. Instead, it was guaranteed by NAC's credit.

At the same time, any of the products defined as specially supplied could only be traded with credit. The products were all made through NAC factories. For example, food, Carm tree sap, iron, aluminum, firearms, etc. It covered almost all the necessities of life.

A kilogram of rice was ten credits, a compressed cracker was two credits, a kilogram of flour was 16 credits… Although the price doubled compared to a month ago, in the currently chaotic market, the price was indeed thoughtful.

Two crystals were equivalent to one credit, and credit point exchanging back to crystals had a 10% tax to it. In mid-September, the Sixth Street planned to introduce 5 million credits and the NAC government promise to provide 500 tons of rice, 100 tons of flour, and 100 thousand pieces of compressed crackers to the market by next spring.

The rights for the food trade in Wanghai was taken back from Zhao Corporation and controlled by the market established by the NAC government at the west gate of the Sixth Street.

The quantity of the credits introduced was a decision made after careful deliberation between Jiang Chen and Chu Nan.

The paper bills had the amount of 1, 5, 10, 100, with a total of 3 million credits distributed. 5 million virtual credits were released and recorded with the DNA sequence of the individual and used with EP implemented with the ”credit trade chip.” All data was stored in the bank's database, and virtual trades must be done in NAC jurisdictions with information relay stations.

The employees in the military zone of NAC would be paid in credits to prevent the depreciation of crystals impacting the net worth of its employees.

The introduction of credit received extensive support from the Sixth Street merchants.

The merchants were all smart people. They knew that only the existence of order would allow for their assets to continually appreciate and to prevent everything they own from becoming worthless the next day.

To the merchants with a high amount of crystals, Jiang Chen opened an exclusive channel for them with a total of 8 million credits dedicated to them to collect the crystals depreciating in their hands. The specially introduced credits would be stored in the merchant's account. Jiang Chen also outlined that before November of this year, 90% of the special credits could not enter the market. 50% would be made available after November before lifting the restriction in January of next year. This would prevent a large amount of currency from flooding the market and disturbing the price.

The introduction of credits marked the end of the era where goods were traded for goods in the Wanghai area.

The crystal detector commonly found on the streets would gradually become part of history. With the credits, people would choose to trade with EPs, just like how people paid with their phone in the 21st century.

Not only this, Jiang Chen planned to push the ”NAC standard” to other places.

Use the invisible fulcrum known as Economics to lift the resources of the wasteland. Just like in the other world, where the USD used gold and oil to kidnap the world economy. Credits would use the prosperity of the Sixth Street and the food storage of the NAC to control all trades on the wasteland.

The specifics were demonstrated by the Zhao Corporation changing their crystal strategy and use NAC credits to charge for goods. Crystals would become one of the products and no longer used as a trade equivalent.