Current central banking defines something called base money and something called currency backing. They seem related.
Tax dollars are backed because they remover IRS agents from our homes. I get that.
I never got base money, or high powered money except that the S&L distributions are highly skewed. My model is not the central banking model, but the standard S&L technology we are employing, and in that technology, base money ate great big digit events that occur rarely. The reason is that the sandbox model assumes all activity is done by optimally observant bots in optimally observable trading pits.
Let make some mote equivalents.
The sandbox is not 100% backed.
But we guarantee currency at risk can remain within some bound, almost always. The risk of bankruptcy exists. Currrency risk is klnown because we all reveal currency risk when ate ate too early or late to he store when we swipe, the S&L technology gets it an charges or pay or earn an asynchronous interest payment.
The sandbox needs help with balance sheet.
The sandbox has histograms of virtual coin events. The apps on your smart phone and home computer can convert these into balance sheets. These apps know the smart contract layer, they know the context of product definitions.
Government banking regulation
There is no time in the sandbox, just relative rarity. There is no siegniorage unpriced in he sandbox. For he vast majority of quick and easy S&Ls, here is no owner, just ads. It is no arbitrage, no government activity can work in yhe environment.
Time sequenced interest payments
This is smart contract layer, they know abut mass and time up there, they handle it. All interest payins and payouts for the consumer happen ay about half the rate at which they shop. Depending on the pit boss Huffamn window limits (Redneck systems) and liquidity frequency, the consumer could carry debt for years and decades. But they need the mart contract apps to estimate time for them.
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