Automating FX transfer with Fedwire contracts

 The collective central banks offer bank to bank currency swaps of differing currencies. This service is quantized into Currency Swaps, CS. 

CS are bought and sold in local currencies.  CS not used earns an interest swap when on deposit. Interest swap in in partial CS, we are carrying round off error, there is a CS S/L function. The automated brokers sees to it that Swaps on loan vs Swaps on deposit stay within bounds of round off error.

Very simple and makes bank to bank account adjustments easy. Currency values are relative to local demand for CS. This is like a finite block chain, an adaptive block chain. The broker just wants to keep the ledger reasonably stable, enough for local markets to settle on price. The structured queue model implied for CS demand should tend toward actual trade structured channels, be very coherent.

For banks, this is great, they can all swap various currencies, backed by Fed wire, meaning all proof of stake CBs have signed off on their accounts.

But weak economies will hold CS as local money! The broker does not really care, that is like a productivity shock, they happen, that risk is shared.  This is a lot light bitcoin, as if bitcoin erased all the ledgers that have been cleared. CBs, collectively, are proof of stake, it is cleared when there is a sign off.

Under my bank reform, this is already a done deal, banks set up the software transfer and any bank in any CB zone can use it if they have access to their local CB Fedwire. This is all the fiats, they can all allow customers to be multi currency, and the banks can hold these CS contracts. Any customer alters their set of currencies by using a CS, and suffering an interest swap cost. Every currency swap goes through the local market price. CS contracts on deposit make partial CS interest.

Pricing. The value of a CS in local currency measures the local demand to move their currency out. If another party own a CS they sell it over the foreign currency market of choice. The CS is cleared from th Fedwire books. Their is always a market for CS in every local currency else the CS itself becomes local money.  Very simple, very intuitive, stable, automated profitless. Stable contract because each participant is buffered by a  fair market on contract exit.