One major flaw that has continued since the dawn of the Federal Reserve has been the green paper note in which we use as our main form of currency. The paper itself holds no legitimate material value and can be rendered completely useless in the event of an economic collapse. Although we are nearing an age of digital currency, this would again be putting ourselves in another predicament where we now not only have a potentially useless currency in the event of economic crisis but this currency will not even be tangible. I propose we use a technology that is already approved in 5 states that infuses gold into tangible, fungible and useable currency, known as Goldbacks, that is likely to never lose its material value. I also believe making other precious metals as coins to replace the zinc and filler material in the current coins today to better represent their material worth. I am not proposing this take over other options such as crypto currencies and the federal reserve note, but to be a firm option to the people who want an alternative and more desirable form of currency.
I. Mint and Production
Valaurum is currently the only producer of goldbacks. They currently come in 1, 5, 10, 25, and 50 numbered notes. Each note has a different weight of gold attributed to it determining its value. Valaurum prints designs onto rolls of polymer sheeting and then has the atomized gold vacuum deposited creating a negative image on the opposite site of the note. So far, Valaurum claims that after 2 decades of developing this process no one has successfully counterfeited their goldbacks.
If Valaurum agrees to use their patent on developing this currency we could encourage other mints across the U.S. to also develop Goldbacks so that it can be more accessible to the general public. They would also have to pass a bill allowing the use of Goldbacks in all 50 states and since the price of Gold fluctuates it would help encourage a barter system, and one that people wouldn’t be afraid to bet on.
II. Current Issues with Goldbacks
The biggest issue currently is due to lack of mints that produce Goldbacks and the technology involved in producing them. At the present moment they cost almost twice the amount they are worth. If we get Valaurum on board with distributing their machines to more mints across the nation and allow Goldbacks as legal tender we can, hopefully, drop that additional premium that is apparently worth its weight in gold.
The other downside is that Goldbacks are similar to the green note in that its not as versatile. Most of us make our payments through a plastic card or an automatic digital transaction. The main point of this would be to give people a chance to have something tangible they can save or to use if they so desired. This way they also have the material value that the greenbacks lack indefinitely.