Monetary system

Abstract

A monetary system having at least one financial institution server, at least one market administrator server with special software, where in addition to existing currencies a new currency unit is present, which is a special software, whose value and quantity is calculated in relation to human life value, having a function of categorizing currency unit types for clear managing distributed streams according to the appointed transaction goals. Financial instruments are generated in a new currency and self-liquidating in this currency. A measure of influence of actions in this currency on prices is calculated, and thus composite demand on currencies is calculated. Artificial Intelligence is used for personalization of categorizing currency unit types for clear managing distributed streams according to the appointed transaction goals. Financial institutions are distributing seigniorage between the participants of a monetary system.

Description

[0001] Monetary System

[0002] The invention belongs to the sphere of economics, finance, and information technologies. It embraces different aspects of managing monetary assets, credits, investments, and regulation of money circulation. It also includes technologies and software for automating financial processes and data analysis.

[0003] Known are a few kinds of monetary systems that are used in different countries and under different economic conditions. Here are some of them:

[0004] Fiat monetary system: it is based on money that is not secured by physical goods but is supported by a state. Examples: United States dollar, Japanese yen.

[0005] Gold standard: in the past is was widely used where a country’s currency was secured by gold. Currently it is practically not used.

[0006] Bimetallic standard: a system in which the currency is secured by two metals, commonly by gold and silver. It was used in some countries in the XIXth century.

[0007] Cryptocurrencies: decentralized digital currencies based on blockchain technologies. Examples: Bitcoin, Ethereum.

[0008] Central Bank Digital Currencies (CBDC): State digital currencies that arfe managed by central banks. Examples: Chinese digital yuan, digital Euro project.

[0009] System of Fractional Reserve Banking: a system in which banks hold only a fraction of clients’ deposits as reserves, the rest being used for crediting. Those systems depict the variety of approaches to managing money circulation and monetary resources. Each monetary system has its disadvantages that may manifest depending on the economic conditions and peculiarities of management. Here are some of them:

[0010] Inflation: in fiat monetary systems central banks can emit more money, which can result in inflation and depreciation of a currency.

[0011] Deflation: The reverse side of inflation is deflation, it can arise in systems with fixed amount of money, such as gold standard. Deflation may cause economic recession.

[0012] Liquidity shortage: in Fractional Reserve Banking system banks may face liquidity problems in case too many depositors call their deposits at the same time.

[0013] Volatility of cryptocurrencies: Crypto currencies tend to have high volatility, which makes them less stable for everyday use.

[0014] Difficulties of management: Cryptocurrencies and digital currencies require new approaches to management and legislative regulation, which may prove to be a difficult process.

[0015] Security risks: Digital currencies tend to be susceptible to cyberattacks and fraud, which requires high security efforts.

[0016] Unequal distribution of wealth: In certain monetary systems unequal distribution of wealth is possible, which can lead to social and economic tension. Each system has its unique challenges, and solving these problems requires a complex approach and adaptation depending on particular conditions. These systems don’t account for social aspects such as the value of human life, which can lead to inefficient distribution of resources and to insufficient resilience of financial markets.

[0017] The task of the invention is to create such a monetary system that will enable achievement the goals of stable development of a person, improving the life quality and increasing its value, and to get rid of disadvantages of existing monetary systems to a maximum extent.

[0018] The set task is resolved in the following way.

[0019] The suggested monetary system includes at least one server of a financial institution, at least one server of a market administrator, where specialized software is installed, where, in addition to existing currencies present is a new currency unit which is a special software, the value and amount of which is calculated in relation to the value of human life and that has a function of categorizing the types of currency unit for transparent management of distributed flows in accordance to designated transaction details, the instruments of financing are generated in new currency and are self-settled by this currency, where calculated is the extent of impact of actions in it onto prices, and thus the aggregate demand for currencies is calculated, artificial intelligence is used for personalization of the function of categorization of types of currency units for transparent management of distributed flows in accordance with the designated transactions details, financial institutions distribute the seigniorage among the participants of the monetary system. .

[0020] Technical result that is achieved

[0021] The monetary system enables, in particular, receiving a mechanism to support the source of income for population, particularly of those below the poverty line, which income can be used both by international financial institutions and commercial financial institutions, on the one hand enabling to perform credit expansion and to embrace the market that was previously inaccessible before, and on the other hand, to resolve the first mission of stable development goals, improving the quality and accordingly the value of human life, with complying with the missions of Bretton Woods 2.0 - support of prices stability.

[0022] The existence of the suggested monetary system is proved by a model with which the created special software has been verified an application for registering a currency code has been filed to the International Organization for Standardization (ISO) and a confirmation has been received stating that the currency has been selected to TOP 25 for issuing a currency code.

Claims

CLAIMS1. The monetary system that includes at least one server of a financial institution, at least one server of a market administrator, where specialized software is installed, which differs with that in addition to existing currencies present is a new currency unit which is a special software, the value and amount of which is calculated in relation to the value of human life and that has a function of categorizing the types of currency unit for transparent management of distributed flows in accordance to designated transaction details.

2. Monetary system of claim 1 , which differs with that financing tools are generated in the new currency and are self-settled by this currency.

3. Monetary system of claim 1, which differs with that calculated is the extent of impact of actions in it onto prices, and thus the aggregate demand for currencies is calculated.

4. Monetary system of claim 1, which differs with that artificial intelligence is used for personalization of the function of categorization of types of currency units for transparent management of distributed flows in accordance with the designated transactions details.

5. Monetary system of claim 1, which differs with that financial institutions distribute the seigniorage among the participants of the monetary system.