UNAV - USD Digital Money Issuers

USD

Digital Money issuers pyramid

Click on the buttons to expand

Monetary System Brief Overview

+ Scarcity

L0

NON-ISSUER Nobody's liability

Hardest Money/ Asset

Outside Money/ Commodities

Non-redeemable

REGULATED PERIMETER

OfficalPayment SystemSettlement Units

ISSUED MONEY/ LIABILITIES

L1

CENTRAL BANK

Liquidity crunch

Retail rCBDC & Wholesale wCBDC

Regulated Money of the Payment System

L2

U.S. BANKING SYSTEM & U.S. TREASURY

Tokenized Deposit Stablecoins

L3

End users access startsHERE!

INTERNATIONAL BANKS/ FIs NON-FINANCIAL INSTITUTIONS

Fiat Stablecoins (Eurodollars)

Softest Money/ Asset

UNREGULATED PERIMETER Shadow Banking

- Scarcity

L4

DECENTRALIZED PROTOCOLS

Stablecoins/ Flatcoins (Cryptodollars)

Expansion

In expansionary periods the area of ​​each level increases and in contractionary it is reduced

Contraction

DEC. STABLECOIN/ FLATCOIN ISSUER BALANCE SHEET STRUCTURE

Hover over boxes to expand info.

ASSETS

LIABILITIES

Brief Explainer

Fiat-Backed Stablecointokens

Decentralized Stablecoin tokens

Decentralized StablecoinsPROS & CONS

Cryptocurrency endogenous

Cryptocurrencyexogenous

Reserves composed of one or combinations of these assets.

Digital Money IssuedDLT/ Blockchain

Crypto LP or/and LSD tokens

Flatcoin tokens

FlatcoinsPROS & CONS

RWA tokenized

Overcollateralized buffer

Equity for the CDP

Mutual Yieldfrom assets

Price Peg OR #Tokens Increase

Flatcoins have a periodic yield target:Yield % = Inflation %

Inflation Rateconnector of the relationship

Assets/ Money mutualized by the token holders

Insurance buffer

Outside Money

WORLD MONEY SYSTEM BRIEF OVERVIEW

Non-redeemable since commodity standards collapse

Foreign Exchange = Price between currencies. Ex: EUR/USD

The world monetary system, a Dynamic Cone defined by hierarchical Currency Pyramids expanding and contracting over time. Competing pyramids where those with larger areas, like the USD, represent dominant world reserve currencies.It is a Hierarchical System both within each currency and between different currency systems.

JPY System

USD System

EUR System

MAIN FEATURES OF INDEPENDENT PYRAMIDS CURRENCY SYSTEMS

2. Credit-Based, Fractional Reserve Hierarchy

4. Dealers between hierarchies

3. Limited policy toolbox

1. Four Prices of Money

Main Policy GoalStabilizing the (P3) relationship:

USD

t0

t1

Credit created & distributed through competitive financial markets.

1. Hierarchical structureCredit issuance with a % of harder assets on reserve

Interest rate (P1)

Money supply

Purchasing Power (Price Level)

USD

L1

L2

USD

Primary dealersDirect market access to issuer's liabilities

Par price (P2)

2. Hierarchical access & privilegesAccess & privileges vary by agent type at each pyramid level.

Secondary dealersTrade on secondary markets

USD

Main Policy Toolbox1. Setting S/T policy interest rate (P1) 2. Influence S/T policy rate range via OMOs.

USD

t0

t1

Price level (P3)

Dealers by level(L1) Central Bank Liabilities(L2) Banking System Liabilities (L2) Govenment Liabilities (L3) Private Sector Liabilities

US GDP

USD

EUR

3. Money creationBoosting bank reserves and creating deposits via loans

Exchange rate (P4)

Challenges & Distortions

OUTSIDE MONEY PHYSICAL & DIGITAL COMMODITIES

Brief Explainer

DIGITAL COMMODITIES

PHYSICAL COMMODITIES

1. Gold
2. Silver
3. Bronce
4. Crude oil
5. Natural gas
6. Wheat
7. Corn
8. Coffee
9. Sugar
10. etc.

1. Bitcoin (BTC)_Ledger 1.0
2. Ethereum (ETH)_Ledger 2.0
3. Radix (XRD)_Ledger 3.0
4. Litecoin (LTC)
5. Bitcoin Cash (BCH)
6. Cardano (ADA)
7. Polkadot (DOT)
8. Chainlink (LINK)
9. etc.

BANKING SYSTEM CONSOLIDATED BALANCE SHEET STRUCTURE

Hover over boxes to expand info.

ASSETS

LIABILITIES

Wholesale wCBDC

Tokenized Deposit Stablecoins

Digital Money IssuedDLT/ Blockchain

Outisde Assets

Traditional deposits:- FDIC Insured - Non-FDIC Insured

Pyhsical Cash/ rCBDC &Bank Reserves/ Deposits

Reverse Repos

Repurchase (Repo) agreements

Gov. + Private Securities

Bank loans + Debt Securities

Equity Securities

Loans

Capital/ Private Seigniorage

Mortgages

Profit made by the money issuer

Value created ex-nihilo by the issuer

FIAT BACKED STABLECOIN ISSUER BALANCE SHEET STRUCTURE

Hover over boxes to expand info.

ASSETS

LIABILITIES

Brief Explainer

Fiat-Backed Stablecoin tokens

Tokenized DepositStablecoins

Traditional Deposits

S/T Gov. Debt Securities

Digital Money IssuedDLT/ Blockchain

The reserves include bank-issued deposits and may also consist of one or a combination of other assets.

S/T Private Debt Securities

RWA/ tokenized

Other Assets

Yieldfrom assets

Equity/ Private Seigniorage

Profit made by the money issuer

CENTRAL BANK BALANCE SHEET STRUCTURE

Hover over boxes to expand info.

ASSETS

LIABILITIES

Commodities

OutsideAssets

Retail rCBDC

Digital Money IssuedDLT/ Blockchain

FX Reserves & SDRs

Wholesale wCBDC

Physical Cash

Gov. Securities

Base MoneyM0

Private Debt/EquitySecurities

Bank Reserves/ Deposits

CREDIT

Reverse Repos

Commercial Bank Loans

98.9% of total Assets:U.S. Federal Reserve System

Gov. + Foreign Official Accounts

Repurchase (Repo) agreements

Capital/ Public Seigniorage

Central BankLiquidity Swaps

Profit made by the money issuer

Value created ex-nihilo by the issuer