In a small town, a torrential rain falls.The city has been seemingly deserted for several days.The crisis has long been shaking this place, everyone has debts and lives on the basis of credits.Luckily a millionaire arrives and enters the only small hotel in the place. Installs a room, puts a 100 Euros note at the receptionist's table and you'll see if you can find a quarter of your liking.The head of the hotel takes the note and runs to pay his debts with the carnage.He takes the note and runs to pay his debt to the pig breeder.At the moment, this goes out running to pay what owes you to the animal food supplier mill.The owner of the mill takes the passage to the flight and runs to liquidate his debt with Maria, the prostitute to which he has not paid him, in times of crisis until she offers credit services. .The prostitute with her hand goes out to the small hotel, where she brought her clients the last times and that she had not yet paid and handed the note to the owner of the hotel.At this time, the millionaire who just took a look at the rooms says he doesn't convince him any, take the note and go away." No one won a penny, but now the whole city lives without debt and looks at the future with confidence!"This tale, besides being very funny and succeeding, explains in a graphic and simple way that one of the most important functions of money is the account unit.Payment processing within the same ecosystem (market) generates circulating value.With only 100 Euros were canceled debts by 600, which actually means that, with the emission of only 100 units, the circulation speed of money produced purchasing power six times more than its monetary base, so to speak.The conflict begins when the circulator leaves the process or breaks or accumulates.For our case, let's imagine that the head of the hotel would have due sheets cleaning services to an external supplier, from another people. Neither the butcher nor the breeder of pigs, nor the local mill, nor the prostitute could honor their debts. Similarly, the owner of the hotel would also not have been able to cancel his own, because he would only have changed from creditor, now he should be 100 euros to the millionaire.It's amazing how, when money out of circulation is by accumulation in bank accounts or by absorption of securities by the central banks, the economy is paralyzed and cuts the payments chains.Transactional digital payment systems allow you to create enclosed spaces for the different actors of the economy, mainly accountowners, small personal ventures and regional economies can rely on specific money games to drive the economy of these sectors.Close development models can incorporate Blockchain technology to organize Transactional ecosystems of closed payments that can be applied modern Monetary emission schemes and policies for assistance and development within simplified tax systems.Argentina is at an ideal time to start pilots of this kind. To develop the most delayed sectors with the weights that issue the Central Bank, because for this they have value.Instead, the richest actors lost interest in our weight, disregarding their value.In moments of scarcity even for certain sectors of the economy our poor BCRA can be the millionaire of our history.Perhaps the time has come when each one receives what they value.
8/12/2022 - economy-and-finance
How much are 100 Euros worth?
Do you want to validate this article?
By validating, you are certifying that the published information is correct, helping us fight against misinformation.
Validated by 0 users
horacio gustavo ammaturo
I am Gustavo Ammaturo. I have a degree in Economics. CEO and Director of infrastructure, energy and telecommunications companies. Founder and mentor of Fintech, DeFi and software development companies. Blockchain Product Designer.
Total Views: 5
Comments