Smartbond (monetary system)

For other uses, see Smartbond (finance).

Smartbond is a monetary system, based on a currency of the same name, which operates independently of any government institution.

The system implements economic principles including the Friedman k-percent rule (with the money supply growth rate fixed at 6%), and the avoidance of fractional-reserve banking.[1] The rules of the Smartbond system also include a guarantee that all money supply growth is distributed as interest to currency holders, and an exchange rate floor (against USD) backed by reserves.[2] The system uses blockchain technology to keep track of units of the Smartbond currency. This allows for its rules to be applied automatically rather than through the institutions of a sovereign state, as a traditional monetary system.[3]

  1. ^ "Smartbond – An Introduction". smartbond.fund. Retrieved 27 May 2016.
  2. ^ "Smartbond – Frequently Asked Questions". smartbond.fund. Retrieved 27 May 2016.
  3. ^ Desan, Christine (2014). Making Money: Coin, Currency and the Coming of Capitalism. Oxford, UK: Oxford University Press. p. 11. ISBN 9780198709572.