Agriculture Escape: Ultimate Boss Has A Space Pocket! (3)

Chapter 516: The Popularization of Banknotes

Translator: Atlas Studios Editor: Atlas Studios

Zhang Zhang carefully observed Bai Wutong's expression and talked about the advantages of implementing the circulation of banknotes. "If we replace copper coins and silver pieces with banknotes, everyone's pockets won't be so heavy when they go out for transactions. Every time they come to the bank to deposit money, there will be less manual labor involved. It's also convenient for everyone to make transactions in private, and the banking industry can increase its efficiency."

Bai Wutong suddenly smiled. "I think this plan is feasible, but you have to budget well. The amount of banknotes issued cannot cause inflation in the market. If there is inevitable inflation in the market, you need to react quickly enough and make timely market adjustments. At the same time, you have to ensure that fake currencies don't appear. You have to increase the use of banknotes by the commoners and control the exchange rate of gold and silver prices."

As the bank president, Zhang Zhang already had a lot of understanding of inflation and the market economy.

Bai Wutong's proposal and request still surprised him.

The Great Empress' knowledge was too impressive.

Zhang Zhang hurriedly said, "I accept the order."

Zhang Zhang was only the bank president. The issuance of banknotes still had to go through a multi-sectoral consultation to formulate the amount of banknotes, the style of issuance, and other complicated work. After Sheng Huaixuan took a look at the proposal and the specific regulations, they would be handed over to Bai Wutong for review.

By the time the banknotes were implemented and circulated, it was already three months later.

When the commoners heard that copper coins and silver pieces were to be recycled, they were all very confused. Until the government announced the banknotes of different denominations in the entire Carefree Kingdom, they still found it unbelievable.

This was a very important matter. The issuance of currency meant a change in the way the transactions were conducted.

All the merchants were extremely concerned. They ran to the bank and asked, "If we don't exchange the copper coins and gold on hand now, will we not be able to use them in the future and buy property in Carefree City?"

This question was the most urgent for everyone at the moment.

Li Nian held the instruction manual and explained to everyone in detail, "The issuance of banknotes is to make life more convenient for everyone. After a three-month exchange period, copper coins and silver pieces can no longer be used in circulation. However, gold is an exception. Even after the three-month exchange period, gold can still be exchanged for banknotes in the future. Gold will also become the only hard currency."

"If you don't want to exchange your money for banknotes, you can also exchange it for gold. However, gold has a high value and it's very inconvenient to use. 1 suggest that everyone exchange it for banknotes and deposit it in the bank to increase interest."

When everyone heard this, they asked again, "Then can't the interest on gold increase?"

Li Nian explained, "As I said just now, gold will become a hard currency to exchange for banknotes. The exchange rate will adjust according to the changes in the market. This also means that gold itself will have a risk of lower value and there's uncertainty. The bank can help store the gold, but they won't give any interest."

The commoners were confused but they understood the last sentence. If their money was exchanged for gold, there was no interest when depositing it in the bank.