A Virtual Currency
This proposal outlines the concept of creating a global virtual currency that would serve as a standard benchmark, NOT a tradable asset.
Nor would it be a version of transactable encrypted currencies.
The primary objective of this currency is to maintain a fixed and stable purchasing power, unaffected by inflation, recessions, or other economic variables. This stability is essential for its function as a REFERENCE STANDARD for key financial indicators such as wage levels, income value, real profits, ‘fair’ hiring salaries, and many other economic and financial transactions and variables.
Definition of the Currency Unit
The core unit of this currency would be defined as the amount of money required to sustain an average individual for one day in a country with an average cost of living. This comprehensive daily budget would encompass all typical needs: food, transportation, housing (rent), and other essential expenses for one person per day.
Proposed Naming
Potential names for this currency could include:
"DAILY," "DAYLY," "DAYL,"
or any other suitable designation.
Methodology for Valuation
A panel of international financial experts together with universities, research centres, etc. would be tasked with proposing the methodology for calculating the real-time value of this currency unit relative to the major existing currencies.
Potential approaches could include:
- Calculation based on the real, current-day cost of living in an average-cost country,
- The arithmetic mean of living costs across several average countries,
- The global average across all countries, or among different defined groups of countries.
OR
- Employing more complex and sophisticated mathematical models based on AI algorithms to be more accurate and better reflect the actual (or near-actual) cost of living for the majority of countries.
The World Central Bank
With the creation of this virtual currency a ‘virtual’ world central bank would be created, to carry out the task of announcing the daily or weekly value of this virtual currency relative to the major currencies.
The bank would be sponsored by the UN.
It would be composed of a senior staff representing the major world central (or federal) banks, e.g., representatives from the G7 or G20 central banks, the international bank, and other experts.
In addition to its main role of announcing the virtual currency value, it could also carry out other tasks such as issuing periodic financial or economic recommendations.
Alternatively:
If the UN wishes to save on salaries, office rent, furniture, etc. it could make the “The World Central Bank" a fully virtual bank, run by AI & hosted digitally on a secure Server or Cloud.
However, this would imply risks such as hacking, or going - one day - out of control.
The Future
If its viability is confirmed, this proposed currency could hold the potential for significant global economic and financial advantages & benefits.