Private Currencies in Your Nation

[Allanea]

So, for those of us who practice Free Banking or private currencies in your nation, post about private and semi-private currencies here!

For those who don't know what this is about, here's some information about Free Banking, Private Currencies and Cryptocurrencies


Ever after the regaining of Allanean independence post One-Day War, the United States of Allanea has practiced a free banking system – a system noted for the absence of a central bank or a Federal mint, and the existence of multiple private currencies, capable of competing in a near-free market.

As such, multiple currencies compete freely within the Allanean market. This is a guide to these currencies, and to the principle banks of Allanea.

The Menelmacari Credit is the national currency of Menelmacar. While Allanea does not maintain a national currency of any kind, nor mandate the use of any currency, the federal government of Allanea makes the M€ it’s official calculation currency – though taxes are collected in thousands of different forms, all billing and budget information is published in Menelmacari Credits. Further, the Allanean government uses the Credit for payment wherever possible.

Value: $2.50
Commonality: 10.4% of money supply

Other Foreign Currencies are naturally used for payment as well. Depending on the location, the Questarian Pound, the Havenic Pound, the Praetonian Crown are all used, as well as some more obscure currencies. However, the Menelmacari Credit remains the single most valuable currency per se.

Value: Varies
Commonality: 15.4% of money supply

Gold is extremely popular in Allanea – inasmuch as we are discussing gold used as currency, rather then a variety of currencies backed by gold. Multiple companies provide gold minted, normally electronically tagged to prevent counterfeiting, and a variety of electronic trade practices involving remotely-traded gold bullion. The Mulligan Bank’s Mulligan Dollar has become, in essence, a form of such currency after the Pilonese Banking Crisis. The reason gold and other metals are popular is the perceived anonymity they provide.

Value: $743.70 per ounce
Commonality: 10% of the money supply

Silver, Platinum and Other Metals are also used in the same way is gold, comprising approximately 11% of the money supply between them.

The presence of these currencies does not however mean that no fiat currencies exist in Allanea. There are many fiat currencies as well – they’re just printed by large-scale private corporations. The most famous of those are the Nivensky Dollar and the Bunny Dollar. The first is a currency often used by Allanean Arms branches to pay their employees. It started out as a glorified gift certificate for employees for use at company-owned shops, but soon enough it became apparent that Allanean Arms shops provide practically everything – guns, cars,, food, clothing – and it became accepted in circles outside Allanean Arms shops as well. It is especially prominent on Roanoke Island and other centers of Allanean industry. Roughly 9% of Allanean currency are Nivensky Dollars, and another 3% are caught up by Bunny Dollars – a similar currency begotten by the multinational Cute Bunny Burger, Corporation. Both currencies are officially pegged to the Universal Standard Dollar.

Value: $1
Commonality: 12% of the money supply

Another currency of note is the Nomo, a gold-backed paper currency printed by the Hashi National Bank, Inc. While the Hash is, of course, not a nation, the HNB has evolved from a protest movement of Hashi and Mgweni opposed to the fledgling nation’s conquest by Allanean forces. At the time, they continued to use original Hashi currency despite the lack of a Hashi government to back it, as a sign of protest – the Allaneans had bombed the central government offices into oblivion. Eventually, the HNB began to create gold-backed currency imitating old Hashi currency in design and it was a great hit. After the Allanean Civil War the HNB has gradually divorced itself from separatist movements. Today, two ethnic whites actually sit on the Board of Directors.

Value: $1.54
Commonality: 3.6% of the money supply

FreeCoin: FreeCoin is a cryptocurrency with a set rate of money-supply expansion. It is anonymous, with the accounts tracked only on the block-chain principle. Freecoin is generated by a decentralized coinage system, running simultaneously on board of billions of personal computers. It can be traded for goods and services in most stores. It covers more than 15% of Allanea’s money supply.

The Agridollar is a unique currency, and is listed here mostly for it’s strange backing. The Agridollar is backed by electronically-traded sheep – literally. In common useage is the Agridollar is referred to as One Sheep, and it’s subdivisions are the One DecaSheep and One HecaSheep

Value: 1 Sheep = $563
Commonality: 1.5%

Other strange and perverse currencies exist, taking up the rest of the money supply.

[New Dornalia]

OOC: A repost for my Factbook entry on Dornie Currency, with some tweaks.

IC:

The financial history of the Colonial Republic is one marked by, to use a succinct word, "schizophrenia," in the words of one economist. Despite operating amazingly like a modern mixed capitalist economy like every other nation in the Universe, it for a long time operated with surprisingly lax regulations on Currency. Even now, after the Currency Rationalization Act reforms issued by the Haggar Administration which settled things down a bit, Dornie Currency can be a bit more colorful than its neighbors. Although there's a bit more regulation than would normally be found in other places, given the subject matter, we find this listing will qualify.

The Dornalian Dollar

The Dornalian Dollar is the primary de jure currency of the Colonial Republic, per the Currency Rationalization Act issued by the Haggar Administration. It replaces the previously used "Cubit" from the era when the CRE was once part of the United Colonies of Kobol, an ill-fated merger between the territories controlled by the then-Workers State and the Twelve Colonies (the latter now currently enrolled as part of the Starways Congress). The Dornalian Dollar is issued by the Dornalian Central Bank, and functions a lot like the modern US Dollar (although exchange rates indicate the Dornie Dollar is a bit stronger than the US Dollar).

It is legal tender, and will be accepted as such in New Dornalia, be it in paper form or digital form--or even in the form of precious metals such as gold-pressed latinum bars or silver. The latter is especially true in frontier regions and foreign exchange, but even big cities see people who will do payments for business in metals. Gold, silver, platinum, gold pressed latinum--they'll take it. Best to get your metals measured by an assayer first--it's the law, and most Dornies don't take kindly to potential swindles anywho. Coins and bars are common, and gold coins are not uncommon--there's a high likelihood a Dornalian traveling abroad will have some krugerrands, gold sovereigns, or double eagle coins.

The Dornie Dollar is issued by the Central Bank of New Dornalia, which despite its name actually is closer in makeup to the US Federal Reserve than an actual bank. Told you there was a bit more regulation than you'd find in other spots!

But, its never that simple, when you deal with Dornies.

"Secondary Currencies"

In a typically Dornie scheme of organization, the Currency Rationalization Act, much like its predecessor the National Economic Recovery Act, also recognizes several "Secondary Currencies." The CRA names several of these Secondary Currencies, and indicates they can be used in some limited situations as legal tender (e.g. conduct of international trade, when no Dornie Dollars are available, etc.), a much more restrictive provision than the original NERA.

In reality, although not as bad as when the National Economic Recovery Act was in force, many Dornies (in their typically rebellious spirit) often use the Secondary Currencies to conduct business regardless of the situation. This has naturally lead to attempts to curb their excessive use domestically, with varying degrees of success. Additionally, some NERA approved Secondary Currencies were officially disavowed and rendered unusuable by the CRA.

US Dollar

Since the beginnings of the Workers State and into the CRE era, the US Dollar was retained as a oft-accepted method of exchange and payment, which was particularly handy during the Dornalian Civil War and its aftermath, where a shortage of "cubits" meant that the humble greenback had to do for many Dornalians as the only way to pay and get paid. Out of a sense of gratitude perhaps, it remains a recognized Secondary Currency. Which means OOCly, you're perfectly free to use US Dollars, NSers, when visiting the CRE or doing business with it.

Either Universal Standard or United States depending on whichever NSer you ask today, the USD is used widely in foreign exchange and informal dealings (of all types of legality). US Dollars are available at Dornie banks--exchange rates are generally in favor of the Dornie Dollar as mentioned before. They are also seen on the frontier regions of the Republic, as well as places which do a lot of trade with foreign nations.

US Dollars in the CRE circulate in the form of digital currency as well as paper notes in all current US Federal Reserve denominations; the former would seem to be more prevalent as paper is inherently prone to degrading....but this is Nationstates, so we have plenty of paper US Dollars because reasons. Note that the aforementioned use of precious metals in Dornie Dollar transactions also works for US Dollar trade.

Spacebucks

A recently introduced currency for use among members of the Dornalian-supported Coalition for Outer Rim Development and Security, based in Bakura and several sectors in the Outer Rim near Wild Space. Essentially, it was created as a substitute currency to replace the credit, which had undergone severe currency shock because of the Chaos Invasion. The Spacebuck is pegged to the Dornalian Dollar, and is available in all major forms. As a founding member of CORDS, the CRE could technically take the currency domestically, but amendments to the CRA impose some hurdles on using it outside of the SWG. It's basically like say, how the Hong Kong Dollar operated vis-a-vis the British Pound.

SWG/Skyriver Galaxy Credits

The SWG's equivalent to the US Dollar, the Credit for many years circulated in the Outer Rim and even in the Insular County of Bakura, a Dornalian possession with status equivalent to Puerto Rico in RL. The recent Chaos Invasion caused it to lose significant value, causing CORDS to issue the Spacebuck instead. However, the Spacebuck has not totally displaced the Credit and in fact coexists with it, as the Credit facilitates trade with other SWG regions.

For their part, the Dornies can use the Credit; the Currency Rationalization Act allows for the Credit to be used in Dornalian possessions in the region, and "where appropriate," other parts of the CRE. CORDS meanwhile, allows for the use of the Credit among the rest of its members also along with the Spacebuck.

Menelmacari Credits

The currency of Menelmacar, which has become a popular reserve currency due to its wide usage and strength. TBC

Just Plain Bizarre

Finally, there are some currencies which are not sanctioned by the Act but are still widely used.

Axis Gold

A collective term for a particular kind of precious metal-based currency, this deserves special mention as it has attained almost memetic status among Dornies--as well as some foreigners like the SWC--as one of many "offbeat things Dornies do."

Essentially, Dornies put an almost superstitious value upon gold bullion stolen, hoarded, or made by the Nazis in WWII, or their allies the Japanese. Additionally, gold bullion once owned by the notorious terrorist-cum-Mahdist general Edwina Sherdvanadze has attained a similar status (mostly among the Hajarran minority group), as has precious metal currency made and/or stolen by the Mahdist movement, from the Dornalian Civil War.

As such, the Dornies will accept even minute amounts of precious metals that can be positively sourced to these groups for high-value items. Likely this is due to notoriety, or the fact its like pirate gold, but it's okay to steal it since you're only robbing from Nazis after all.

It's notoriety (and in this modern era, scarcity) makes it a target for fakes--forgers often try to mimic real stampings, serial numbers, or worst of all add rather insulting fillers such as mercury to mimic chemical composition of real Axis Gold. As such, specialized security methods such as CRA-mandated Fabrication Rights Management Tags as well as RFID tags and industry certificates of authenticity governed by Section 90 of the Currency Rationalization Act are used to identify genuine articles.

Additionally, the malevolent history behind the gold traded limits its use. Namely, under the CRA, Axis Gold itself is no longer counted as a seperate currency, but rather a highly valued form of Dornie Dollar (with a complicated formula to calculate its value based on gold price, and other factors), somewhat diminishing its luster among commodities traders. Also, the controversial history behind many artifacts often ensures certain Dornalian groups won't use or accept it (e.g. the obvious refusal of Dornalian Jews to use or accept gold positively identified as Nazi Gold).

Note that this designation extends to other types of "infamous" gold hoards. This includes the gold Stalin took during the Spanish Civil War, for example.

Guns and Ammo

Barter economies using firearms and ammunition have been documented on the frontiers, particularly in New Hokkaido with its clannish Afrikaner Elven population. Due to the gun-centered nature of Dornalian society, this is not unexpected, although this doesn't happen in more urbanized areas due to better access to jobs and banks.

In particular, ammo, firearms, and body armor, and even explosives are traded for vital necessities on the frontier, as well as things people would buy with disposable income (sex, drugs, video games, other fun things.) Explosive ammo is highly prized for its killing power, and Kalashnikovs are treated as one would treat a dollar bill. This also extends to energy weapons from various sci-fi franchises, and even vehicles such as suits of Power Armor.

[Nortainland]

There is one official currency in use in Nortainland: the Nortan Pound. However, this legally is only legal tender everywhere excepting the capital city, Cadell-proper-upon-Nort. There, circulating for centuries by letters patent, there exists the Wetch. As of to-day, one wetch is approximately worth £13.9.3, although this fluctuates as a real currency. It is, however, may only have a six shilling variance in either way before it is revalued by the Lord Mayor of Cadell. The Nortan Pound is never used in the capital, but the wetch is usually accepted in most establishments outside Cadell-proper-upon-Nort.

Certain banks are allowed to issue their own banknotes, though not legal tender, as the currency of the Nortan Pound is backed by gold. The 'official' currency is distributed by the King's Bank of Cadell, which also issues the wetch.

[Republic of Mezoamerican States]

There is one official currency in use in Nortainland: the Nortan Pound. However, this legally is only legal tender everywhere excepting the capital city, Cadell-proper-upon-Nort. There, circulating for centuries by letters patent, there exists the Wetch. As of to-day, one wetch is approximately worth £13.9.3, although this fluctuates as a real currency. It is, however, may only have a six shilling variance in either way before it is revalued by the Lord Mayor of Cadell. The Nortan Pound is never used in the capital, but the wetch is usually accepted in most establishments outside Cadell-proper-upon-Nort.

Certain banks are allowed to issue their own banknotes, though not legal tender, as the currency of the Nortan Pound is backed by gold. The 'official' currency is distributed by the King's Bank of Cadell, which also issues the wetch.

We use a barter system, with a common commodity as a reference. Originally, we used goats, with large financial institutions keeping large herds and issuing chits valued at a certain number of goats or a fraction of a goat. This proved unweildly, and, to be perfectly honest, goats are smelly and irritating. So we switched to corn, but it did not keep long enough. Now we use molybdenum. A ngwee is a coin made from 1/13 of an ounce of molybdenum.

As to other currencies, if you can find someone who'll accept it, you can spend it. However, for tax purposes, the RMS department of revenue tends to assess valuation of alternate currencies arbitrarily, so accept alternate coin at your own risk.

[Verdiga]

We accept Verdiger Dollars (VD$), Japanese Yen (JP¥) in some stores, US Dollars or NS Dollars (US$ or NS$) in some other stores and the Euro (€) in a few others. However, in addition to this, there ARE many stores that DO accept cryptocurrency, most notably the Bitcoin (฿), though others, such as the Litecoin (Ł), the Namecoin (ℕ) and the Dogecoin (Ð) are accepted in some other stores. For instance, a Chie Mihara outlet in Björkstad supports VD$, JP¥, US$/NS$ and ฿.

As for private currencies, some companies and settlements produce them, though not legal tender, except for that entity. For instance, Skywall Amusement Park introduces Skybucks (SK$) as their personal currency. And The Uncle Happy defector town of New Happyville (formerly a ghost town called Gläsyår) plans to introduce the new Happybuck (HP$) as the town currency by 2017.

[Auzkhia]

Private currencies are not accepted as legal tender, the Auzkhian Crown (Krone, Korona, Koruna, Corona, etc) is the sole currency in the realm, but overseas produce their own currency, but they also accept the Krone.

The most recent example of 'private' currency was the Wörgl experiment, where compensation bills circulated in a town stricken with unemployment during the 1930's economic crisis. The Imperial and Royal Bank shut them down.

[Skyviolia]

The Skyvan (₴) is the national legal tender of Skyviolia. Only the Government is required to use it however so citizens can use other currencies such as the USD or Euro, but doing this is unpopular because its a huge tax nightmare. Skyviolia itself does not have any private currency.

[British West Zuzunia]

Anyone who wants may breed their own chickens! This is possible because chickens have real value, unlike your so-called "precious" metals. Can you eat a gold coin? Does a gold coin lay eggs? If you put several gold coins together, do they hatch more gold coins? Does a gold coin even squawk if a foul and stupid East Zuzunian enters your yard to steal it or to assail you? No!

Gold coins are only another kind of fiat money. They have fake value because they are rare. If you make more, they are worth less. But a chicken is money that drives a real Zuzu, not a filthy foreign Fiat! You can make all you want, and they still have the real value of a chicken dinner.

[Allanea]

OOC: Gold is used in electronics.

[McCatsonia]

All currency and banks are private in McCatsonia, as there is no central banking or government.

[Gandoor]

The only official currency in Gandoor is the gdyn (GDY), all locations in Gandoor that involve monetary transactions are required by law to accept the gdyn. However, other currencies, including cryptocurrencies and private currencies are legal, but their usage is generally frowned upon by society and it's incredibly rare to find places that accept them. (Most locations that do are online-only marketplaces)

[Chinese Peoples]

China obeyed the silver standard up to 1981, and each dollar was legally equivalent to one troy ounce of pure silver; this had some pretty bad consequences when other countries attacked the international silver trade, so we switched to fiat currencies in 1981.

[TURTLESHROOM II]

The Constitution of TurtleShroom explicitly forbids a central bank from existing in the country, and it allows the state to break any bank that de facto or de jure assumes the powers of a central bank. This means that TurtleShroom has free banking, but no bank really has any incentive to issue anything besides the nationally recognized, state-produced one.

TurtleShroom does issue a nationwide legal tender, in the form of the iron Skillet. Skillets are, in essence, frying pans. They are not as large or heavy as real fryng pans, but they are still cumbersome to carry, so most TurtleShroomers write checks instead of lugging around heavy cash, or they use private currencies.
The Skillet is pegged to the USA Dollar. It currently trades at $0.25 USD = 1 TS Skillet.
The money supply of Skillets is tied directly to the ability of TurtleShroom to import iron for its production. This is by design.

Private currencies in TurtleShroom are legal and widely used, but the law requires them to be lawfully exchanged for Skillets outside the jurisdiction of those who issued them.

Most private currencies take the form of Scrip, which are issued by truck system company towns to be used at the company store. These rarely have a pegged or calculable value because of their very localized usage. Scrip from different companies look different.

Recently, with the TurtleShroomer economy and society falling apart because of the prolonged labor riots, Scrips have become more widely used outside of company stores. Scrips that become legal tender elsewhere have a rate set by the issuing company and can be traded for Skillets, which the company uses for its own construction and for loaning to gain interest. In essence, this turns company stores participating in this into company banks.

The Scrip with the largest and widest circulation is the Bessford Buck, issued by the Mighty B Oil Company. Its value is tied directly to Mighty B's oil supply. Outside of the company store, one half of one barrel of oil is worth one Bessford Buck, making the BB worth $3.50 USD at this time. Oil is cheap in TurtleShroom because of low demand and astronomical supply; TurtleShroom exports a vast majority of its oil.

The law requires all institutions to accept Skillets, but any private or personal entity can accept or refuse any Scrip if they so announce it in writing. Most institutions wil also accept gold or bartering. In TurtleShroom, you can legally enter a big box store with a cow (or cows) and walk out with an appliance if the manager accepts it. Many stores train their cashiers to use gold scales and to discern fools' gold from the real deal to encourage gold's use in commerce. TurtleShroom tried to forbid gold as legal tender generations ago, but quickly pulled back when the ban was ignored entirely.

[Vault 93]

Though American pre-War money is the official currency of the Vault, Nuka-Cola bottle-caps as well as traditional bartering are frequently used.

[Chadtonia]

The official currency of Chadtonia is the Chado (which is roughly equivalent to 2.004% of the RL U.S. Dollar (although due to government subsidized deflation in the housing market may be rated as high as 78% of the RL U.S. Dollar for specific sustainable commodities, especially in regards to housing.

Private currency in the Chadtonian nation and culture is difficult to explain simply. Most private currency is long held tradition. Many of Chadtonia's tribes still make and dstribute tribal currency. Tribal currency is neither endorsed nor condemned by the Federal Council. Tribal currency may be accepted by some tribes, but not others. Tribal currency is not accepted in any government agency. Differen t tribes make their own currency and have their own rules and regulations and systems regarding the value.

The Federal Council of Chadtonia consider tribal currency or any other form of private currencyto have no value. Although certain tribes have tribal banks, official Federal Council approved banks will not accept any private currency, tribal or otherwise.

[Henen]

The Imperial Credit is legal tender on Henen, but numerous local and regional currencies also exist with varying statuses and degrees of convertibility.