Terra (proposed currency)

Not to be confused with Terra (blockchain).
Terra
TRC
ISO 4217
CodeNone
theoretical currency only

Terra (the Trade Reference Currency, TRC) is the name of a proposed "world currency". The concept was revived by Belgian economist and expert on monetary systems Bernard Lietaer in 2001, based on a similar proposal from the 1930s.

The currency is meant to be based on a basket of the nine to twelve most important commodities (according to their importance in worldwide trade). Lietaer opines this would provide a currency that wouldn't suffer from inflation:

"Terra = reference unit defined as standardized basket of key internationally traded commodities & services.

Example: 100 Terra =
                                         1 barrel of oil
                                      + 10 bushels of wheat
                                      + 20 kg of copper
                                        ...
                                      + 1/10 of ounce of gold

NB: any standardizable good or service can be included.
Similar stability to gold standard, but with basket instead of single commodity (more stable than any one component)...

Terra is Inflation-resistant by definition."[1]

The basic principle emerged from early concepts presented in an article in the French newspaper Le Fédériste on 1 January 1933. The idea to establish a L'Europa – monnaie de la paix (English: Europe - Money of peace), was given birth. The idea was enthusiastically picked up by Lietaer during an educational journey.[citation needed]

See also

References

  1. ^ Lietaer, Bernard. "The Future of Money New Ways to Create Wealth, Work and a Wiser World" (PPT).

Bibliography

Further reading