The money and banking in New Venice is unregulated.  There is no "legal tender", or government-sanctioned currency; all money is provided by private interests, albiet with a 100% commodity backing.  While there is no official name for the money, national custom names the currency of the Republic as "Basic Venitian Ducats", or BVDs.  And while there is no official fixed amount of gold as the underlying asset for all currency, the large and well-regarded banks use a ratio of 1 ounce of gold = 100 BVDs.

 

Questions for this blog entry include: 

Should the government mandate a uniform amount of gold to act as a basis for all currency issued by private interests?

Should the government mandate that all currency be backed solely by gold, or can other commodites, or even fiat money be used?

 

 

Since there are no banking regulations, the practice of "Fractional Reserve Banking" occurs, which contributes to the business cycle that The Republic of New Venice experiences.

Should the government mandate that all banks resort to 100% Reserve Banking?

 

Please put "Money" or "Banking" in the post title, based upon what question you wish to comment.