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Chapter 474: Chapter 386 Actual Issuance (Seeking Subscription!)_1
June 1st.
The entire afternoon.
People from all over the territory lined up with their ID cards to apply for bank cards. Half did so voluntarily and the other half were forced to do so. The voluntary group included ordinary citizens, while the forced group consisted of the territory’s soldiers, workers, traders, and civil servants. Previously, Tang Qing hadn’t considered establishing a bank here, hence he did not use the combined method of having ID cards and bank cards in one.
Even if such a system existed, Tang Qing would not plan to use it. The reason is simple: to clarify the process.
For example, if a combined card was lost, how would it be reissued?
What would you use to prove your identity?
You can’t just rely on appearances.
The household registration management system adopted throughout the territory is similar to that in the domestic regime, with collective household booklets formed by families, then those who are 16 years old can apply for personal ID cards.
If a bank card is lost, it can be reissued with an ID card, and if an ID card is lost, it can be reissued with a household registration booklet.
If everything is combined into one, the loss and reissuance may cause many problems, unless using a more advanced and perfect identification method. However, for such a small place within the territory, if face recognition, DNA, fingerprints all need to be used, it would be too troublesome, especially considering it was only the year 2005. There was no need for such high-end stuff.
It might as well be like in the domestic regime, where an ID card is just an ID card, a card that identifies identity, and other cards, if lost, can be reissued with an ID card. The combination of these, although technically feasible, could potentially cause many business problems.
Unless one day there is a kind of recognition device implanted into humans, which cannot be lost, Tang Qing finally decided to follow the domestic mature model.
At night.
In the Command Room.
This afternoon, Tang Qing took his two cousins to the park for the entire afternoon, and they had a great time. Playing all kinds of games with them repeatedly. Though his mental age was already approaching that of a middle-aged man, it didn’t diminish his playful heart.
As soon as he entered the Command Room, Tang Qing quickly asked, "Tang Yi, how many bank cards were issued today?" He had been waiting all afternoon without paying attention to this matter, just to see if he could be pleasantly surprised.
"Commander, up to now, a total of 15,412 Myanmar Bank cards have been issued. Among them are...." Tang Yi gave a figure that did surprise Tang Qing. Over 15,000, which was a half more than his bottom line. Tang Yi also introduced the make-up of these bank cardholders.
It turned out that the soldiers sent to various villages had issued nearly 4,000 bank cards. While the figure seems small, considering it was in a village setting, typically only the head of each family would exchange various currencies and apply for a card, and many were still observing the situation. Unlike in Li Sheng’s village where basically every family, all descendants of Chinese, had applied for one. As such, over 4,000 was not a small number as it represented 4,000 families.
In addition to the villages, there were also the workers at various construction sites who had lined up and completed their applications. Their numbers surpassed that of the village by a considerable amount, reaching over 6,000. In a village, only one head of a family need apply, but for the workers, as long as they were employed, they were required to apply for a card, which would be used as the card for wage payments. Future wage distribution would also be made via bank transfer, with no cash to be given.
Adding the number of bank cards already processed by all the soldiers, more than 3,000, resulted in the total number of bank cards issued on the first day exceeding 15,000, which basically covered the vast majority of families within the territory.
The remaining growth space was not large.
In Tang Qing’s estimation, throughout the whole territory, even a month later, the number of bank cards issued would just barely reach 20,000. There was no other way. The population within the territory was just over a hundred thousand, translating to less than 20,000 families. The base number was fixed, there was no further breakthrough.
The result of currency recycling was also beyond Tang Qing’s expectation.
Since the conference in the morning, the village heads, though granted the option, hadn’t forced their villagers to exchange for Asia Dollars, but there was no choice for the traders. Ling had declared that they must unconditionally accept the purchasing power of the Asia Dollar and not refuse it. The funds for the construction projects allocated from the top down were also in Asia Dollars, as were taxes. Hence, those traders all obediently went to apply for the cards.
So.
The entire day.
The soldiers had exchanged more than thirty billion Asia Dollars, amounting to exactly 32 billion Asia Dollars, equivalent to 32 billion RMB. While it was only one percent of the 300 billion issuance size from the task, this was already a good start, wasn’t it?
All the exchanged dollars, yens, etc., were confiscated by the Currency Clearing Center and stored in its asset statistics area, like the several tons of gold and silver inside, to serve as a guarantee for the issuance of Asia Dollars and future trade settlements. These funds were available for Tang Qing to use at will.
This is the advantage of credit money.
If it was the past, the United States used gold as the issuing guarantee for the dollar, how much gold there was determined how many dollars could be issued. Anyone holding a dollar could go to the bank to exchange for the corresponding amount of gold, hence the gold in the bank, whether it belonged to the bank or the nation, couldn’t be used freely, as it was already owned, and the owner was anyone who held dollars.
But credit money is different as it’s backed by the nation’s credit and the entire nation’s assets. How much are the nation’s assets? They’re vast, and there’s no need to show you. When you take money to the bank, the nation will not tell you what this money was created with. Therefore, in the era of credit money, the nation can print money to spend, because its assets are vast, and its credit standing is high.
In other words, whoever controls these collaterals can control the collateralized assets.
In his territory.
All of it belongs to Tang Qing, therefore he can freely control the money realized from these assets.
Before obtaining recognition from a country with a GDP exceeding fifty billion US dollars as a foreign exchange reserve, the Asia Dollar can’t be used to buy goods in the mall. This is one of the reasons why Tang Qing wants to find Myanmar Bank, as long as Myanmar agrees to the status of the Asia Dollar, he can directly use Asia Dollar to purchase goods in the mall and also exchange for robots.
All the Asia Dollars exchanged today are backed by the total assets in the territory. The initial total estimated assets of Tang Qing in the territory were 9.556 trillion RMB.
What is that multiplied by three percent?
286.68 billion RMB.
That is to say, the issuance of assets in the territory alone is close to 30 billion Asia Dollars.
Plainly said, Tang Qing can cash out almost 30 billion Asia Dollars to spend; it’s quite cool, plenty, and powerful, but the real situation is: it’s not significantly useful.
What can he do even if these funds are realized? There’s really nowhere to use it. It can only be invested in the territory, because other places do not recognize this currency.
Without international purchasing power, the Asia Dollar is worthless, no matter how much is printed. The currencies of various countries worth more than 3 billion RMB that Tang Qing collected today are the real assets he cashed out which can be used freely and spent entirely.
But Tang Qing doesn’t plan to do this. Damn, these are ’foreign exchange reserves.’ If they’re all spent, his territory will face an impasse in foreign trade settlements. What will everyone do then, stare blankly?
This is nonsense.
Even if Tang Qing wants to vigorously develop the economy in his territory and export high-tech products in the future, where will the raw materials come from? The territory doesn’t have the capacity to supply all industrial raw materials, such as rare earths and other precious metals. You have to buy from outside, especially when the Asia Dollar is not yet accepted by all raw material supplying countries or business organizations, other currencies must be reserved.
Playing alone won’t work.
These ’foreign exchange’ currencies worth more than 3 billion RMB will probably be spent in less than a month, mainly for buying mall equipment and for settling trade with Wangsa, and even later, for purchasing industrial raw materials. He may need to chip in more money. The harvest season is still far away.
Now, only over 3 billion Asia Dollars have been issued. In the next month, adding wages and various construction allocations, if the total actual issuance of currency can exceed 10 billion Asia Dollars, Tang Qing will be pleased.
If Tang Qing wants to issue more Asia Dollars, it’s not impossible. He could double workers’ wages directly, but the immediate result might be a doubling of prices in the territory. Not only would those who previously exchanged Asia Dollars suffer losses, but the expected exchange rate of the Asia Dollar in the currency clearing center might fall to half of the RMB. In that case, he would need to issue 600 billion Asia Dollars to complete the task.
This is just ridiculous.
Therefore, Tang Qing believes that the territory needs to deepen in two directions to increase the issuance of Asia Dollars.
The first direction: as it is now, Tang Qing currently has too much available issuance, over 30 billion. The territory can’t absorb so many Asia Dollars at present, so, to avoid inflation, it’s necessary to increase the supply of goods, create jobs, confiscate foreign currencies and limit circulation, expand the domestic economic scale, tap domestic demand, create demand, and other internal work.
The second direction: is to support major companies within the territory, mainly the high-tech industries under the Myanmar Bank Group, to expand foreign trade, large-scale imports and exports, and even make the Asia Dollar become a regional settlement currency. This is outward work.
Progress needs to be made in both directions.
Otherwise, the actual issuance of the Asia Dollar can’t breakthrough.
Tang Qing is also speechless about this. Suddenly, he began to doubt his actions. Is this starting a bank? It’s like building a small country, considering everything and being cautious about this and that.
But on second thought, he doesn’t have that many complaints.
If, as the system said earlier, he bought a bank step by step then slowly played with deposits, loans, collections, etc. Although it’s simple and can be called a banker, the development potential is limited, and it’s too monotonous. Lending and collecting really doesn’t have much technical content.
Unlike now, he’s laying out an entire industry. This is a significant leap in terms of personal development and vision. The influence gained from future success will also be much more significant.
Not to mention, if the Asia Dollar gets the qualification for ’foreign exchange reserves’ in the future, the assets in the territory will definitely become more and more, and more valuable. At that time, large-scale bank mergers are also possible.
How much cash he can use at that time?
Hundreds of billions?
Even trillions should be achievable.
PS: This is the first Chapter, it was a little difficult to write. Please excuse any mistakes.
