Receivables in the C2C System
Receivables in the Credit-to-Credit (C2C) Monetary System
In the Credit-to-Credit (C2C) Monetary System, receivables are central to the issuance of money and the stability of the entire financial framework. Receivables refer to the contractual right to receive payment of a monetary sum in the future, usually tied to goods or services provided on credit. They play a key role in backing the issuance of Central Ura and other credit-based monies, ensuring that every unit of money in circulation is directly tied to real economic assets.
Historical Use of Receivables as Assets for Money Issuance
The use of receivables to back the issuance of money dates back thousands of years, with early examples from Mesopotamia and ancient civilizations. In these societies, debts and obligations were recorded as receivables on clay tablets. These recorded obligations were used as a form of currency, reflecting the amount owed by one party to another. This practice evolved, with these obligations serving as trusted instruments of exchange.
In Mesopotamian times, grain and other commodities were frequently used as both money and receivables. For example, a farmer’s future grain production could be recorded as a receivable, which could be traded or used as a medium of exchange for other goods and services. Similarly, in ancient Egypt and Babylon, tax obligations and payments to temples were recorded as receivables, becoming financial instruments that could circulate as money.
By leveraging receivables as collateral, ancient economies were able to expand their money supply and create a stable trading system based on trust in future production and economic output.
The Role of Receivables in the C2C System
1. Foundation of Money Issuance
In the C2C System, money is issued only when backed by real economic assets, and receivables serve as one of the most important forms of these assets. A receivable is a creditor’s right to receive payment from a debtor in the future, representing real economic value. These receivables are leveraged to create Central Ura or other money within the C2C system.
- Example: If a business provides goods or services on credit, the payment it expects to receive from the customer is recorded as a receivable. This receivable can then be used as a backing asset for the issuance of Central Ura.
2. Backed by Economic Activity
Unlike fiat currencies, which can be issued without any direct link to real economic output, the C2C system ensures that all issued money reflects actual economic activity. Since receivables represent money that is owed based on goods or services already provided, they guarantee that the money supply is rooted in productive activity.
3. Reduction of Inflation Risk
By backing money with receivables, the C2C system helps to control inflation. Inflation occurs when there is too much money in circulation without a corresponding increase in economic output. However, since receivables are tied to real economic transactions, the money issued within the C2C system is always linked to actual value, reducing the risk of over-issuance and inflation.
- Safeguard: Receivables ensure that money is not issued without corresponding value, protecting the currency from devaluation.
4. Real-Time Reflection of Economic Health
Receivables provide a real-time indicator of economic activity and the overall health of the economy. The amount of receivables in a business or a nation can give insight into future cash flow, making receivables an essential asset for economic stability. The more receivables present in an economy, the more money can be issued in a safe, inflation-resistant manner.
- Impact: This direct tie between receivables and money supply ensures that the economy is not flooded with excess currency, maintaining balance between money and production.
Receivables as a Trusted Backing Asset
1. Credibility and Stability
Receivables are a credible form of collateral because they represent legally enforceable claims to future payments. This ensures that the money issued against receivables holds real value, fostering trust in the system. Businesses, governments, and individuals using Central Ura can be confident that their currency is backed by tangible assets and will maintain its value.
2. Diversification of Receivables
Receivables can come from a variety of sources, including tax receivables, trade receivables, loan repayments, and other contractual agreements. This diversification helps reduce risk, as the money supply is supported by various streams of economic value across multiple sectors and industries.
- Example: A country’s tax receivables, combined with receivables from private-sector businesses, create a broad foundation for the issuance of Central Ura, diversifying the backing assets and reducing the risk of currency destabilization.
Receivables as a Tool for Debt-Free Growth
1. Debt-Free Money Creation
In the C2C system, money is created not by borrowing (as with debt-based systems) but by using receivables and other assets as backing. This eliminates the need for governments or businesses to take on debt to increase the money supply, promoting fiscal sustainability and economic growth without the burden of interest payments.
2. Empowering Businesses and Governments
By leveraging receivables as an asset, businesses and governments can issue money in a way that reflects their actual economic productivity. This empowers them to engage in economic development, infrastructure projects, and other growth initiatives without relying on external debt or the risks associated with excessive borrowing.
Conclusion: Receivables as the Backbone of the C2C System
Receivables play a pivotal role in the Credit-to-Credit Monetary System, serving as the backbone of the money supply. By ensuring that all money issued is tied to real economic transactions, receivables help create a stable, inflation-resistant currency. They also provide a pathway for debt-free growth, allowing economies to thrive without relying on traditional debt-based financial models. With receivables as a key asset, the C2C system fosters trust, stability, and long-term economic sustainability.
Historically, as seen in Mesopotamia and other ancient economies, receivables have been used to support currency issuance and facilitate trade. The C2C system builds upon this historical foundation, ensuring that modern economies can issue money backed by real economic value, promoting fiscal responsibility and stability in today’s interconnected world.