Genshin Impact: A Red Teyvat Life Starting from Zero

Traditional Metal Currency, the Monetary Standard, and Credit Money

Perhaps the failure of the "rich" is not due to unrealistic fantasies, but rather because they are too far ahead of their time?

Chapter 42: Even a skilled cook can't cook without rice (revised, combined into one 4000-word chapter)

Ningguang flipped through the contents of the document.

The so-called Mo-based system actually corresponds exactly to her idea.

The government will use the morra as its base currency, pegging it to the morra, and issuing paper money to replace the morra in circulation.

If someone has deposited a large amount of Mora in Sumeru or Mondstadt, they can come to Liyue empty-handed, exchange it at the Northern Bank in Liyue, and then go on a shopping spree.

So where does Mora come from in Liyue's Northern Bank, a commercial capital that can be exchanged by everyone in Teyvat?

Trade is not always perfectly equal; it's not a matter of how much Mora flows from Liyue to Sumeru and how much flows back to Sumeru.

This is especially true for the seven kingdoms under the Seven Gods system.

There isn't even a concept like a trade deficit here.

Taking Sumeru and Liyue as examples, Sumeru imports a large amount of minerals from Liyue every year, while the trade between the Faculty of Arts and Liyue is mainly based on food, and the food market is shared with Mondstadt.

The Church was operating at a loss during this process.

This gap was filled by technology and food trade with Fontaine.

But what about Fontainebleau is another matter entirely.

Moreover, Mora, as an alchemical material, is constantly being consumed, and the consumption varies in different regions.

This requires human intervention to bridge the gap.

This complex system was previously managed independently by individual caravans from different countries.

It included not only ordinary trade and the exchange of goods, but also compensation for the Mora consumed for alchemical purposes.

A small number of caravans were dedicated to transporting Mora.

In Teyvat, a place that is not very peaceful, caravan transport requires strength.

Because monsters are everywhere.

The Liyue Thousand Rock Army has done its duty and given its all, but it can only ensure that the official roads within Liyue are not disturbed by monsters in most cases.

It's even more difficult if it's a large-scale transport of Mora.

Because they not only have to face monsters like Hilichurls, but also many people with ill intentions.

This results in extremely high security costs during transportation.

Later, the Northern Bank emerged out of nowhere, backed by the powerful military organization, the Fools.

They were able to complete the security work at extremely low cost, allowing the Mora to circulate freely in the seven countries.

—Except for Inazuma, of course.

In short, the Northern Bank successfully reduced costs and increased efficiency in the transportation of Mora. In this respect, it not only outmaneuvered other caravan banks, but also successfully achieved transnational operations.

Liyue likely lacks the strength to compete with the Northern Bank.

The Thousand Rocks army is not as powerful as the Fools, nor is it spread throughout Teyvat.

Mora, a type of physical metal currency, is always bulky and takes up a lot of space.

Mora is actually valued based on the divine power of Morax contained within it. The so-called 100 million Mora actually refers to "Mora containing 100 million units of divine power".

However, even if ordinary people can sense this divine power, it is difficult to accurately quantify it.

Generally, the denominations are clearly distinguished within the gold and silver vault.

However, there is an upper limit to the amount of divine power that can be contained within a unit mass.

When the required Mora exceeds this limit, the only way to increase the Mora value is through an increase in quality.

To put it bluntly, you need to bring more Mora.

However, this means that requirements are placed on transportation.

This brings us back to square one.

To compete with the Northern Bank, one must first possess the strength of the Fools.

But now the situation has taken a turn for the better.

Paper money.

Its requirements for transportation are greatly reduced, which perfectly aligns with the direction of reducing capital costs and increasing efficiency.

This seems to make it possible to compete with the Northern Bank?

The decline in transportation demand will certainly benefit Northern Bank as well.

But more importantly, transportation costs will drop to a level that Liyue can accept.

For Liyue, this is a qualitative change.

This is a change of course in competition, which indirectly weakens the advantages of Northern Bank.

In the past, Liyue could not accept such high costs, and only the Northern Bank could do so with the help of the Fatui. Liyue had no chance of competing with the Northern Bank.

After issuing paper currency and reducing costs and increasing efficiency, Liyue's costs are still higher than those of the Northern Bank, but not to the point of causing a qualitative change that is unacceptable.

As for the Mora required for alchemy, although the consumption is considerable, in terms of circulation and the amount needed for trade, it is just a drop in the ocean.

In addition, there are other advantages such as freeing up transport capacity after reducing the demand for transportation.

Most importantly, once paper money began to circulate, Liyue's financial system, while still starting from a certain point, was at least on the same track as the Northern Bank.

Ningguang had by this time realized the importance of financial capital.

The most important thing is to be able to regain the initiative in this area and put it back in Liyue's hands.

Liyue still has the [Golden House] in her hand, which is a trump card.

Ningguang believes that if the wealthy were able to create something like a "license" many years ago, they must have been able to see this as well.

The introduction of paper money does indeed bring many benefits, but it has nothing to do with him.

Not only that, it will also indirectly weaken the advantages of the Northern Bank, ultimately benefiting Liyue.

Because the "golden house" is not in the hands of the rich.

The most important aspect of promoting paper money and establishing a mortgagor standard cannot be separated from the "golden house".

The only place in all of Teyvat where Mora can be forged.

This is an advantage that the wealthy do not possess, and it is the source of Liyue's confidence.

As long as the Golden House remains in Liyue's hands, the initiative is in Liyue's hands, and the words of the rich will not carry weight.

No matter how much the rich do, in the end, it will only benefit Liyue.

Therefore, the wealthy made a bold attempt.

Ningguang looked at the last page of the stack of papers.

Credit Money

Ningguang has also learned about fiat currency.

This is the next stage after the Mohist standard.

Strictly speaking, it should be called a credit-based system.

Even for her, relying entirely on national credit issuance, not being linked to Mora, completely abandoning Mora, and breaking the anchor is a very bold move.

Although Ningguang does not intend to use fiat currency directly, she believes that if anyone in Teyvat is capable of implementing fiat currency, it must be Liyue.

Is there any need to doubt the trustworthiness of the people of Liyue?

Liyue is the land of Geo and contracts.

Those who break their promises shall be punished by being eaten by the Rock King, a rule established by the Rock King Emperor.

Everyone in Teyvat knows that while the people of Liyue might try to be clever or nitpick over the terms of a contract, such as the infamous 600-80 Mora incident, once a contract is signed, the people of Liyue will strictly adhere to its requirements.

Not a penny less.

Therefore, only Liyue has sufficient credit for this kind of fiat currency gameplay.

It won't work until winter.

The Fools, that infamous organization, is even worse.

Therefore, the "charter" promoted by the "rich" in Melo Petersburg was probably the earliest credit currency in all of Tewat, attempting to bypass the Mora standard, the Golden House, and the restrictions of Mora. However, it was completely unworkable outside of Melo Petersburg.

Even with the Northern Bank as a foundation, it's not enough.

Credit money, credit money, must be backed by credit.

Where does the faith of the fools come from?

Within Mero Petersburg, the "Rich Man" established order by relying on his formidable power. In this closed environment of Mero Petersburg, his own strength and absolute status served as the guarantee of the "Permit".

He said the license was worth as much as it could be.

Therefore, the [license] can circulate within Melo Petersburg and be used for transactions.

But it won't work outside of Melo Petersburg.

It is likely that the "rich people" discovered this problem during the experiment in Melo Petersburg, so they did not promote it further after leaving Melo Petersburg.

The rich man is like a skilled cook without rice; his ability to perform is limited by the platform.

The golden house is not in his own hands, and the foolish followers he belongs to have no credibility whatsoever.

Both roads are blocked.

Perhaps this is why the wealthy remain silent about the results of the "franchise" program.

It's even possible that he's deliberately concealing this to prevent Liyue from discovering the feasibility of paper currency, thereby weakening the Northern Bank's advantage.