Lawful Money vs. Legal Tender
To truly understand what a game changer the introduction of the Quint token is, it is necessary to understand the difference between Lawful Money and Legal Tender (or Fiat). Here is a good definition of Lawful Money from Investopedia:
“Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts and bank notes.”
There has been an ongoing battle between governments and bankers as to who controls the issuance of a nation’s currency. In most countries today the issuance of money is controlled by Central Banks (“CBs”). As a result, the paper notes and electronic accounting of our money which is awash in our global financial system is fiat money which has no intrinsic value as stated above.
Gold and silver being used as money goes back thousands of years. Gold and silver have intrinsic value (as Investopedia stated above). However, two of the challenges of using gold and silver for payments are the verification process and making accurate change. Verification requires weighing and assaying which are both impractical for every day transactions in today’s digital world. Having an accepted proxy for gold and silver such as Gold Certificates and Silver certificates eliminates those problems. Gold and Silver Notes were used up until the mid-1960’s (Coinage Act of 1965) when Federal Reserve Notes (“FRNs”) became the only legal tender note in the UNITED STATES. So effectively U.S. Citizens and Americans have been without a fully convertible gold or silver backed proxy for lawful money since the 1960’s.
Quintric System – Digitized Lawful Money on the Blockchain
Enter the Quint - The Quintric Corporation is currently issuing the Quint series of “specie-based” tokens on the Bitshares blockchain. There are 5 coins in the series: Quint, QuintS, iQuint, iQuintS and QuintX. The Quint and QuintS are meant to be digital lawful money for the 50 states of America as well as legal tender in the UNITED STATES corporate holdings (District of Columbia, Puerto Rico, Guam, Marianas and U.S. Virgin Islands). The iQuint is an international version of the Quint but with a basket of international gold proof coins. The iQuintS is an international version of the QuintS but with a basket of international silver proof coins. The QuintX is a pool of gold backed fees from transactions of the Quint series on the Bitshares platform.
The Quint is by nature a distributed digital account ledger for individual US Mint Gold proof coins. As such each Quint is created by exchanging fiat (FRN’s) for US Mint Gold proof coins that will be held in one of UPMA’s vaults. The Quint is not an index or a proxy or a symbol of “Lawful Money / Legal Tender” (i.e. official US money). The Quint by its issuance BECOMES lawful money in the 50 states of America and legal tender in the UNITED STATES. An investor in Quint either holds the digital Quint in a wallet (or on an exchange) or takes possession on the gold proof coin that 1000 of them represent. The investor cannot hold both.
How it works – A private individual or corporate person pays fiat money to Quintric for a fixed amount of Quint. For every 1000 Quint that Quintric issues to private individuals or corporate persons, they contract with the U.S. Mint to purchase 1 American Eagle 1 OZ Gold Proof Coin. These coins are then deposited in UPMA’s state of the art depository in Alpine, Utah (this will not be the only depository). The Quint can then be used for the exchange of goods, as a store of value or as payment of debts. If the account holder wishes to hold the physical Gold Eagles outside of the depository, then they can surrender the Quint to Quintric and have the physical Gold Eagles delivered to them. The Quint surrendered is then extinguished by Quintric.
Reducing the U.S. National Debt – Currently the (official but not verified) US National Debt is over $20.8 Trillion. One of the ways that this debt gets paid down is through the issuance of US minted coins. U.S. Code Title 31 Subtitle IV Chapter 51 Subchapter 2 § 5116 (31 U.S.C.A. § 5116(2)) states:
(a) (2) ...Amounts received from the sale of gold shall be deposited by the Secretary in the general fund of the Treasury and shall be used for the sole purpose of reducing the national debt.
Therefore, every time a 1000 Quint is purchased and created, the national debt is reduced by the amount of the gold proof issued.
I have barely scratched the surface of how powerful the Quint series of tokens will become. I will be posting additional information on the Quint shortly detailing the tax implications (lawful money is tax-free), how the Quint will affect the crypto space, threat to fiat money and central banking and a breakdown of the components of the system.
If you would like to take advantage of the current Pre-Sale offering from Quintric, please use this referral code: https://escrow.quintric.com/#/register/forfreedom