ARCEU – The central bank of Koss, Royale, has proposed through Proposal of Law 07 – monetary reforms to the currency of the State. Under the new law, the Austral Franc becomes backed by a Royale Reserve to a fixed rate.
Today, the Austral Franc (AUF) was issued within the MicroBank system by the Royale and the Office of the Anax. The law proposal seeks to invalidate that AUF issued. The new Austral Franc will be pegged to Litecoin, a decentralized p2p digital currency which is akin to the digital silver. The fixed rate will be 1:0.012.
The PP07 establishes a Royale Reserve which backs the Austral Franc through the storage of Litecoin. The Royale has guaranteed the security of these deposits by placing them in cold wallets. The goal is to develop an Austral Franc token within 3 years. This token would be used as a store wealth and used for tax benefits.
The Secretariat of Communication issued the following statement:
In today’s world, it is important to recognize the chaos of the banking system and how fractional reserving, debt and corruptable centralization endagers our financial wellbeing. TO move away from that, the State of Koss hedges itself through the use of cryptocurrencies and precious metals.
The decision to peg the AUF to Litecoin and not the more famous Bitcoin, came down to technical aspects a Royale spokesman explained: “Bitcoin today presents major problems with its fee structure and lack of scalability, Litecoin has proved to have every good feature of Bitcoin, and correct its faults”
The Project of Leie proposed by the Royale has been approved by the Ministry of Commerce and has a 24 hour evaluation period before it is homologated by the Office of the Anax and comes into effect as law.