Currency equivalence tokens are digital representations of currency parity values. This is a new innovation in the world of money with benefits of making money function properly across borders by bringing stability to the FX market.
This is what this Parity Crypto project aims to achieve. Historically, the economic value that money represents has been associated with weight, but this system was lost when the gold standard was abandoned in favour of fiat currency.
Fiat currency was originally issued as a unit of account, a medium of exchange and a store of value. It represented the economic value of goods and services that were exchanged for money rather than by barter in trade.
The weight of grain was a standard measure economic value and coins were minted in standard weight. Thus, the value of money was closely associated with weight. Notes were subsequently issued to represent coin holdings.
However, the limitations of using physical objects as money resulted in insurmountable problems that culminated in the abandonment of the gold standard. While this change has its own advantages, money cannot function correctly without a value scale.
This Parity Crypto project aims to issue currency parity tokens on the Stellar blockchain which may be used seemlessly with the Stellar payment system to provide an alternative currency exchange rate to FX market rate.
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Watch this short video to learn more about currency parity value!
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