Preserving your global purchasing power
- These are quotes from the study “Overcoming the Notion of a Single Reference Currency: A Currency Basket Approach” written by our CEO Helie d’Hautefort and our advisor Giuseppe Ballocchi; published by the CFA Institue Research Foundation
We have argued that a single reference currency is unlikely to serve as a reliable store of value over the long term and thus constitutes a misleading unit of account as well. In extreme cases, it may also fail to function as a medium of exchange for international payments if the family is shut out of the payment system of the country issuing the reference currency.
We all want to preserve our global purchasing power, and GLOBCOIN has designed a solution for that— a proxy for the “World currency”. The GLX is the first currency basket to be launched in our platform, consisting of the national currencies of the 15 largest economies and 5% Gold.
In fact, in addition to gold, central banks and other monetary authorities hold foreign exchange reserves, mostly in US dollars but also in other currencies, such as the euro, pound sterling, and yen (IMF 2012). The weight of a currency in the basket increases or decreases with that currency’s role in the global economy (A more detailed explanation of the index can be found in our Whitepaper). This GLOBCOIN currency basket is being developed in response to investors’ demand for an independent and objective store of global wealth, capable of withstanding currency turmoil and depreciation.
The GLX captures the impacts of geopolitical trends and shifts in economic power toward emerging market countries. It also corrects the bias inherent in the allocation to a typical investment benchmark. By and large, the universe of investable assets is concentrated in developed countries, which over the long term, almost by definition, are likely to grow less than developing countries.
The vision of GLOBCOIN has always been to reinvent solutions to protect our investor’s wealth in a multi-polar world; and more than that, to make these solutions available for everyone. Help us putting the GLX out there: globcoin.io
