Definition of Privcurrency

Privcurrency, also known as enterprise currency, is a cryptocurrency issued and accepted autonomously by businesses or individuals, used within a private domain, and characterized by a relatively stable price.

The essence of privcurrency is monetary securities.

The privcurrency mentioned in Hayek’s The Denationalization of Money refers to a type of currency issued by businesses.

Privcurrency also has custody funds.

Issuance Mechanism of Privcurrency

Privcurrency is issued by enterprises that collateralize a certain percentage of Bitgold, which by default is set at 38.2%. This percentage can be modified under special circumstances through a public vote. For more details, refer to the white paper and related papers by Dr.bright.

Further Explanation

Friedrich Hayek, Nobel Laureate, proposed the theory of free-market enterprise-issued money in his 1976 work The Denationalization of Money. Building on this vision and technological advances, Openverse has introduced a new category of currency: privcurrency.

Privcurrency, also known as enterprise currency, is a cryptocurrency issued and accepted independently by enterprises or individuals. It is used within a private domain and typically maintains a relatively stable price. The essence of privcurrency is monetary securities. Many stable-value points circulating within companies and most stablecoins issued by a single entity on the blockchain are considered privcurrencies. The circulation scope of privcurrency is limited by the capacity of the issuing enterprise.

Currently, USDT, USDC, and others are examples of enterprise-issued privcurrencies.

Use Case

To avoid financial risks and reduce the exploitation of weaker entities by stronger ones, Openverse has proposed the Privcurrency Standard, VRC11. Enterprises can collateralize a certain percentage of Bitgold as reserve funds to issue their own privcurrencies within their ecosystem. This collateralization percentage is by default set at 38.2%, and in special cases, it can be modified through a public vote.

Privcurrency offers enterprises the opportunity to become relatively independent economic entities. Furthermore, in order to issue enterprise currency, enterprises are required to pledge Bitgold, which will further increase the value of Bitgold.