So you are kind of one removed from gold backing or saying that there is a definite solid commodity money behind the paper money and the credit money that we are all using over here. Kind of one removed from it. After Hiroshima, Tokyo wondered when the next atom bomb would fall. They did not wonder long.
So the Bank of England has the responsibility of making sure there's enough of this money in the system. The requirements for banks to hold a specific amount of reserves has changed many times since 1947. At that time, banks needed to hold a minimum ratio of 32% of reserves, cash, or Treasury Bonds to deposits.
It's fascinating, this emergence of digital currencies, how it's transformed everything, really. Because it just completely unleashed private banks to dominate and create the money system that works for them and works for the people who run private banks.
The other is an investment account, where you put your money in for a certain period of time, and then the bank takes that away and they invest it. What happens when you use these two types of account is that, in the event that a bank fails, the money in the safe accounts is still there, it's not at risk. So you just move all the safe accounts to a bank that is still healthy. Those people who put their money in the investment account, they don't lose everything, but they have to wait for the standard liquidation procedure to find out how much of the assets of the banks will be returned to them.
Central Bank reserve currency. There's also another form of money, which is effectively an electronic version of cash and it's a type of money that the commercial banks use themselves to make payments between each other.
However, this measure is deemed to provide a consistently low figure for inflation. Interestingly, house prices, mortgage repayments and council tax are excluded, yet apps and dating agency fees are included.
We can actually build our own currency systems which work to improve the relationships between people within communities, where people work and share a lot of the economic benefits from the wealth they are creating and they are constantly using that wealth they're creating to build positive relationships with other people within that area.