Bankcoin Reserve innovations can be applied to government by creating a Memorandum of Understanding (MOU).
This MOU would be drawn up and signed by representatives of the country, Bankcoin Reserve and AAA Blockchain Limited.
Terms specific to the country, or entity, would be negotiated and agreed upon. This MOU does not legally bind the parties listed, however, a legally binding agreement would need to be put in place to begin implementing terms included in the MOU. More information can be found on page 37 of the Blockchain Prophecy book.
The Country’s GDP is equivalent to USD 40 billion. A Memorandum of Understanding is created allowing an allocation in Bankcoin Reserve Coin amounting to 10% of GDP for a period of 25 years. Bankcoin Reserve therefore allocates USD 4 billion in Bankcoin digital mining assets or commodities at no cost to the country.
An initial setup fee of 0.01% of the GDP allocation, in this case USD 400,000, goes to Bankcoin Reserve. The Bankcoin Reserve Coin will be minted at 10% and the country’s treasury then monetises the minted coin through its central bank, therefore receiving the proceeds of USD 400 million per annum, debt and interest free.
The central bank mints its Bankcoin Reserve holding of USD 400 million per annum at 10%, giving it a revenue stream of USD 40 million per annum. Bankcoin Reserve Match Policy means that BCR would mint an identical amount and allocate 10% of the minted coin to the country for investment in new jobs and the building of new infrastructure. An additional 10% would be allocated for the importation of goods and services; for example, medical staff and equipment, trade teachers, machinery and so on.
The Bankcoin Reserve has multiple models and is making them available to not just countries, but institutions who are in the business of buying treasury bonds. The International Monetary Fund, World Bank, Asian Development Bank and even the United Nations, could transition to the Bankcoin Reserve model under a license agreement that will enable any or all of them to generate more money and have more control over their funds.