Chapter 30 - An economics class #4
"...Ahem."
"After establishing the BCDK, the Confederation decided that money could no longer be that paper called fiat money, and as we've mentioned before, they established the current cryptocurrency known as KonfedDigmono or KFD for short."
Though he acted as if nothing had happened, the cadets looked on in disbelief. Lundström knew he had gone too far, but he didn't regret it; it wasn't absolutely confidential, it was just that he knew what they had established wasn't really an academy per se, but more like a militarized academy akin to a base.
"Professor..."
Before he could continue, he saw a cadet raise his hand and call out to him.
"Haaa... if it's regarding the economics class, go ahead."
"Why did they decide to go with a cryptocurrency?"
Frowning, Professor Lundström adjusted his suit, not thinking that the students had paid so little attention.
"Haven't you listened to my class so far, cadet?"
"N-no, I didn't mean that, Professor..."
"Then?"
"I mean... even though there's a reconstruction and they're faster, cryptocurrencies don't necessarily have a superior advantage... from what I've read, the first cryptocurrencies were backed by the fiat money of the old powers..."
With a new light in his eyes, Professor Lundström smiled slightly; he hadn't expected this type of question, but now he viewed the cadets in a new light.
These fifteen brats were chosen from the entire educational center for a reason.
"Well, Cadet..."
"Liam, sir."
"Cadet Liam, your question is something that coincided with the experts of the time."
Click
Opening the folder for the current topic again, Lundström selected a slide showing Earth as seen from outer space.
The Professor Lundström, with a didactic tone, responds to Cadet Liam's question while interacting with his laptop:
"Cadet Liam, our decision to use a cryptocurrency like KonfedDigmono instead of fiat money has several fundamental reasons. Fiat money depends on trust in the entity issuing it, something that after a global war, is not easy to secure. Moreover, fiat is tangible, something that doesn't adapt well to our plans for spatial expansion."
Click
"Observe, Cadet."
Professor Lundström projects an image of Earth and the Moon, representing the Confederation's first colonization goals.
"Look, fiat money would require physically transporting coins or bills, which is impractical and costly in space. The KFD allows for instant, secure digital transactions without the need for physical intermediaries. This is crucial for establishing an economy on the Moon."
He gestures towards the projected image, emphasizing the distance between Earth and the Moon.
"Moreover, while fiat money can be inflationary and manipulable, cryptocurrency can be designed to be more stable and resistant to manipulation, especially under our centralized supervision. This ensures that as we expand our presence to the Moon,"
he gestures towards the image of the Moon,
"we can maintain a controlled and transparent economy."
Click
"Let's change the image for a moment."
Now he shows a graph comparing the volatility of traditional cryptocurrencies with the stability of the KFD under the management of the BCDK.
"Of course, we are not ignoring the challenges. Cryptocurrencies can be volatile if not managed well, but the Confederation has designed the KFD to be a stable currency, backed by the economic structure of the Confederation, not by the debts or reserves of the old powers."
He turns to Liam with a look of approval.
"So, Cadet Liam, the cryptocurrency is not just a choice for convenience or speed; it's a strategy to ensure the unification and economic progress of our society, both on Earth and in our future on the Moon."
With an air of smugness, Professor Lundström adjusts his tweed jacket and clears his throat, looking down at the cadets with superiority.
"And so, cadets, do not forget that each step on the Moon is a testament to the greatness of the Confederation's economy, an economy that you are only beginning to understand thanks to my instruction. Class dismissed."
Ring