Happy Star Wars Day 🌒
If you give it some thought, the web is sort of like the Outer Rim. The currencies have similarities. FIAT currencies in the actual world are like Republic Credits whereas crypto currencies, shortly changing into the forex of the web, are like the Outer Rim currencies. In The Phantom Menace, Watto tells Qui-Gon “Republic credit aren’t any good right here. I want one thing extra actual.”
You could be questioning, was the Outer Rim all the time utilizing various currencies to the Galactic or Imperial Credit? The reply isn’t any, probably not. During the Galactic Republic period, the Galactic credit score was the de facto forex. Before The Phantom Menace, there have been solely a handful of other currencies utilized in the Outer Rim, usually illegally. When the Clone Wars began, the Republic and the Confederacy began taking out loans from the Intergalactic Banking Clan (the equal of Federal Banks in the Star Wars universe). As the struggle raged on, rates of interest grew to 25%. Insane, isn’t it!?
As the struggle prices continued to rise, the Intergalactic Banking Clan (IGBC) started recognizing new currencies, principally in the Confederacy territories. At one level, there have been as many as 22 new currencies per day.
On prime of that, the Galactic Credit used to be based mostly on the worth of aurodium, a uncommon and useful steel very similar to the US Dollar was based mostly on gold. Soon after the Clone Wars began, the Republic ditched the aurodium customary in favor of a credit score line with the IGBC to attempt to maintain the credit score worth secure. Unfortunately, these loans and the excessive rates of interest brought about the Galactic Credit to lose worth and inflation grew uncontrolled. We know this as the Millennium Falcon value someplace round 10,000 Credits however in a while in the Star Wars saga we be taught that the value of gasoline simply to fly the Falcon is 5,000 Credits.
Does any of this sound acquainted? Abandoning a treasured steel customary. Massive spending. An increase in inflation. Tens of recent currencies per day. Sounds lots like the present monetary setting. There appears to be a brand new crypto forex every single day, some go on to be extremely useful whereas others lose worth or are used for very particular functions.
It’s an thrilling time for crypto currencies, particularly as curiosity continues to develop. Who is aware of possibly we’ll see some Star Wars currencies minted? Imagine a Republic Credit or a wupiupi token!
May the pressure be with you,
The Blockchain.com Team