283: Chapter 283 The Situation Banks Fear Most!

Zhao Fusu's plan was quite simple: he intended to export massive amounts of silver to external powers, throwing the currency systems of those silver-standard foreign entities into chaos while he reaped enormous profits from it.

As for Great Qin, it did not use silver as currency.

Aside from government departments performing macro-adjustments on the currency, there would also be exchange rate controls for foreign currency inflows.

Great Qin's future currency would be named the Huaxia Coin.

The monetary system would be based primarily on paper notes, though the banliang coins currently in circulation would not cease being minted.

Paper notes and banliang coins would circulate in parallel.

This is similar to modern society, where coins still circulate alongside paper bills.

The banliang coin would become Great Qin's version of a hard coin, continuing its circulation within the empire.

After the First Emperor unified the six kingdoms, he abolished their currencies, allowing only the use of the banliang coin.

However, the mountains are high and the emperor is far away; in the Six Lands, the currencies of the six kingdoms were actually still in use.

Yet, the banliang coin had been promoted in Great Qin for ten years and still maintained a certain level of ownership.

In the forty-six commanderies of Great Qin, many commoners possessed banliang coins.

One could say the banliang coin already had a foundation in Great Qin; as long as its promotion continued, it would spread further and become a currency the people were accustomed to.

This was also a major reason why Zhao Fusu did not want to abolish the banliang coin.

With Great Qin's population of over thirty million gradually becoming used to the banliang coin, a sudden ban could easily trigger resistance from the people, which would be detrimental to stability.

Compared to banliang coins, paper notes were also easily damaged and far less durable.

Therefore, paper notes were primarily used for high denominations to prevent commoners from having to carry large quantities of banliang coins when traveling.

The amount of currency issued in the future would be determined by statistics on how much Great Qin's GDP grew compared to the previous year.

The Great Qin Empire Bank has now been developing for three years.

In addition to opening many branches in the Qin Region, branches were also gradually opened in the Six Lands.

Depositors only needed to carry a bank card to withdraw money from any Great Qin Empire Bank branch across the country.

Money could be withdrawn from any transaction as long as a certain processing fee was paid.

This was a godsend for businesspeople.

The cost for bandits wishing to rob merchants along the way was significantly increased.

For merchants, this was definitely a positive development.

However, they also had to be given a sufficient sense of security; if they deposited money and couldn't withdraw it, no one would dare keep their funds in the Great Qin Empire Bank.

Wool Sweaters and milk were very popular in Great Qin, bringing in a vast amount of cash for Zhao Fusu.

Zhao Fusu kept this cash in the Great Qin Empire Bank, ensuring the bank had enough liquidity so that the commoners who deposited their money could withdraw it.

He knew well that what a bank feared most was a bank run.

When a bank faces a large number of depositors wanting to withdraw money in a short period, its cash flow encounters problems—even if the bank isn't actually out of money, but rather has its funds tied up elsewhere and unable to be recalled.

Given enough time, they could pay the money back.

But for depositors, they only want to withdraw their savings as quickly as possible.

Once they cannot withdraw their money, they will inevitably cause a disturbance, leading to serious social issues.

Therefore, Zhao Fusu did not exhaust the cash in the Great Qin Empire Bank; he kept sufficient reserves to prevent a bank run.

Well-versed in history, Zhao Fusu knew that Hu Xueyan's bank collapsed because it suffered a bank run. Funds from other locations couldn't be recalled in time, and the bank was overwhelmed by depositors, leading to his bankruptcy.

Having deeply reflected on Hu Xueyan's lesson, Zhao Fusu would never allow such a massive hidden danger to remain.

If a crisis were to explode one day, it would definitely not be a good thing for him!

Now, with Zhao Fusu intentionally developing industry and commerce, more and more people were becoming merchants.

Because the Great Qin Empire Bank had established a certain level of credibility in the Six Lands,

merchants traveling far and wide found it convenient for business to deposit their money in the bank, which also secured and stabilized the Great Qin Empire Bank's cash flow.

While Zhao Fusu intended to stabilize Great Qin's monetary system, he was also thinking about launching an economic war.

His next target for conquest was the Thirty-Six Kingdoms of the Western Regions; once he secured the Iwami Ginzan Silver Mine, he could use the silver mined there to wage an economic war against them.