【Fourth Update】

The word "bank" is a Chinese word that is changed from "silver number", which means a place where silver is stored. Pen? Interesting? Pavilion wWw. ｂiquge。 ｉｎfo

In the new year, Gan's Bank officially changed its name to the Imperial Bank of China, and its business will involve money printing, deposits, loans, exchange, savings, etc.

Before 1883, when China was still under the rule of the Manchu Qing Dynasty, Gan's money village had covered all county-level areas in the country, and each of them had a branch of Yan Qian Zhuang, and there were more than 1,600 Yan Qian Zhuang branches in the country.

It's a pity that the Manchu Qing Dynasty suddenly attacked the Yan family, and all the personnel of the Yan family's properties in all parts of the country, including the Yan family's money estate, were evacuated, and the wealth that could not be taken away was buried in a place.

Now that the Chinese Empire has replaced the Manchu Qing Dynasty as the ruler of China, Gan's Qian Zhuang has once again covered all county-level areas in the country, and now it is necessary to call Yan Qian Zhuang the Royal Bank of the Chinese Empire.

In the next step, the Royal Bank will also expand to various towns and cities to ensure that each town has a branch, but this step requires a lot of manpower and force, and the Royal Bank cannot cover every town in a short period of time, so it can only be carried out step by step.

With the right to print money, and as the only bank in the Chinese Empire that covers the whole country, the Royal Bank is very important and irreplaceable for the entire Chinese Empire.

The most important thing in the Royal Bank is the right to print money.

At present, in addition to the four provinces in the Chinese Empire, other provinces still mainly use silver and copper coins.

It's good to say that the use of copper coins has specific specifications, and they are directly paid for when they are used, but once someone buys something, there is no change in their hands, and they can only use silver to pay, one or two silver can be exchanged for more than a thousand copper coins, and the weight of a copper coin is 5.5 grams, and a thousand copper coins weigh five kilograms, so many copper coins, how to take it is troublesome.

The silver is even more speechless, because there is no clear specification of the silver, when it is used, it needs to be weighed now, which is so troublesome, when the two of them trade, it takes a lot of time to weigh the silver.

There is also gold in China, but it is relatively small, so gold is not used as a trading currency, but is used to make jewelry and other objects.

Silver and copper coins are so troublesome to use, if you trade large quantities of precious goods, the amount of silver that needs to be traded will be extremely large, and transporting silver is a laborious task, far less convenient than paper money.

Whether it is gold, silver, copper coins, or banknotes, they are actually a type of currency, and currency itself has no value, it is just a universal means of exchange, and a country's government can choose what can be used as currency.

In the era before the Chinese Empire, the world was dominated by Caucasian countries, which were dominated by the silver standard, that is, silver as a trading currency.

However, when the Caucasian countries abolished the silver standard and switched to the gold standard, this change caused the price of silver to plummet and the price of gold to rise.

However, the Manchu Dynasty at that time still used the silver standard system, and the purchasing power of silver in China was not reduced, and soon the Caucasians imported a large amount of silver in their hands that was rapidly decreasing in value, and used silver to buy gold and other goods that maintained their value.

A large amount of silver poured into the land of China, resulting in the depreciation of silver in the land of China, but China's population is too large, and once the silver is dispersed, it seems that the depreciation of silver is not too fast, but do not forget that the white people are using their useless silver to buy goods on the land of China, which is actually equivalent to the white red fruit plundering the wealth of the Chinese, for decades, I don't know how much wealth in China has been plundered by the white people.

This situation must change, and the only way to prevent the wealth of the Chinese from being lost in vain is for the Chinese Empire to abandon the silver standard, or even the gold standard, and directly transition to the use of credit money.

Credit currency is a currency that is provided by national laws and regulations to force circulation that is not based on any precious metal and independently performs monetary functions, credit currency is a credit circulation tool provided by a bank, and its own value is much lower than its monetary value, and unlike proxy currency, it is completely decoupled from precious metals and no longer directly represents any precious metal.

At present, the only paper currency in circulation in the Chinese Empire - paper money, is not a credit currency, paper money can still be exchanged for silver, but in the four provinces, people because of the high reputation of paper money and its ease of use, people have completely abandoned the use of silver, copper coins, only use paper money.

According to the next plan, the Royal Bank will cooperate with the imperial government to issue credit money, completely abandon the silver standard, and will not use the gold standard system currently used in all countries of the world.

It is almost impossible for such a huge change to happen in countries like Britain, France, and the United States, but for the Chinese Empire, a country with an absolute monarchy, such a huge change is just a sentence from Yan Xueyi, and it just takes some time to prepare.

This is where the role of the Royal Bank comes in, which prints large quantities of banknotes and places them in branches located throughout the country.

Then the governments at all levels issued decrees that after the predetermined date was reached, the area was not allowed to trade in gold, silver, and copper coins, and those who held gold, silver, and copper coins could exchange them for equivalent paper money at a branch of the Royal Bank within a limited time.

In Chinese history, some dynasties have issued paper money, but these paper money can still be exchanged for gold or silver normally, and then due to various problems, the credibility of paper money has declined, and the purchasing power of paper money has also declined.

When the Chinese Empire began to abandon the use of the silver standard and switch to the use of credit money, the circulation of gold, silver, and copper coins must be strictly prohibited, and only paper money was allowed to be traded.

Because paper money cannot be exchanged for precious metals, the value of paper money can only be regulated by the imperial government, and government regulation is the most important step, and paper money must not be issued indiscriminately, resulting in the rapid depreciation of paper money, which will collapse the monetary system of the whole country, and the country's economy will be doomed.

The abandonment of the silver standard had a significant impact not only on the Chinese Empire itself, but also on the rest of the world.

After all, the Chinese Empire has grown into a great power comparable to Britain and France, and every move of the Chinese Empire will have a huge impact on the economy of the entire world.

Once the Chinese Empire announced that it would abandon the use of the silver standard and switch to credit currency, it would not only be the silver price of the Chinese Empire, but the silver price would fall sharply all over the world, and the Chinese Empire was the last big country in the world to cancel the silver standard.