The Platinum Standard
The Platinum Standard is a universal code for minting coins created by the Free Commerce Committee and used by nearly all nations and financial institute present in Edora. The standard was developed to ensure currency is traded at its true value at all times, to prevent inflation and to enforce sanctions set by the FCC on non-tradable entities. Any nation or organization that wish to operate within the Free Cities must use a coin adhering to the standard or mint their own compatible coin.
History
While the Cruix has been used since the 11th century as a standard for internal trade, the iron coin proved to be of little value to outsiders to the Free Cities, despite having a claimed value of gold behind it stored in a bank's treasury. Most monarchs did not trust the Free Cities Bank with their funds, refusing to deal with anything but gold or other precious metals they needed for their own economies. For the dwarven states, who already had their own banking system, the question was not about the direct access to the gold, but its purity. The dwarves refused to trade with anything that is less than 24 karat in purity and while some of the FCB's reserves are of 24 karat, most are 22 or less, making it undesirable for trade. While offers to refine their existing stock into 24 karat were made, they proved too costly and would severely shrink every treasury in the Free Cities.
With agreement on gold not possible, the FCC turned to inspect other options. Silver was a popular alternative to gold in western economies who already relied on it considerably. The main issue was that it was much less common in the east where it was rarely mined directly from the earth and copper served as the main currency. Copper itself was viewed as a lesser material by western cultures for trade, so adopting it was also problematic. Other materials that were considered were iron, steel and even some variations of electrum.
Eventually, the committee decided on platinum. The metal was much harder to obtain, but its rarity was undisputed and it was much easier to refine than gold. Under the new regulations, platinum was to be traded in four forms; Piece, Bar, Ingot and Slate. Each is used for calculation of different quantities of coin, but remain unified in ratio. A piece weights 0.3 lbs (0.1 kg), a bar weights 3 lbs (1.4 kg) and ingots are weighted at 30 lbs (14.3 kg). The slate, weighting 100 lbs (45.5), was introduced in later years for the exclusive use of national trade and is the largest size unit available for legal trade. The new standard for platinum was tied not only to its equivalent price in relation to gold, but also to iron and copper as well as several other factors such as grain and even the overall population.
The transition from gold based economy to one based on tokens proved challenging. While platinum was very lucrative, the general public came to rely on gold. The scarcity of the metal also meant that nations that were not directly dealing with them found themselves at severe disadvantage against those who did. The economy of the cities themselves also suffered, as many found themselves earning much less than they had prior as the gold trade started to fall in favor of platinum.
To combat inflation in the price of platinum and to prevent predatory behavior, the Free Cities allowed nations to trade their gold for rights of platinum through certified trade partners. Most nations were still weary of the Free Cities Bank and of holding their savings in foreign lands, but promises to allow withdrawal of their investments in the form of food and other materials, in addition to more lucrative interest rates, slowly convinced the vast majority. The FCC then used the inflow of money to purchase platinum to continue and maintain a healthy market economy.
Despite the rough application, the standard proved successful. It streamlined continental trade and allows for the exchange of multiple currencies inside and outside of the Free Cities. For most of the general public outside of the Free Cities, the change was almost negligible except for the fact that they could now use their local currency in neighboring countries, provided those adhered to the standard as well.
Led weights for weighting pieces and bars.
Execution
Unless they command immense wealth, the Platinum Standard matters little to the individual, except for when they travel to or from one of the Free Cities. Most are completly dependet on local economies, holding few foreign investments if at all.
On the global scale, however, things are much different. Trading between nations or organizations is often done through the Free Cities, their ports and their banks. Any organization who wish to do business in the Free Cities using their localy minted currency must ensure that it is in accordance with the standard. This can have catastrophic effects on economies of nations who are under a trade embargo, such as nations of the Kadian Dominion who must rely on trade with Evornfel and the Kingdom of Dam Lodir since sunctions imposed on them during Krath's War for Independence in 1240.
Current Date: 2nd of Latsum, 1572
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Early example of Cruix designs from Sesan and Port Valor. Almost useless outside of the free cities.
Vintian Platina. The coin was originaly minted to adhere with the standard but became a status symbol of the elite Vintian culture.
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