This theory is largely based on the book "THE DEATH OF MONEY" by JAMES RICKARDS", but adapted for the

participation of Crypto Assets.

If you like this please do read his books as they explain this in far greater detail minus the Crypto Assets.

The Coming Reset of the International

Monetary System
Gold Realities, Gold Myths
Confusion about the role of gold arises because it's usually treated as an investment and is reported as such in financial media. Not a day goes by without a financial reporter informing her audience that gold is “up” or “down” on the day, and in terms of gold’s dollar price per
ounce, this is literally true. But is gold fluctuating, or is it the dollar? On a day that gold is reported to be “up” 3.3 percent, from $1,500 per ounce to $1,550 per ounce, it would be just as accurate to treat gold as a constant and report that the dollar is “down” from 1/1,500th of an
ounce of gold to 1/1,550th of an ounce. In other words, one dollar buys you less gold, so the dollar is down. This highlights the role of the numeraire, or the unit of account, which is part of the standard definition of money. If gold is the numeraire, then it is more accurate to think
of dollars or other currencies as the fluctuating assets, not gold.

Gold Price
Gold Nondeflationary price of gold in a global gold-backed SDR standard.

Tier 1
SDR
The SDR, which would be defined as equal to a specified weight in gold.

Tier 2
Each local currency unit would be defined as a specified quantity of SDRs.
Other Leading
Since local currency is defined in SDRs, and SDRs are defined in gold, by
Economies
extension every local currency would be worth a specified weight in gold.
United States Eurozone Japan China United Kingdom
Finally, since every local currency is in a fixed relationship to SDRs and gold,
each currency would also be in a fixed relationship to one another.

Central Bank Digital Central Bank Digital Central Bank Digital Central Bank Digital Central Bank Digital Central Bank Digital
Currency Currency Currency Currency Currency Currency

Price of XRP
Determination of the Fixed Rates XRP would be defined as a specified
quantity of SDRs just like the local
currencies.
The rate at which Central Bank Digital Currencies can convert to one another could be determined every four years based on the weighted average of bank foreign
currency transactions during the last twelve months prior to the fixing date.

The four-year period would give markets sufficient time to adjust and consider the implications of the new system, and the twelve-month averaging period would smooth out
short-term anomalies or market manipulation.

Participation Bridge Currency

In order to participate in the new gold SDR system, a member nation would have an open capital account, meaning that its currency would have to be freely convertible into XRP would act as a bridge between digital
SDRs, gold, or currencies of the other participating members. central bank currencies, which themselves
lack interoperability.

Other Markets China

Global markets in oil and other natural resources would now be priced in SDRs rather than dollars. This should not be a burden for the United States, Japan, the Eurozone, or others who
already maintain open capital accounts, but it could be an impediment for China, which
The financial records of the largest global corporations, such as IBM and Exxon, would be maintained in SDRs, does not.
and various economic metrics, such as global output and balance-of-payments accounts, would be computed
and reported in SDRs. However, China may find the attractions of a nondollar, gold-backed currency such as
the new SDR sufficiently enticing that it would open its capital account as broadly as
Finally, an SDR bond market would develop, with issuance by sovereign nations, global corporations, and possible.
regional development banks, and with purchases by sovereign wealth funds and large pension funds. It might
be intermediated by the largest global banks, such as Goldman Sachs, under IMF supervision.

China's Gold Deception

Money Supply
Initially, the new system would operate without an expansion of the global money supply. Any
nation that wanted SDRs could buy them from banks or dealers, earn them in trade, or acquire
them from the IMF in exchange for its own currency.
Local currency delivered to the IMF in exchange for SDRs would be sterilized so the global
money supply did not expand.
Once again we find ourselves looking at China. It seems absurd to posit that the international monetary system
could be reformed without major participation by China, the world's second-largest economy (third if the
Eurozone is viewed as a single entity). It is known, but not publicly disclosed, that China has far greater gold
reserves than it states officially.
In a revised alignment China would join the "gold club" with a 2.7 percent Gold/GDP ratio, equivalent to Russia
and the United States and comfortably above the global average.
Although it is rarely discussed publicly by monetary elites, the increase of China's gold ratio has actually been
occurring in recent years. When this gold rebalancing is complete, the international monetary system could
move to a new equilibrium gold price without China being left behind with only paper money. The increase in
China's gold reserves is designed to give China gold parity with Russia, the United States, and the Eurozone
and to rebalance global gold reserves.

The greatest risk to China in the near future is that inflation will emerge in the United States before China
Role of the Central Banks obtains all the gold it needs. However, once China does acquire sufficient bullion, it will have a hedged position
because whatever is lost to inflation will be gained in higher gold prices. At that point, China can give a green
light to U.S. inflation.
Discretionary monetary policy would be reserved to national central banks such as the Fed and ECB, subject to the need to
maintain fixed rates to gold, SDRs, and other currencies. This move toward evenly distributed gold reserves also explains central bank efforts at price manipulation, as
the United States and China have a shared interest in keeping the gold price low until China acquires its gold.

An echo of the old Bretton Woods system

Monetary Policy
The IMF would resort to discretionary monetary policy through the unsterilized creation of new
SDRs only in extraordinary circumstances and with approval of a supermajority of IMF members
participating in the new system.
Given these constraints on the creation of the new SDRs, the system would launch with the
SDR as an anchor and unit of account but a relatively small amount of SDRs in existence. The
combined base money supplies of the participants would constitute the global money supply, as
it does today, and that money supply would be the reference point for determining the
appropriate price for gold.
The percentage of physical gold backing the currency issues could even be increased or decreased
from time to time if needed. However, central banks participating in the system would be required to
maintain the fixed gold price in their currency by acting as buyers and sellers in physical gold.
Any central bank perceived as too easy for too long would find citizens lined up at its doors and would
be quickly stripped of its gold.
IMF gold-swap lines backed by other central banks would be made available to deal with temporary
adjustment requirements — an echo of the old Bretton Woods system.
These gold market operations would be conducted transparently to instill confidence in the process.

Fractional gold reserve required
Austrian School economics insist on 100 percent backing, but this is not strictly required. In practice, the system requires only
enough gold to supply anyone with a preference for physical gold over gold-backed paper money, and adequate assurance
that the fixed gold price will not be changed once established. These two goals are related; the stronger the assurance of
consistency, the less gold is required to maintain confidence. Historically, gold standards have operated successfully between
20 percent and 40 percent backing relative to money supply. Given the abandonment of gold in 1914, 1931, and 1971, a high
figure will be required to engender confidence by justifiably cynical citizens.
Emergency Powers
Importantly, the IMF would have emergency powers to increase the SDR supply with the approval of a
supermajority of its members to deal with a global liquidity crisis, but SDRs and national currencies
would remain freely convertible to gold at all times. If citizens had confidence in the emergency actions,
the system would remain stable. If citizens perceived that money creation was occurring to rescue elites
and rentiers, a run on gold would commence. These market signals would act as a brake on abuse by
the IMF and the central banks. In effect, a democratic voice, mediated by market mechanisms, would
be injected into global monetary affairs for the first time since the First World War.

For illustrative purposos, take 50 percent of money supply as the target backing; the United States, the Eurozone, China, and
Japan as the participating economies; global official gold holdings as the gold supply, and M1 as the money supply. Dividing
the money supply by the gold supply gives an implied, nondeflationary price for gold, under a gold-backed SDR standard, of
approximately $9,000 per ounce. 

This theory is largely based on the book "THE DEATH OF MONEY" by JAMES RICKARDS", but adapted for the participation of Crypto Assets.
@martincpvalk If you like this please do read his books as they explain this in far greater detail minus the Crypto Assets.