# A Future without Inflation: Breaking the Cycle with Asset-Backed Currencies

Source: https://blog.reserve.org/a-future-without-inflation-7efd62e354a0
Kiwi News: https://news.kiwistand.com/stories/A-Future-without-Inflation-Breaking-the-Cycle-with-Asset-Backed-Currencies?index=0x667d8fc5dd192bc8ca77b27656bc527599f4a1ea6f565335eeaadba208628ca70cf865aa
Submitted by starl3xx.eth on 2024-06-27 UTC, 2 upvotes, 0 comments

## Summary

The article argues that central banks cannot reliably match money supply to economic value, and that currencies backed by a basket of tokenized real-world assets could avoid inflation by tracking global growth automatically. It cites the Turkish lira, Argentine peso and Venezuelan bolivar, which lost most of their purchasing power in recent years, and quotes Alan Greenspan's 1996 admission that no simple model of the American economy explains output, employment and inflation. It presents the Reserve protocol, which supports hundreds of asset-backed currencies ("RTokens") with 70+ tokenized collateral assets and has had nine audits of its smart contracts.