Chapter 104.1

The Renslet Standard (2)

What I revealed to Entir was none other than paper currency.

“Paper money!”

“It’s called the Renslet Standard. For simplicity, it will be referred to as the ‘Ren.’”

“Ooooh… With this level of intricacy, counterfeiting will be nearly impossible.”

“It’s issued using advanced printing techniques only available in the North.”

“Indeed… This delicate portrait of Her Grace, the Grand Duchess, would even challenge the Golden Tower to mass-produce.”

“Additionally, we’ve incorporated anti-counterfeiting enchantments.”

“Enchantments? How could you enchant such a large volume of paper money? Would anyone even attempt to counterfeit something so intricate?”

“You never know. Perhaps not now, but in the future, someone might.”

“You are, as always, incredibly thorough.”

Entir glances between me and the paper currency, his eyes betraying a hint of exhaustion.

“The paper includes a special treatment using alchemically processed Magic Stone powder. The printing machines are magically enchanted devices I personally customized, enabling large-scale production of enchanted currency.”

Looking at the banknotes with a tinge of bittersweet pride, I continued, “Fortunately, since the enchantments are basic, mass production was feasible. Additionally, the currency is compatible with existing coinage verifiers.”

Even with basic enchantments, producing large quantities without magical engines—using only steam power, magic circuits, and alchemy—required countless trials and errors.

“It was a challenging endeavor, but a worthwhile one.”

“Ooooooh…”

‘It feels good to be appreciated like this.’

Seeing Entir react so enthusiastically to the fruits of my labor made all the hardships seem worth it.

“There have been murmurs recently about reintroducing paper currency as a solution to the coin shortage. Of course, no one dared take the initiative.”

It was natural. In the past, the Empire and various kingdoms had experimented with paper currency akin to promissory notes.

However, as with Earth’s history, paper money in Arcadia had yet to become widely accepted for similar reasons.

“But…”

“Yes?”

“Who will hold the authority to issue this currency? Will it be Her Grace, the Grand Duchess?”

“We’ll establish a committee—a body with absolute authority, one even the sovereign cannot meddle with.”

“!!”

On Earth, and here in Arcadia, the primary obstacle to adopting paper money wasn’t just the technical challenges of papermaking and printing or the threat of counterfeiting—it was politics. Rά𝐍ŏ𝖇Ës

An uninformed ruler meddling recklessly could destroy the trust painstakingly built around a currency system.

“A committee beyond the sovereign’s influence… If that works as intended…”@@novelbin@@

Whenever such trust was shattered, people would abandon paper money and return to using coins like gold, silver, and copper—heavier and bulkier, but far safer.

Trust and credibility were paramount.

“May I examine this in detail?”

“Of course.”

Entir picked up a 10-Ren note, staring at it as if in a trance.

Like a wizard marveling at an artifact from the Golden Age.

Like an artist admiring a peerless masterpiece.

Like a teenage boy gazing at his first love.

The Renslet Standard consisted of six denominations:

1 Ren, 5 Ren, 10 Ren, 50 Ren, 100 Ren, and 200 Ren.

Here, 1 Ren equaled 10 Copper.

5 Ren equaled 50 Copper.

10 Ren equaled 1 Silver.

50 Ren equaled 5 Silver.

100 Ren equaled 10 Silver.

200 Ren equaled 1 Gold.

The currency values were deliberately set high, accounting for future inflation.

The designs were largely similar across denominations.

On the right side was a portrait of Arina, and the notes featured detailed depictions of northern landscapes, architecture, and specialties.

The differences lay in the color schemes and the numbers and images representing the denominations.

Given the high illiteracy rates, icons of silver and copper coins corresponding to the value were included on the left side.

Additionally, the portraits of Arina varied in artistic style by denomination:

1–5 Ren (Copper value): Northern Romanticism style.

10–100 Ren (Silver value): Northern Heroic style.

200 Ren (Gold value): Northern Impressionist style.

“Beautiful,” Entir finally murmured, his eyes glued to the note.

But his remark wasn’t directed solely at Arina’s portrait.

He was captivated by the entirety of the design: the physical currency, the system that would back it, and the economic architecture it represented.

To a born merchant like him, the Renslet Standard was like a grand symphony—a masterpiece of economic engineering.

“This… This is entirely feasible! With the Arad Corporation already absorbing the continent’s gold and silver, this currency can undoubtedly take root!”

Entir’s childlike excitement was evident.

“So, this was why you sought to establish an independent northern bank!”

“Yes. An independent currency requires an independent banking system.”

“However, President Jin, one concern still lingers.”

It bothered me slightly that he kept calling me “President Jin” instead of “Chairman Jin,” but I decided to address it later, along with the restructuring of the Arad Group.

“Please, share your concern.”

Entir leaned in with genuine worry.

“The trust underpinning paper currency begins with the belief that it can be exchanged at a bank or government office for an equivalent amount in gold or silver.”

“That’s the foundation, yes.”

“But the issue arises when banks or governments inevitably print more currency than they have gold or silver to back it.”

“You’re referring to the problem of fractional reserve banking.”

“Exactly!”

Entir had touched upon what was essentially the basis for modern banking on Earth.

For example, when 10 Silver is deposited in a bank, the bank lends it out tenfold to trading companies, earning interest in return.

Since the physical coins cannot be duplicated, banks issue checks or request the government to print additional paper currency equivalent to 10 Silver for distribution.

Thus, a theoretical 100 Silver is created out of nowhere.

It was, essentially, a legalized Ponzi scheme, one only governments and banks could conduct.

In a world like this, where trust in banks and governments was still tenuous, such a system remained largely theoretical.

“No matter how successfully the Renslet Standard is implemented, if this dilemma grows unchecked, it could one day implode—causing chaos across the continent.”

Entir’s worry was palpable. For a merchant, this was more than a concern; it was near-panic.

“There’s no need to worry. We’ll anchor the currency’s stability with something beyond just gold and silver.”

I brushed off Entir’s concerns with confidence.

“Something beyond gold and silver?!”

“You’re well aware, President Bishop, of the surging demand for Magic Stones.”

“…!”

“As magitech advances, the demand for Magic Stones will grow exponentially—regardless of grade.”

“Surely you don’t mean—?!”

“From now on, Magic Stones in the North can only be purchased with the Renslet Standard.”

“!!”

This was the same technological trajectory that Earth’s US Dollar had taken.

“When someone gives you a gift, you should use it right away. That’s the proper way to show gratitude.”