Taler Bullion is Fully Backed

Taler Bullion and its variants are fully backed. This is guaranteed by legal structures that avoid any abuse of the backing values, and makes it possible to always fill a claim to the value.

Early forms of money were valuables themselves. Be they rare shells or bronze and copper coins, but the material held was the value itself, and that served as currency. Paper money was invented in China as an easier form to handle in trading. It helped to pass money more fluently in return for goods trading.

Paper money is in itself far less valuable than its face value, and so there is a need for a depot of valuables. A system where this depot covers only part of the outstanding money is called a partial reserve system, and it is sensitive to the problem of a run on the bank (where a large amount of money is being traded for the underlying value in a short time). In a system with full reserve the money in circulation is fully backed with the underlying value.

Taler Bullion is a full reserve system, and so are its variants Taler Energy, Taler Focus and Taler Dinosaur.

• The chapter on inflation explains why.
• The chapter on title of ownership could not be faithful otherwise.