In our contemporary world, the economic reality is dominated by fiat currency systems. Cryptocurrencies, too, have made their way into mainstream discussions. While these may seem like inevitable consequences of our evolving world, it is crucial to discuss the negative impacts they can potentially have on economic stability and the well-being of individuals, particularly within the Orthodox Christian community. Instead, an argument can be made for the revival of specie or specie-backed currencies, which offer a more stable and just alternative.
The Illusion of Wealth in Fiat Systems
Fiat currency, a legal tender whose value is backed by the government that issued it, is the dominant form of money today. Fiat money has no intrinsic value; its value is derived from the trust and confidence people have in the government’s promise. However, this system is susceptible to inflation and economic instability. When a government increases the money supply without an increase in goods and services, it creates inflation, which reduces the purchasing power of money, harming the poor and middle classes the most as the cost of living increases.
Orthodox Christians are taught to protect the weak and the vulnerable. Inflationary fiat systems are contrary to these teachings, as they often result in wealth concentration and increased inequality. The poor and middle classes, who spend a higher proportion of their income on necessities, bear the brunt of the cost as the price of these essentials increases.
Crypto-Currencies: A False Promise
Cryptocurrencies have been hailed by some as a way to decentralize economic power and offer a stable alternative to fiat currencies. However, the reality is that cryptocurrencies present new challenges. Their value is highly volatile, leading to speculative bubbles that can burst and cause significant financial loss. Furthermore, cryptocurrencies are often used for illegal activities due to their anonymous nature. Moreover, the environmental impact of mining cryptocurrencies is an often-overlooked issue, which contradicts Orthodox Christianity’s teachings on stewardship of the Earth.
The Case for Specie Currency
Specie currency, or money that is made from precious metal, often gold or silver, presents a stark contrast to both fiat and crypto-currencies. Specie has intrinsic value due to the rarity and desirability of the precious metal it is made from. This type of currency is not subject to the same inflationary pressures as fiat money because the supply of precious metals is relatively stable.
Specie-backed currencies enable fair trade, as their value is universally recognized and stable. They do not enable governments or financial elites to manipulate the money supply for their own benefit. Instead, they promote economic equality, which is aligned with Orthodox Christianity’s teachings on fairness and justice.
For Orthodox Christians, embracing a specie or specie-backed currency system reflects a commitment to a fair and equitable society. It represents a stand against systems that exploit the vulnerable and concentrate wealth and power in the hands of a few.
The Role of Specie Currency in Decentralizing Power
Finally, it’s crucial to discuss the potential of specie-backed currency in decentralizing power. Fiat currencies, managed by central banks, are often used as political tools. Conversely, a specie-backed currency limits the government’s power over the economy, thereby preventing economic mismanagement and protecting individual wealth from inflation.
Decentralization is more than just an economic concept. For Orthodox Christians, it can represent a way to live out their faith. It aligns with the principles of community, personal responsibility, and respect for human dignity.
In conclusion, while the transition to a specie-backed currency might seem daunting, especially in our digitized and globalized world, it is worth considering the potential benefits:
- Promotion of Economic Justice: Orthodox Christianity has a strong emphasis on social justice, which includes economic justice. Specie currency, by nature, discourages economic practices that lead to inequality. The limited and stable supply of precious metals makes it difficult for governments or financial elites to manipulate the currency for their own benefit, thus preventing economic crises caused by inflation or deflation. This contributes to a more equitable distribution of wealth in society, a concept in line with Orthodox Christianity’s teachings on social justice.
- Encouragement of Moral Integrity: The use of specie currency can help discourage dishonest financial practices. Fiat currencies and digital currencies can often be used in fraudulent activities, tax evasion, and money laundering. On the other hand, the physicality of specie currency makes these fraudulent activities more challenging, thus promoting honesty and integrity, values deeply rooted in Orthodox Christianity.
- Stability and Trust: Unlike fiat currency, which is based on trust in a government’s promise, specie currency is based on the inherent value of precious metals. This brings about a sense of stability and trust, as the currency is not subject to abrupt changes in value due to government policies or economic events. This stability can promote peace of mind among Orthodox Christians, reducing the anxiety and stress associated with economic uncertainty.
- Promotion of Self-Reliance and Community Independence: A shift to specie currency can help communities become more self-reliant and independent. Instead of relying on centralized power for economic stability, communities can take control of their own economic affairs. This principle aligns with the Orthodox Christian emphasis on the importance of community and mutual support.
For Orthodox Christians, a shift to a specie-backed currency may be more than just an economic decision; it might be seen as a moral and spiritual obligation.
Sources and Resources:
- “What is Specie Money?” Investopedia
- “Inflation and Its Effects on the Church and Society”, Orthodox Christian Laity
- “The Orthodox Christian and Economic Morality”, Orthodoxy and Heterodoxy
- “Christian Perspectives on the Use of Specie Money”, The New American
- “Gold, Silver and the Glory of God”, Orthodox England