{"id":34678,"date":"2021-11-20T15:41:06","date_gmt":"2021-11-20T21:41:06","guid":{"rendered":"http:\/\/huewhite.com\/umb\/?p=34678"},"modified":"2021-11-20T15:41:06","modified_gmt":"2021-11-20T21:41:06","slug":"word-of-the-day-747","status":"publish","type":"post","link":"https:\/\/huewhite.com\/umb\/2021\/11\/20\/word-of-the-day-747\/","title":{"rendered":"Word Of The Day"},"content":{"rendered":"<p><em>Seigniorage<\/em>:<\/p>\n<blockquote><p><b>Seigniorage<\/b>\u00a0<span class=\"rt-commentedText nowrap\"><span class=\"IPA nopopups noexcerpt\"><a title=\"Help:IPA\/English\" href=\"https:\/\/en.wikipedia.org\/wiki\/Help:IPA\/English\">\/<span title=\"\/\u02c8\/: primary stress follows\">\u02c8<\/span><span title=\"'s' in 'sigh'\">s<\/span><span title=\"\/e\u026a\/: 'a' in 'face'\">e\u026a<\/span><span title=\"'n' in 'nigh'\">n<\/span><span title=\"\/j\/: 'y' in 'yes'\">j<\/span><span title=\"\/\u0259r\/: 'er' in 'letter'\">\u0259r<\/span><span title=\"\/\u026a\/: 'i' in 'kit'\">\u026a<\/span><span title=\"\/d\u0292\/: 'j' in 'jam'\">d\u0292<\/span>\/<\/a><\/span><\/span>, also spelled\u00a0<b>seignorage<\/b>\u00a0or\u00a0<b>seigneurage<\/b>\u00a0(from the\u00a0<a title=\"Old French\" href=\"https:\/\/en.wikipedia.org\/wiki\/Old_French\">Old French<\/a>\u00a0<i>seigneuriage<\/i>, &#8220;right of the lord (<i>seigneur<\/i>) to mint money&#8221;), is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways:<\/p>\n<ul>\n<li>Seigniorage derived from specie (metal\u00a0<a title=\"Coin\" href=\"https:\/\/en.wikipedia.org\/wiki\/Coin\">coins<\/a>) is a\u00a0<a title=\"Tax\" href=\"https:\/\/en.wikipedia.org\/wiki\/Tax\">tax<\/a>\u00a0added to the total cost of a coin (metal content and production costs) that a customer of the\u00a0<a class=\"mw-redirect\" title=\"Mint (coin)\" href=\"https:\/\/en.wikipedia.org\/wiki\/Mint_(coin)\">mint<\/a>\u00a0had to pay, and which was sent to the sovereign of the political region.<\/li>\n<li>Seigniorage derived from notes is more indirect; it is the difference between interest earned on\u00a0<a title=\"Security (finance)\" href=\"https:\/\/en.wikipedia.org\/wiki\/Security_(finance)\">securities<\/a>\u00a0acquired in exchange for banknotes and the cost of producing and distributing the notes.<\/li>\n<\/ul>\n<p>&#8220;Monetary seigniorage&#8221; is where sovereign-issued securities are exchanged for newly-printed banknotes by a central bank, allowing the sovereign to &#8220;borrow&#8221; without needing to repay.\u00a0Monetary seigniorage is sovereign revenue obtained through routine\u00a0<a title=\"Debt monetization\" href=\"https:\/\/en.wikipedia.org\/wiki\/Debt_monetization\">debt monetization<\/a>, including expansion of the\u00a0<a title=\"Money supply\" href=\"https:\/\/en.wikipedia.org\/wiki\/Money_supply\">money supply<\/a>\u00a0during GDP growth and meeting yearly inflation targets.<em> [<a href=\"https:\/\/en.wikipedia.org\/wiki\/Seigniorage\" target=\"_blank\" rel=\"noopener\"><strong>Wikipedia<\/strong><\/a>]<\/em><\/p><\/blockquote>\n<p>Noted in the article &#8220;<a href=\"https:\/\/en.wikipedia.org\/wiki\/Stablecoin\" target=\"_blank\" rel=\"noopener\"><em>Stablecoin<\/em><\/a>,&#8221; <strong><em>Wikipedia<\/em><\/strong>:<\/p>\n<blockquote><p><a title=\"Seigniorage\" href=\"https:\/\/en.wikipedia.org\/wiki\/Seigniorage\">Seigniorage<\/a>-style coins utilize algorithms to control the stablecoin&#8217;s money supply, similar to a central bank&#8217;s approach to printing and destroying currency. Seigniorage-based stablecoins are a less popular form of stablecoin.<sup id=\"cite_ref-:1_9-0\" class=\"reference\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Stablecoin#cite_note-:1-9\">[9]<\/a><\/sup><\/p>\n<p>Significant features of seigniorage-style stablecoins are:<\/p>\n<ul>\n<li>Adjustments are made on-chain,<\/li>\n<li>No collateral is needed to mint coins,<\/li>\n<li>Value is controlled by supply and demand through algorithms, stabilizing price.<\/li>\n<\/ul>\n<p>Basis was one example of a seigniorage-style coin.<\/p><\/blockquote>\n<p>This, in turn, was noted in &#8220;<a href=\"https:\/\/www.washingtonpost.com\/business\/2021\/11\/16\/crypto-lobby-struggles\/?utm_campaign=wp_post_most&amp;utm_medium=email&amp;utm_source=newsletter&amp;wpisrc=nl_most&amp;carta-url=https%3A%2F%2Fs2.washingtonpost.com%2Fcar-ln-tr%2F354c971%2F6193e9909d2fdab56b8e7f16%2F59ee10d9ae7e8a504fd8ecd3%2F53%2F73%2F6193e9909d2fdab56b8e7f16\" target=\"_blank\" rel=\"noopener\"><em>Crypto companies, on defense in Washington, scramble to assemble a lobbying machine<\/em><\/a>,&#8221; Tom Newmyer, <strong><em>WaPo<\/em><\/strong>:<\/p>\n<blockquote><p>Financial regulators are not waiting to act. A Treasury Department-led group this month urged lawmakers to give bank regulators new authority to crack down on a type of digital token called stablecoins, arguing that left unchecked, their skyrocketing growth could threaten the broader economy. Separately, the Federal Reserve and other key regulators recently completed a review aimed at coordinating their approach to the industry. The agencies have not produced the findings yet.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Seigniorage: Seigniorage\u00a0\/\u02c8se\u026anj\u0259r\u026ad\u0292\/, also spelled\u00a0seignorage\u00a0or\u00a0seigneurage\u00a0(from the\u00a0Old French\u00a0seigneuriage, &#8220;right of the lord (seigneur) to mint money&#8221;), is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways: Seigniorage derived from specie (metal\u00a0coins) is a\u00a0tax\u00a0added to the total cost of \u2026 <a class=\"continue-reading-link\" href=\"https:\/\/huewhite.com\/umb\/2021\/11\/20\/word-of-the-day-747\/\"> Continue reading <span class=\"meta-nav\">&rarr; <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-34678","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/34678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/comments?post=34678"}],"version-history":[{"count":1,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/34678\/revisions"}],"predecessor-version":[{"id":34680,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/posts\/34678\/revisions\/34680"}],"wp:attachment":[{"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/media?parent=34678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/categories?post=34678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/huewhite.com\/umb\/wp-json\/wp\/v2\/tags?post=34678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}