Chapter 2930: A Business Model That Can Be Almost Eternal

"Then, President Zhenna, have you ever thought that one day the Gold Coin Exchange Voucher of the Ming Shui Chamber of Commerce could become the universal currency of Netheril?" Xia Duo probed.

If the Ming Shui Chamber of Commerce also had thoughts of issuing a credit currency, then they would have to be extra careful from here on out; if not, then the matter of Daxia Territory switching to a new currency might not be such a big deal.

To this, Zhenna's answer was naturally affirmative, but at the same time, she regretfully stated, "Even the Gold Coin Exchange Vouchers issued by the Seven Cities Council cannot necessarily gain the unanimous recognition of lords everywhere, let alone a private chamber of commerce like the Ming Shui Chamber of Commerce! Such a situation is almost impossible to happen!"

"In that case, I must tell you, Madam, that an order built upon a certain type of physical currency is likely difficult to circulate nationwide. Most crucially, even if it truly did circulate nationwide, it would be very easily replaced by another currency."

As long as it is not a credit currency, but rather uses the value of the currency itself as an anchor, then it is inevitably impossible for a specific universal currency to exist; instead, there will be numerous currencies based on certain materials that exist widely.

Just like the gold coins currently circulating within Netheril, although the quality of the Ming Shui Chamber of Commerce's gold coins is top-tier, they have not been able to occupy the majority, being popular only within the scope involved by the Ming Shui Chamber of Commerce, while elsewhere, gold coins minted by local lords themselves are generally used.

Considering circulation with the outside world, the specifications of gold coins in various places are generally regionally consistent, at about 5 grams or so, with a gold content of at least ninety percent.

For anything below this specification, the receiving party can refuse to accept it.

Of course, a gold coin is, after all, a physical substance, and with different degrees of wear and tear, it is almost impossible for two identical gold coins to appear.

Therefore, in Netheril, there are also some chambers of commerce that specialize in the business of identifying, recycling, and recasting gold coins, being able to skim a bit of profit from the entire monetary system.

In reality, with classical precious metal currencies, no party can stably make big money for long; after all, the price of the precious metal itself is set there, and even if there is some room for arbitrage, it will quickly balance out.

Only with a credit currency can the issuer consciously and steadily harvest wealth in waves by adjusting the total amount of currency in the market.

There is not a single chamber of commerce that does not hope that the Gold Coin Exchange Vouchers it issues can circulate nationwide and stably exchange for gold coins of the same face value, but at the same time, no chamber of commerce wishes to use someone else's Gold Coin Exchange Vouchers.

Until now, Zhenna finally reacted, and her gaze became sharp. She looked straight at Xia Duo and asked, "Are you trying to persuade me to give up the Mingshui New Currency? Or is it that you also want to get a foot in this domain?"

Giving up the Mingshui New Currency is impossible. Not to mention how much has already been invested, no one would be willing to give it up suddenly, and more importantly—

Once the Mingshui New Currency is abandoned, Zhenna would likely be considered to have made a decision error within the Ming Shui Chamber of Commerce and would inevitably face accountability from the Elders and Councilors.

Even bringing up the excuse of Ascension to Godhood might be of no avail, and even more seriously, it might shake her current authority.

Therefore, even if she really did something wrong, she could not admit it until she had completely controlled the chamber of commerce and completed the reform.

Xia Duo noticed Zhenna's sensitive attitude and could not help but sigh inwardly. With a shift in his thoughts, he immediately explained:

"I have not considered Ascension to Godhood for the time being. Actually, what I want to say is that an order based on a non-special thing is not stable; the Mingshui New Currency is essentially no different from the currency minted by other territories.

"I am also not trying to persuade you to give up the Mingshui New Currency, but rather that you could consider establishing a more stable order, using a long-lasting and reliable business model as the Order Cornerstone, rather than gold coins that can be exchanged at any time."

"A long-lasting and reliable business model?"

Upon hearing this, Zhenna instinctively felt that the following conversation might change many of her thoughts, but she still pretended not to care and said, "Business itself is risky; how can there be any long-lasting and reliable business model?"

"Long-lasting and reliable does not mean there is no risk; these are two completely different concepts." Seeing that Zhenna was interested, Xia Duo began to promote the new business model he had designed for her, "I wonder if you have heard of the Boatman Annuity, Zhenna?"

"Boatman Annuity? I seem to have heard of it somewhere; let me think!"

Zhenna needed to recall, and Xia Duo did not urge her. If Zhenna could think of it herself, that would naturally be better; conversely, introducing a concept from scratch and having to use this concept to persuade someone is the most difficult part.

"Ah! I remember!" Zhenna's memory suddenly became vivid, "Are you talking about the living subsidy regularly issued by the Boatman Guild in Seventon to the families of crew members who met with accidents?"

"Yes, that's the one!"

Seeing that Zhenna had some understanding of the Boatman Annuity, Xia Duo further introduced, "But think about it, could the Boatman Guild pay money to the families of crew members who met with accidents out of its own pocket?

"Of course not! In fact, the money the Boatman Guild issues to the families of crew members who met with accidents comes from the fees paid in advance by the crew members. According to my understanding, the money the guild issues to the families of crew members who met with accidents is about 2 to 3 times what the crew members paid in advance."

"Wouldn't there be crew members who deliberately cause accidents to give their families a little more money?" Zhenna saw the loophole in this model at a glance. In an era where human life can be measured in gold coins, such thoughts are easily generated.

Regarding such a possibility, Xia Duo did not deny it, "Usually, it is only some old or disabled crew members who would do this, and before doing so, they often have to bribe the captain first so that the captain will allow them on board.

"But a normal, healthy crew member would never make such a choice under any circumstances. On one hand, the insurance premiums they pay monthly are relatively low, so even if they die, the guild pays little; on the other hand, the income of crew members, especially sea-going crew members, is actually quite good."

"So this is the long-lasting and reliable business model you want to talk about?" Zhenna could not help but feel a little disappointed.

The Boatman Guild was originally a place for crew members to huddle together for warmth; if the Ming Shui Chamber of Commerce were to forcibly get involved, it would likely be considered greedy.

Xia Duo had an explanation for this, "Of course, it's not just this. I call this business model 【Insurance】. The target is not limited to the boatman group, but can be for anyone; any situation that involves risk can be insured.

"The insurer provides such insurance services, and the policyholder spends money to buy peace of mind or to stop losses. As long as the premiums and compensation ratios are set properly, plus enough customers, this is a long-lasting and reliable business model.

"And enough customers and the insurance service itself achieve each other. As long as the service is in place and one is not too greedy, there is almost no need to worry about being unable to continue."

After Xia Duo finished speaking, he picked up his teacup and took a small sip, watching Zhenna, who was still lost in thought, wondering how she would choose.