I'm starting my own country and I'm trying to determine which money system to put in place. I believe the Fiat money system is one of the major reasons America is in so much debt. I believe that if my country were to use the gold standard, it would eventually become corrupt and many flaws will exist.
The system I'm leaning the most towards is one that someone else may have already thought of. It will have a permanent, limited supply of "cash". For the grand opening of country BEARTHEWEAK, it will be announced that there is $100 (to keep it simple to explain) that will be in circulation throughout the economy, and that is the most- and the least- there ever will be. However, obviously the $100 "valuation" will fluctuate depending on the wealth of the economy. To allow for more precise prices, the $100 will be susceptible to precision splitting. By that, I mean that if the economy displays a need for there to be more currency floating around (so that I don't have to charge $1 for a bubble gum -1% of the currency in circulation!), then we will introduce penny measurements to represent 1% of a dollar. At that point, the people in the economy could charge 1 penny for a bubble gum (may still need more precision splitting because that's still a hefty 0.01% of the economy for gum). If there is further need for precision splitting, or increasing demand for the currency, then we will release something else that will be worth 1% of a penny... and so it continues. The purpose of this is to destroy artificial inflation that a mixture of the [Fed. and the Fiat money system] imposes on everyone, by default. This allows for more precision in currency, without having to destroy the value of existing dollars by creating new ones out of then air.
To have easy access to analytical data, all of the money will be stored virtually (like the money in your bank account on your debit/ATM card(s)). In other words, there would be no physical "cash" like we do in America. This has great benefits: ease of use, much less "user error", diminishing petty robbery, analytical purposes, etc.
It appears that this solves many of the issues America's money system imposes. The only flaw I can find is a person can be a currency "troll" and store up currency to drive the price up, and to ultimately have more wealth. However, this is negated because every single currency system has this flaw.
What are your thoughts?