Tectum is set to launch SyntezNote – a blockchain-based digital asset that can solve current economic and financial challenges. This product combines the best features of Bitcoin, stablecoins, and fiat currencies. Looking at the global economic situation, a financial pandemic is affecting most countries worldwide
. Although there are several reasons for this fiscal catastrophe, poor government policies and mismanagement of funds remain significant underlying factors. Everything else only accelerated the outcomes of bad decision-making. These flawed economic decisions have caused various countries’ currencies to become volatile and lose value due to inflation. What if we told you that Tectum is partnering with the authorities of various nations to protect their currencies and reduce depreciation?
We are collaborating with the authorities of numerous countries to introduce a new product that will enhance the economic sovereignty of their currencies and ease dollarization pressures. This article is a deep dive into what SyntezNote is all about.
Before we delve deeper, let’s first examine dollarization and how it impacts the currencies of countries outside the US.
People casually refer to the US Dollar as “the world’s reserve currency” without fully understanding its meaning and implications. $11.5 trillion—amounting to 60% of the world’s foreign reserves—is held in dollars, making it the most used currency for international trade.
Although having a seemingly agreed-upon unit of exchange might appear beneficial for all countries, this has not been the case. During the pandemic in 2020, the US government printed $3 trillion to support individuals and businesses affected by COVID-19. Many experts criticized this decision, arguing it could lead to inflation and an increase in asset prices. Despite the concerns, the authorities maintained that the intervention was necessary.
Why are US fiscal policies so important, and how do they impact other countries? How is everything tied to dollarization?
As mentioned earlier, 60% of global foreign reserves comprise the US Dollar. Consequently, every fiscal decision the US government makes affects countries holding the currency. A notable example is the printing of $3 trillion to support citizens and businesses.
Printing excess fiat notes beyond certain thresholds leads to hyperinflation and a loss of value. The United States should have felt the full implications of printing such a massive sum into its economy. However, the USA was not entirely affected, as the impact was cushioned by other nations holding the dollar as reserves.
What ended up happening was that the foreign reserves of these countries lost value. Some might argue that the total money in foreign reserves didn’t decrease because the United States printed more dollars. However, the dollars stored away in foreign reserves lost their value. For instance, items worth $1 several years ago now cost much more.
SyntezNote is a hybrid financial solution that combines the best features of fiat currencies, Bitcoin, and stablecoins. Built on blockchain technology, this innovation merges Bitcoin’s inflation-proof nature and stablecoins’ consistency with the familiarity of fiat currencies to create something extraordinary.
Enough with the big words—let’s explain it simply.
Fiat currencies are familiar to everyone. However, they lack transparency. Governments can print more notes without public notification, leading to hyperinflation and ruining the nation’s economy. On the other hand, Bitcoin has proven to be inflation-proof. Its supply is finite, and no one can create more Bitcoin.
In addition to being limited in supply, Bitcoin transactions are transparent and immutable. This ensures that no one—not even the government—can engage in shady practices without being caught. Lastly, stablecoins provide a safer entry point into DeFi because their value is relatively stable and closely resembles fiat currencies.
Instead of relying on the dollar, countries will hold Bitcoin as a foreign reserve. With BTC backing their currencies as reserves, nations can create stablecoins on the Tectum blockchain with a 1:1 value to their fiat currencies.
Then, individuals, businesses, and even governments can use this digital currency for transactions. Multiple settlement methods will enable people to utilize this new medium of exchange in their everyday lives.
Since Bitcoin’s inception, cryptocurrencies and fiat currencies have always been worlds apart. However, this new product from Tectum bridges the gap between physical and digital assets. People won’t need special merchants to send and spend SyntezNote Bills. They can use and trade it just like stablecoins and fiat currencies.
Now that we understand what SyntezNote is, let’s explore how it works.
The core idea of SyntezNote’s functionality lies in its major components: blockchain technology, fiat currencies, Bitcoin, and stablecoins. Let’s break down their roles:
With these features, Tectum will mint SyntezNote Bills pegged 1:1 with fiat currencies for everyday expenses. This product will also include features like scan-to-pay and offline payments, similar to SoftNote.
The benefits of SyntezNote, the first hybrid financial solution, are already evident. Here are the advantages for governments, businesses, and individuals:
In summary, SyntezNote fosters a cycle of currency sovereignty, stable economies, and business growth, ultimately benefiting all.
