Minecraft Name: Legoking236 Suggestion: I believe ECC needs a central bank Reason: In the real world, a central bank allows registered banking institutions to get access to large amounts of money at a lower interest rate, thus they can use this money to loan customers money at a slightly higher interest rate. This could help ECC to become a more hard core economy, allow people to register as a bank (for a fee e.g. 250,000) then they have access to commands that allow them to get money at the current interest rate (which should be able to be changed by Andrewkm) and loan it out, then on a certain date the money is automatically drafted from the users account (or what it can) so if the user took 100,000 as a loan from the central bank it may automatically pull 115,000 a week or two later, and they have loaned out that money and have hopefully been paid back with interest thus, the central bank makes profit, and the lender makes a profit. If the user was not able to pay it all back the plugin would draft what it could and anytime that user would receive money it would be taken until the full amount is paid. Of course if the user did not pay them back they would file a complaint and the regular process. Also there should be a cap of the maximum loan like 10 loans or 1,000,000 ECD at a given time. Any Other Information: No Link To This Plugin: No plugin exists, perhaps Khobbits would make one, pretty please? with a cherry on top? EDIT: Or perhaps, it could cost 500,000 to become registered as a bank, this amount is added to the bank from your account, thus the bank now has 500,000 in it, and generates a small amount of interest monthly, therefore the central bank would loan the money it has received from registered banks, so if 5 people registered that 2.5 million it could lend out, thus everyone relies on each other to pay it back (and the loans have interest which adds to what the bank can lend), Not spawning money, still allowing banks access to a central bank...
This would actually generate money, let's say someone intends to quit the server, he then gets a 1m loan and plays it all away in the lottery. a week or two later the bank demands 1.25m back. He would then end up in negative 1.25m. But he doesn't play any more, so the money won't ever return. That's 1m in the economy that wasn't in there before.
That is literally suggesting that we spawn money in. We are trying to keep inflation down, not shoot it through the roof.
I do not like the idea of spawning large amounts of money into the economy. This would just lead to inflation. -1
A central bank here would increase inflation, in real life central banks are there to control inflation. In ECC, it works very different from real life
That is controlled by the interest payed on other sets of loans, as this would not be a common occurrence....
Or perhaps, it could cost 500,000 to become registered as a bank, this amount is added to the bank from your account, thus the bank now has 500,000 in it, and generates a small amount of interest monthly, therefore the central bank would loan the money it has received from registered banks, so if 5 people registered that 2.5 million it could lend out, thus everyone relies on each other to pay it back (and the loans have interest which adds to what the bank can lend), Not spawning money, still allowing banks access to a central bank...
But if it works that way then what would be the point of a bank? Just lend money like you would in any other way. (something I absolutely do not recommend, loaning out money is one of the easiest ways to get scammed and lose big)
But what if someone takes out a million dollar loan and takes the money and logs off and doesn't return to ECC
Wait wait. Lego that idea is significantly better, but, I feel that should be without the bank itself gaining interest. It would be better if it only gained interest from the loans. That would help take money out of the economy because the money isn't being spawned in, its been put in by the members of the community. It could easily lose so much money while having potential to make money.
well people who would be devoted enough to spend 500k to be a registered bank seem pretty devoted, which would minimize the one user quitting issue. And yes rev an I do agree, remove the spawning of money completely.
What if someone lends money from the bank and spends it all, what would happen if the user can't pay the bank back? Let's say the same situation I described happens again, someone wants to quit, loans 500k and spends it all on lotto. He has no money to pay the loan back. Let's say he goes in negatives again. The user quits, so that money will never return. But the bank did take 500k from him. but the 500k they originally had was lost in the lotto and circulating around the economy, and the bank got 500k out of nothing. That's 500k extra in the economy.
I think the idea that might work, emphasis on the might, is the following: We make a bank system where players buy in. They loan out the money they originally put in in the buy in. Only that money. If a loan falls flat, then the money is lost until the person appeals and has to pay it back. That all being said. We could easily do this with a player run bank and thus I don't think a 'central' bank is required.
Yeh, what you're saying is already possible with user run player loans, but that's not what the suggestion is about :b
I think the most important aspect of a player bank, is that the players involved with the management need the collective ability to manage the bank's assets. I have suggested before that a currency block or item be used on ECC, that can be bought and sold to server at the same rate. This would allow for bank managers to have a collective area of chests with items that can be worth say a total of 1 mil. Then the bank managers can evaluate, negotiate, and run separate loans, but the managers need a simple and effective system to share capitol.
there is no extra money in the economy it was 500k that was pulled from circulation when that person applied... The new suggestion does not spawn in money...
