Pending FRB FUNDING ROUND #4

[Stoppers]

A
MOTION
To

Bolster Cash Resources for Banking Sector Safety & to Stimulate The Economy​

Submitted by: Stoppers
Date: 1 April 2025
Classification: Fiscal

1. Justification​

In order to address the growing challenges within the financial sector, particularly regarding liquidity and the stability of banks, we propose minting $50 million. This measure is necessary to effectively support and engage with the current market dynamics, including the plot and items market, which we're actively exploring ways to responsibly interact with through stimulation and price stabilization.

A large portion of this mint is expected to provide more liquid cash to banks and the wider financial sector. While this additional cash could initially raise concerns about inflation, it won’t have the same inflationary impact as it would in real life. This is because some of the cash will be allocated to our Repurchase Agreement facility and used to sell currency to banks in exchange for securities such as stocks and bonds. This will increase liquidity for both banks and the broader sector without triggering significant inflation.

The loan market remains small and lacks demand, so it's unlikely that players will gain access to a sudden influx of additional cash through loans.

That said, the increased liquidity will make it easier for traders on stock exchanges to engage with banks and market makers (sector being more liquid). Moreover, this liquidity boost may encourage banks to feel more confident in purchasing plots and building commodity reserves, further stabilizing the sector and boosting the revenues of other sectors such as retail and real estate.

---

2. Implementation​

$50,000,000 of new currency will be minted. The action of minting currency shall be carried out by the Secretary of the Department of Commerce and deposited into the in-game FRB business account.
This minting will occur in 3 parts over the course of 3 months:

1. $25,000,000 on the approval of this motion by the Federal Reserve Board.
2. $10,000,000 on 1 May 2025.
3. $15,000,000 on 1 June 2025.

---

5. Effective Date​

Upon passage by the Federal Reserve Board.