Litepaper
Denario: A Silver AND GOLD-Backed Real-World Asset for the Digital Age
Innovation in blockchain-based finance is unabated. Gaining increasing attention is the topic of real-world assets, RWAs. Since the beginning of 2023, the value locked in RWA projects has increased by about 7000%, from $118 million to just under $8 billion. At the same time, the number of wallets holding RWA tokens has grown from just under 8,000 to over 42,000.
With its tokens backed by physical silver and gold granules, Denario is contributing in a fully compliant way to the growth of RWAs on the blockchain. This litepaper explains what Denario is, the reasons to choose its Denario Silver Coin (DSC) and the complementary addition of its Denario Gold Coin (DGC), and how it all works.
Let’s Get Started: Living in Precarious Times
In the wake of unprecedented global shifts, our world stands at a crossroads. The post-Covid era has ushered in a multitude of transformative changes, presenting a new set of challenges that demand innovative solutions. The year 2022 bore witness to a resurgence of conflict, as war reemerged in the heart of Europe. The Russo-Ukrainian War triggered supply chain disruptions that reverberated across borders. In conjunction with the concerted efforts to combat the pandemic-induced shutdown through fiscal stimulus measures, the situation resulted in a surge in inflation that started its ascent in April 2021. In 2024, society grapples with a fresh array of complexities, with war in the Middle East threatening global supply chains and energy prices.
Over the course of the following year, inflation in the world’s biggest economy rose to over 9%. Intimidated by this rapid change, the United States embarked on a battle against inflation. March 2022 marked the commencement of a fast-paced journey, with the US central bank initiating a series of interest rate hikes that culminated in over 5% by the summer of 2023. While this broke inflation’s upward trajectory in the US and has brought it down again, in other parts of the world, inflation is still lagging. In the U.K. for example, reported inflation is still 7.9% in August 2023, whereas unofficial inflation data by Truflation is a staggering 11.57%.
As central banks worldwide have rallied in the fight against inflation, the sustainability of the world economy’s debt situation is called into question. In August 2023, the United States’ long-term credit rating was downgraded to AA+ from AAA. Whether it was the $970 billion in annual interest that the US government is obliged to pay or the $1.89 trillion in debt that the country is poised to add by 2024, the severity of the situation must have moved the needle. Given the rapid growth rate, US interest payments have already reached the daunting $1 trillion threshold, marking a pivotal point in the nation’s financial history. Reflecting on the not-so-distant past, it is a poignant realization that just over four decades prior, the entire U.S. national debt stood at $1 trillion.
Governments are not the only ones struggling. As evidenced by the 2023 regional banking crisis within the United States, banks are equally susceptible to the turmoil of unsustainable finances. The U.S. central bank's creation of yet another emergency credit facility underscores the crisis faced by beleaguered banks. Notably, bank failures have not only occurred in the United States. Switzerland’s finance sector was equally shaken, with its second largest, systemically important bank Credit Suisse going under.
Continue by downloading the full litepaper below...