The Promatian monetary system functions through two fundamental ideas: the nationalisation of the banking sector and the socio-capitalist economic system.
Promatia's currency, the Proma (Ⱀ) is a fully digital currency
The bank of Promatia, PromaBank, will be the only bank that is authorized to bank with Proma. PromaBank will be a government/publicly-owned bank.
PromaBank will function as a:
Promabank earns money for the government by making investments based on fractional reserve lending. Pretty much a deposit to Promabank is similar to a loan. Promabank invests up to 75% of the money that its client's deposit, and keeps a percentage of it so that clients have a fair amount of money that they can spend.
This system allows a constant stream of money for the Government of Promatia when its investments turn a profit and a better Promatian economy since more new businesses have access to capital.
This section has been identified as biased towards Promatia. Keep an open mind by looking at more than one source before making a political decision.
While many countries identify as a capitalist, socialist, or communist economy, in reality, almost every nation in the history of the world (with maybe one or two exceptions, give or take) has a mixture of the three.
In a purely capitalist society, there would be no welfare state, and almost every action of the government as we know it today would stop. Conversely, in a purely socialist or communist society, there would have to be absolutely no chance for any black market. Still, it's nearly impossible to ensure that there are no black market activities in the vast expanse of many nations.
Promatia identifies its economy as socio-capitalist, meaning that our government is involved in the marketplace utilizing welfare to more impoverished citizens and offering free college and healthcare to every citizen.
The Government of Promatia recognises the importance of the powers that free markets have, but also realises that citizens need to be protected. The best way to have a mixture of both without a risk of the two extremes is to mix them for the best possible result.