Conversion of 

off-balance/ledger currency into 

on-balance/ledger currency

under rigorous CCP Currency Creation Process for entities or governments.

Currency creation takes place through a balance sheet extension: assets (mainly government bonds) are added to the balance sheet on the asset side and reserves on the liability side. The central bank creates the new reserves virtually “out of thin air” and thus acquires the assets.

Oft-ledger liabilities can be utilized similarly for corporations or entities.

The money creation process is the process by which new money is added to an economy. In most modern economies, this process is largely carried out by central banks and commercial banks.

Central banks, such as the Federal Reserve in the United States, are responsible for regulating the supply of money in an economy and ensuring monetary stability. One way that central banks create new money is through the purchase of assets, such as government bonds. When a central bank buys a bond from a commercial bank, it pays for the bond with a deposit at the central bank. This deposit is effectively new money that has been added to the economy.

Commercial banks also play a role in the money creation process. When a commercial bank makes a loan, it creates new money by crediting the borrower's account with the loan amount. This new money enters circulation when the borrower spends it.

The money creation process can also occur through the expansion of bank reserves. Bank reserves are the funds that a bank holds in reserve at the central bank and are required by law to ensure the stability of the financial system. When a central bank increases the amount of reserves that a commercial bank is required to hold, it effectively creates new money that can be loaned out to borrowers.

Overall, the money creation process is an important part of the functioning of a modern economy. By regulating the supply of money and ensuring monetary stability, central banks and commercial banks play a critical role in supporting economic growth and stability.

Developing strategies for smaller Central Banks within the Future Monetary System Architecture (FMSA), including CBDCs (Central Bank Digital Currency), Interbank REPOs and Reverse REPOs procedures to stabilise the country's economy and attract foreign investments.

Central bank digital currencies (CBDCs) are digital versions of fiat currencies, issued and backed by central banks. They aim to provide the same functions as physical cash, but with the added benefits of digital technologies, such as convenience, faster and cheaper transactions, and enhanced financial inclusion.

CBDCs can be classified into two categories: wholesale CBDCs and retail CBDCs. Wholesale CBDCs are digital versions of central bank money that are only accessible to financial institutions, such as commercial banks and payment service providers. They are mainly used for interbank settlements and wholesale payments. Retail CBDCs, on the other hand, are digital versions of central bank money that are accessible to the general public, just like physical cash. They can be used for a wide range of transactions, including person-to-person payments, e-commerce, and point-of-sale transactions.

CBDCs can be issued and held either in a centralized or decentralized manner. In a centralized CBDC system, the central bank issues and maintains the digital currency, while in a decentralized system, the central bank uses blockchain technology to issue and manage the digital currency. Both types of CBDCs have their own pros and cons, and the choice between them depends on the specific needs and goals of the issuing central bank.

CBDCs have the potential to revolutionize the way we use money and make financial transactions. They can provide faster, cheaper, and more convenient payment services, especially in countries where access to traditional financial services is limited. They can also enhance financial inclusion by providing a digital alternative to cash for those who do not have bank accounts or credit cards.

However, CBDCs also raise some challenges and concerns. One of the main concerns is the potential impact on commercial banks and other financial institutions, which may lose their intermediation role in the payment system. Another concern is related to privacy and data protection, as CBDCs may allow central banks to collect and analyze vast amounts of data on individuals' financial transactions.

In conclusion, CBDCs are an innovative and promising development in the world of digital currencies. They offer the potential to enhance financial inclusion, convenience, and efficiency, but they also raise some challenges and concerns that need to be carefully considered and addressed