Vision & Mission

Sustainable Development Goal 9

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
SDG #9 highlights the necessity of building infrastructure strong enough to facilitate inclusive and sustainable industrialization and innovation. ARYZE is building the tools to provide two billion people access to financial services, finally making finances inclusive and fostering every type of innovation worldwide.

Full Reserve Banking

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Failed Banks

There have been 511 bank failures between 2009 – 2020. The cost of these failures has has a cost of Deposit Insurance Fund (DIF) 

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26% of worldwide bankruptcies are expected globally in 2021

Full Reserve Banking

The money we have in the bank does not exist 1 to 1, but rather exists as a form of debt certificate. Imagine you have USD 100 in the bank, you may think this is your money but there is no USD 100 with your name on it, they do not exist 1 to 1 like, for example, cash does. In today´s financial world the bank would take USD 10 and put them in the central bank and then spend the resting USD 90 on lending to others who need a loan. The people then pay interest on their loans and the bank makes some money on their bank operations.

The idea for ARYZE´s full-reserve banking stems from The Chicago Plan. This monetary reform came to life in the midst of the Great Depression. The plan called for the separation of the monetary and credit functions of the banking system.

When we look at the subject of credit, sudden increases and contractions of bank credit are not necessarily driven by the fundamentals of the real economy. Today, banks can generate their own funding deposits in the act of lending. By contrast, implementing the Chicago Plan would turn banks into intermediaries that depend on obtaining outside funding before lending

Under The Chicago Plan, the quantity of money and the quantity of credit would become completely independent of each other, and financing of new bank credit can only take place in the form of government-issued money or through the borrowing of existing government-issued money from non-banks, but NOT through the creation of new deposits by banks.

Financial institutions take risk which, we have limited insights into, based on our deposits of money, which leaves our money at risk if a financial institution defaults unless the deposits are credit insured or government guaranteed. Corporate deposits are generally not insured or guaranteed.

Bank credit policies in turn often have positive or negative economic consequences beyond what is acceptable from a general national economic perspective. Furthermore, private and public debt also play a role in credit and market risk, more importantly so, after the onset of the pandemic.  

Frequently Asked Questions

Banks are based on a fractional reserve model that is reliant on lending and credit activities. 

Full Reserve Banking

Our Answer

ARYZE is proposing is a 1 to 1 representation of money that is not fragmented and based on lending. This means that when we receive a deposit of 100 USD, then we would put 100 USD in the Central Bank of the United States. We will not keep any money in our bank layer, we will not lend them out and we will not offer credit so your money must exist 1 to 1 and it must exist in such a way that even if ARYZE ceases to exist as a financial institution then the money is secure. We do not touch the money and more importantly, the money is not ours.

ARYZE will contribute to financial stability based on the principles of The Chicago Plan. The goal is to create a more competitive environment for borrowing money and attracting depositors. Technology enhances this capability and brings us closer to Community Financing by using decentralized platforms and crowdfunding.

If ARYZE defaults, users are backed by government guarantees. Both individuals and companies alike. Today, companies lose a lot of money or even go bankrupt when banks default. This has a detrimental social impact on the economy and causes great losses in the form of unemployment.

Related material

What is the difference between fractional-reserve and full-reserve banking?

An alternative to fractional-reserve banking is a system where banks are obligated to keep the full value of each depositors’ funds, ready for immediate withdrawal on demand.
Play Video

What is the difference between fractional-reserve and full-reserve banking?

An alternative to fractional-reserve banking is a system where banks are obligated to keep the full value of each depositors’ funds, ready for immediate withdrawal on demand.