Dollar value against a basket of real goods rather than Bitcoin due to Bitcoin's volatility, aiming for an annual revision rate that promotes transparency and democratic participation in economic decisions. Using Bitcoin directly for contract denomination may reduce third-party interventions but introduces risks concerning long-term agreements.

There are concerns about government interference in contracts denominated in USD, particularly regarding exchange rates between USD and Bitcoin, which could lead to corruption. This has led to recommendations for denominating contracts in Bitcoin, adhering to the KISS principle for clarity and avoiding manipulation.

Government-mandated exchange rates, especially involving cryptocurrencies, face practical challenges, as evidenced by the emergence of black markets in economies like Venezuela. Such fixed rates don't always match market behavior, with free market dynamics often deviating from these rates, creating arbitrage opportunities that benefit those with privileged access. To have an equitable system, universal access to minting exchanges is essential, although political resistance may arise.

The principal-agent problem demonstrates the difficulty of artificially valuing and creating currency. Bitcoin offers an alternative, allowing central banks to address economic shocks without inducing inflation by varying BTC purchasing power. A market-based system for determining BTC to dollar rates could prevent manipulation and better meet macroeconomic targets like NGDP.

AI's impact on global economies raises concerns about the Cantillon effect, suggesting the need for consensus mechanisms like the N-of-N model to balance power distribution within economic systems and prevent potential domination by AI entities.

The principal-agent dilemma is significant in the context of inflationary minting by central banks, where motivations may diverge from objectives like price stability. The Cantillon effect, as seen during the COVID-19 pandemic, impacts wealth distribution and poses moral hazards that extend beyond the pursuit of price stability.

Passive investments, though popular due to risks associated with devalued cash, can be socially detrimental because of the principal-agent problem and asset underutilization, affecting market demand and prices. Conversely, deflationary currencies like Bitcoin offer an alternative economic strategy to inflationary models, suggesting that central banks could adapt by issuing inflationary currencies backed by deflationary ones or establishing dynamic exchange rate systems.

Finally, a collective bargaining method is proposed, where a central bank would help businesses, workers, and consumers coordinate automatic adjustments to prices and wages, potentially equitably distributing economic fluctuations without favoritism.