# kaal:claim:3402701-021

**Claim.** Contesting the common assumption that a 100 percent reserve is required to guarantee a peg, the authors argue full reserves are not always necessary for any currency that has intrinsic worth.

**Type.** condition  **Support.** argued

**Holds when.**

- currency possesses intrinsic worth, for example genuine transactional use

**Source quote.**

> On the contrary, we argue that a 100% reserve is not always necessary, as is the case with any currency which has an intrinsic worth

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies - First Order Principles* (2019), 3.1.2.3 Hot Money Ratio, page 20

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies - First Order Principles (2019). SSRN: https://ssrn.com/abstract=3402701

**Verify.** sha256 of source PDF `72ed2581b4cac2bd18a5b2640be959487a3cbc34c86ab5e5664924bcdb53c8e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies%20-%20First%20Order%20Principles.pdf

**Topics.** institutional-design

**Keywords.** reserve-ratio, intrinsic-worth, peg-defense, contested-assumption

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