ie credit has been "monetised".
Gold backing for monetised credit ended in 1971 ie the practice of requiring the "Capital base" to be stocks of gold bullion so that credit was nominally redeemable in gold.
There is not remotely enough gold in existence sufficient to meet the needs of the global economy. What gold does exist is demonstrably subject to routine manipulation by intermediaries (and Central Banks appear to be the worst offenders), so it would be inappropriate to use it as the basis of a currency.
IMHO we should use as a basis for a currency Units redeemable for other, more abundant, forms of value, in particular land rental values and energy. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
That is absolutely correct.
"The money we use is interest-bearing debt created by credit institutions upon the base of an amount of capital set by the Bank of international Settlements in Basel."
This is very interesting and complicated. I will have to read what is written about this..
