More importantly, physical transactions cannot be easily tracked, making them ideal for tax evasion or the purchase of illegal goods. Hard currency can be stolen or counterfeited, so electronic fund transfers are the norm. All economies that participate in the credit network are required to price items in both local currency and credits.
A human with a bank account of Mexican pesos, Japanese yen, or Indian rupees can purchase any item priced in credits at fair market value. When the Systems Alliance joined the Citadel, its various national treasuries were linked into the credit network. Some regional currencies are worth more than a credit, and some less. The credit has a managed floating exchange rate, calculated in real time by the central bank to maintain the average value of all participating currencies. The Act also laid out regulatory guidelines for determining the value and exchange rate of the credit in relation to the currencies of the individual Citadel member races. This legislation was drafted by the volus, due to their expertise in financial and commercial matters. The credit was established as the standard galactic trade currency by the Citadel's Unified Banking Act, a piece of legislation enacted by the Citadel Council.
