Digital Currency and Central Banks

DigitalFiatCurrencyforEveryoneandNow
DavidWen
ChiefScien:st@eCurrency
7/26/2016
HistoryIsRepea:ngItself
Gold
Bifurcate
Private
Bank
Notes
Unify
Central
Bank
Currency
Bifurcate
Unregulated
Private
E-money
Logosandimagesonthispageareforillustra:vepurposesonly.
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Unify
Digital
Fiat
Currency
DigitalFiatCurrencyIsALegalDoctrine
PhysicalRepresenta?onsofMoney
FiatCurrency(PaperandCoins)
•  Createdasamediumofexchangewithina
circleofacceptance
•  CentralBankissued
•  Privatelyissued
•  Legaltender
•  Non-reliablesourcetostorevalue
•  Sovereigndenomina:on
•  Acceptedwithinacircleofusers
•  Unitofaccount,mediumofexchange,store
ofvalue
ElectronicRepresenta?onsofMoney
(E-Money)
DigitalFiatCurrency
•  Issued(electronically)inexchangefor
currency
•  CentralBankissued
•  Privately-sanc:oned
•  Legaltender(inelectronicform)
•  Non-reliableelectronicstoreofvalue
•  Sovereigndenomina:on
•  Operatesinclosedsystems
•  Unitofaccount,mediumofexchange,store
ofvalue
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TheCaseforDigitalFiatCurrency
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WhatIsNeeded:AZeroToOneSolu:on
FinTechinvestment
Paymentvolume
WorldGDPgrowth
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RequirementforaDigitalFiatCurrency
System
Agnos:c
Distributed
DFC
DigitalFiat
Currency
Distributed
DFC
OtherDigital
Currency
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Containeriza:onisanzerotooneinnova:on
withoutcrea:nganewmeansoftransporta:on
Governance
Technology
-Standardization
-Enhance Security
-Interoperability
-Reduce theft
-Efficiency
-Shorten time
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BenefitofContaineriza:onin5years
•  17:mesproduc:vityincrease
•  6:mesofcostreduc:on
•  Be^ersecurityandshortertransit
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Containeriza:on:transport
agnos:cinteroperable
instrument
eCurrency:systemagnos:csecure
interoperableinstrument
eCurrency APIeCurrency APIeCurrency APIeCurrency API
and Applianceand Appliance and Applianceand Appliance
Logosforillustra:ononly
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WetooktheideatoCentral
Banksaroundtheworld
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TheCaseforDigitalFiatCurrencyforFinancialInclusion
BankingRegula:on
Banked
“Account”
MØ
LegalTender
IssuedbyCB
M1
20%
Non Banked
80%
“Currency”
MØ
CurrencyRegula:on
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Logosforillustra:ononly
ProblemUseCase:MobileMoneyChallenge
MucheffortinFinTechweredevotedtoreachingcustomers
withneweMoneysystems(wallet,pre-paid,mobilemoney)
Ini:alsuccesscreatedmorefragmenta:onofeMoneyecosystem,andlackofinteroperabilityforcedconsumertoperform
interoperabilitybythemselves:cashingout
BanksandtheCentralBankdidn’tbenefitmuchfrom
prolifera:onofeMoneybuthastobearthecostofhandling
morecash,andtheregulatoryrisk
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Solu:on:eCurrency(secureinteroperableinstrument)
ExchangemoneyunitineMoneysystemwitheCurrencysecureinstrument
andsimpleAPIforsecuri:za:on
eCurrencyallowsthedesignatedissuer(canbetheCentralBankordesignated
bank(s)thatismanagingthereservefortheeMoneyproviders),tomangethe
supply,provideliquidityandobserveeCurrencyflow
Benefitforbanks:Abilitytomanageliquidity,performinstantreconcilia:on,
compliance,lesscashuseduetointeroperability
BenefitforeMoneyproviders:lesscashoutlets,compliancebe^eruser
experienceandsecurityagainstinsidera^ack
FinTechcompanies:anynewinnova:onFinTecheMoneysolu:oncanbe
addedtotheeco-system
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eCurrency:GovernanceTechnology
Legal
IssuedbyCentralBank
andcanbedistributedby
allFinancialIns:tu:onsabideby
exis:ngrulesandregula:ons
Governance
Technology
FinTech
Past
Wire ACH
Debit Card
Mobile BC/Blockchain
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Future
ComparisonBetweenRolesandResponsibili:es
Central Bank
- Regulation, legal
tender status
X9/ISO
- Standard on protocol,
API and security
Commercial Bank
- Distribution
- Liquidity/risk
Payment Network
- Lookup, routing
- Messaging
Mobile/Card/Web
payment
- Customer acquisition
- KYC/AML
Consumer
- Conduct transaction
Dept of Transport
- Regulation
- Crash test etc
ISO
- Standard on size,
lock, strength etc
DOT
Container port
- Transshipment
- Inventory management
Freight company
- Scheduling
- Routing
Truck/Train/Ship
route
- Bill of lading
- Security of goods
Consumer/Business
- Conduct transaction
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eCurrencyDistribu:onFramework
Secure
Instrument
CentralBank
RootPlate
Governance
&Monitoring
Issuance
Dashboard
CommercialBank
DigitalFiat
Currency
Distributors
eCurrencyPlates
ElectronicMoney
ElectronicMoney
Issuers(EMI’s)
Issuers(EMI’s)
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Logosforillustra:ononly
Productdeployedinthefieldinmul:plecountries
SecureIssuance
SecureDistribu:on
SecureMonitoring
Mature
•  Refinedthroughcarefuldesign,con:nuoustes:ngandsuccessfuldeployments
•  3yearsinthemaking
•  Version3.3opera:ngflawlesslysincedeployment
Secure
• 
• 
• 
• 
Scalable
•  Testedtosupportmul:plelargeoperatorsathundredsoftransac:onspersecondeach
•  Scalablefurtheronmul:pleaxes
Reliable
• 
• 
• 
• 
Supportable
•  Engineeredwithopera:onsandsupportinmind
•  InstrumentedandITmonitored24x7
Securitybuilt-inatthecoreofthesystem
ClearlydefinedboundarybetweencurrencyandIT
Clearlydefinedboundarybetweenonlineandofflinesystems
Bestinclass,auditedprocessesforkeycrea:onanddistribu:on
Highlyredundantwithhotfailover
Extensivelysoakandloadtested
De-centralizedwithhighdegreeofautonomyperoperator
SupportsDisasterRecoverypercustomerpolicies
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Govern,SuperviseandMonitor
I
Governance,Supervision
andControl
Issuer
Real-:meData
Securely
Electronic
Electronic
Monitored
MoneyIssuers
MoneyIssuers
Transac:ons
(PPI’s)
(EMI’s)
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Logosforillustra:ononly
Complianceandregulatorytechnologyatwork
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eCurrencyPropertyandValueProposi:on
Central
issuance
authority
Plajorm
agnos:c/
Integratewith
anysystems
Complete
turnkey
capability
Scalableand
reliable
plajorm
Interoperable
value
Transparent/
real-:me
visibility
Highlysecured/
an:-counterfeit
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Clarifica:onofSomeImportantTerms
Digital
Currency
Distributed
Ledger
Blockchain
Shopping
Site
Product
“What”
Cloud
Service
Architecture
“How”
Mysql
Oracle
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Technology
Components
“How”
eCurrency:AInclusiveGovernanceTechnology
CentralizedLedger
DistributedLedger(DL)
eCurrencyenables:
-instantse^lement
-wholesaleandretaildistribu:on
-interoperability
eCurrencyenables:
-Interledgerse^lement
-interoperabilitywithnon-DL
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DigitalFiatCurrencyforall:Examplefor
PermissionedBlockchainInterface
Freshtransac:onsubmi^edtoconsensusengine
Hashofthistransac:on,hashofprevioustransac:on,Payerinitcryptoplx,signature,amount,
payeeaddress
Submi^edviaAPItoeCurrencyplate
Returnedtoconsensusengine
Hashofthistransac:on,hashofprevioustransac:on,Payerfinalcryptoplx,signature,amount,
payeeaddress,payeecryptoplx
Consensusenginetoincludeintonextblock
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eCurrency:OpenAPIforAllFinTech
Began talking to Central
Bank gather requirements
designed architecture
2011
2013
Began integrating Banks as
eCurrency grows in eMoney
systems, payment networks
Began developing and
testing eCurrency product
over Mobile money system in
multiple countries
2015
2016
Today we are working with
X9/ISO digital currency
security group to move it
forward
Thorough Open API for Banks and eMoney provider, Open
GP API for Apps, we are building an open Digital Fiat
Currency ecosystem for everyone and now.
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H^ps://www.ecurrency.net
david.w@ecurrency.net
H^ps://x9.org
H^ps://www.ecurrency.net/whitepaper.ps
h^ps://www.amazon.com/Box-ShippingContainer-Smaller-Economy/dp/
0691136408
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