Electronic Money (Micromoney)
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Transcript of Electronic Money (Micromoney)
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Electronic Money(Micromoney)
Luis Enrique Heredia Figueroa
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Agenda
Concept First and Current Implementations
Smart Card Based Systems- Open System- Close System
Alternative Systems Software Based Systems
Evolution, future approaches General Issues Conclusions
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Concept
Money exchanged eletronically involving microprocessors
computer networks, internet and digital stored values.
Two General FormsCard BasedSoftware Based
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First and Current Implementations
Smart Cards
Generally defined as a portable data storage device with intelligence (chip memory) and provisions for identity and security.
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First and Current Implementations
Some History… 1970 - First implementation of microelectronic devices
in plastic substrate (Kunitaka Arimura) 1974 - First patent “An independent electronic object
with memory” (Roland Moreno). 1979 – First smart card by Honeywell Bull 1980’s First Trials in France
French Bank Card Association (Blue Card, Green Card, TA) University Cards in France
Date Information took from The Changing Face of Money, Good Barbara
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First and Current Implementations
Smart Card (Open System)
The scheme allows the value on the card to be used in the same manner as any other payments method or form currently in the specific place.
Promblems for wide development: Need for terminal to process transactions, clearing and settlement system.
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First and Current Implementations
Unaccounted Electronic Money ModelTransactions closely proximate to cash
onesAim to provide universal cash
replacementWithout a full audit trail
Mondex Card
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First and Current Implementations
Accounted Electronic Money Model
Provide a general audit trail Archiving FunctionsDoes not permit the anonymity of
incorporate it into the Web browsers
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First and Current Implementations
Graph took from The Changing Face of Money, Good Barbara
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First and Current Implementations
Smart Cards (Closed System)
A stored-value card that only can be used for one purpose or only in one determined environment.
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First and Current Implementations
Octopus Card
Singapore (Public Transportation payment)
Chipknip
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Octopus Card
Rechargeable without contact stored value smart card (mass transit system in Hong Kong)
Nowadays convenience stores, supermarkets, parking meters, vending machines, etc.
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Off-line Electronic Money
The merchant does not need to interact with the bank before accepting a user’s coin.
Merchant guaranteed that the user’s e-coin will be accepted by the bank (the bank is able to identify cheating user).
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Off-line Electronic Money
Blind Signatures to achieve unlikability between withdrawal and spend transactions.
Using cryptographyAnonymous e-cash was Introduced by David Chaum
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Alternative Systems: Software Based Systems
Main Topic: Internet
Several Schemes devised to make purchases secure over the Internet
Security: Main concern for the method developers
Open Network MasterCard and Visa agreement
for SET (Secure Electronic Transactions) standard (1996)
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Alternative Systems: Software Based Systems
Digital Gold Currency
Paypal
Liberty Reserve
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Evolution, future approaches
Objectives
Turn it able to use it through wider range of hardware such as secured credit cards
Linked bank accounts for exchange with a secure micropayment system (Paypal)
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In General…
Advantages:
Convenience Privacy Increased efficency of transactions Lower transaction fees New business opportunities
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In General…
Disadvantages
How to levy taxesPossible facility of money launderingExchange rate instabilitiesShortage of money supplies
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Conclusion
At the end, it is necessary to search the more suitable cyberspace and microprocessor use regulations or laws that manage the transactions and watch for signs of trouble to help this new concept that seems to be the next step in business development, generally speaking.
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THANK YOU FOR YOUR ATTENTION