Title: HAS THE TIME FOR ELECTRONIC CURRENCY COME
Location:
Global
Categories: Globalization
Technology
Peace & Conflict
Status:
In Progress
Timeline:
December 1 03 to January 1 00
Description:
The more civilized, refined, analytical and scientific, that man became, the more refined, sophisticated, systematic and symbolic, became the form of currency. All that a primitive man needed was a hunting knife to satisfy his varied wants. Now that tool has progressed and evolved into the modern-day credit card, with which a man can buy anything he needs. The process of evolution continues into the future with currency changing as the times change.
The present world economic scenario strongly requires the development of alternate modes of currency as a medium of exchange which can match the fast paced, computerized economy. The future is thus in the use of handheld, electronic 'Cash Pads' which will replace paper currency for many day-to-day transactions.
Carefully developed electronic pads can control the happenings of fake currency, any many other type of fraud. It will also have the properties of better durability and dependability than paper cash. It can become true legal tender with almost no chances of black income. Practically every type of financial corruption can be avoided. Through this system, a monitoring body can have full control on the flow of currency (i.e., every deal can be accounted for). Electronic currency will certainly prove to be a scientific & technically competent mode of exchange.
THE ELECTRONIC CURRENCY PAD:
Electronic currency system can be operated through electronic currency pad to be issued to every citizen of the country. Electronic currency pad will be a small handy electronic instrument. This will have besides "on button", buttons from A to Z, Buttons from 0 to 9, payment button, bank payment button, receipt button, bank receipt button, search button and balance button with simple calculation buttons. These pads will have password operating system. Each pad will be assigned a unique code number for identification. These pads will also have screen, speaker, input-output sockets and a cord.
ELECTRONIC CURRENCY PAD
Electronic Currency will function on the principle that every deal/ transaction affects two sides, i.e., one is receipt other is payment (one is receiver another is 'giver', payment maker). This means that when one person is receiving from another, it implies that that another related person is paying. This is how the transaction will take place. Electronic Currency Pads will be fed, through Internet by banks, into their memory transaction codes issued exclusively for that particular pad along with all transaction codes issued to any electronic currency pad with in that country. These transaction codes will be computer generated which will come to be known only at the time of transaction. In this system, every financial transaction will be accounted and reconciled leaving no scope for unaccounted money i.e. black money.
HOW ELECTRONICS CURRENCY PAD WILL FUNCTION?
A. CASH TRANSACTIONS:
Assume X pays Y for some purchases. This transaction will be performed through X's electronic currency pad and Y's electronic currency pad. Here X is payer while Y is receiver. X, on his electronic currency pad, will first switch on by pressing ON Button then will plug cord's one end into his output socket. Y will plug other end of the same cord into his electronic currency pad's input socket after switching on his pad.
Now X will press payment button in his electronic currency pad. On pressing the payment button, immediately transaction code for the proposed transaction will appear in X's pad's screen. X will type the desired amount by typing related numbers under country currency mode and then press payment button. Y, on the other hand, will press receipt button. Now as X presses payment button, Y's electronic currency pad will depict in its screen the amount receivable along with X's transaction code. Now Y's electronic currency pad will verify for the validity of X's transaction code with the Y's electronic currency pad's memory. The memory of electronic currency pad contains, as already explained, transaction codes of the whole country issued to any electronic currency pad anywhere with in the country up to a particular period. These transaction codes will be fed by bank. Now if X's transaction code matches with the transaction codes in Y's electronic currency pad's memory, both X's and Y's electronic currency pad will be updated effecting the transaction. Both X's and Y's electronic currency pads will now be showing updated balance on pressing balance button.
On utilization of the transaction codes, fresh series of transaction codes will be fed into the memory of the electronic currency pad through computer by bank. System should be developed in such a way that transaction code series is periodically updated by the bank. That means electronic currency pad's memory should be periodically updated with transaction codes for smooth functioning. At the time of updating, bank will also update the electronic currency pad's memory with all the transaction codes issued to any electronic currency pad any where with in the country.
B. BANK TRANSACTIONS:
Another present form of payment is payment through bank that means through cheque. In electronic currency pad system, payment through cheque will be like this- X has to pay to Y through cheque. X will press 'bank payment' button on to his electronic currency pad. Immediately, on pressing bank payment button, bank transaction code will appear in X's electronic currency pad's screen. Now assume Y resides in distant place. In this system, X will intimate Y, his bank transaction code together with the payable amount through telephone, fax, Email etc. Y will press Bank Receipt Button on to his electronic currency pad. Y, on knowing the X's bank transaction code, will feed that transaction code into his electronic currency pad along with the receivable amount as conveyed by X. Now system should be designed in such a way that this Bank transaction will be treated as provisional unless updated by the bank. That means updating of Bank transactions, in this system will be effected and balance will be updated only by bank. In this case X will approach his bank intimating about provisional bank transaction, similarly, Y will also approach his bank with his electronic currency pad stating particulars of receipted bank transaction. Now both X's and Y's bank will clear this provisional bank transaction through normal bank clearing procedure and accordingly update, both X's and Y's electronic currency pads and account statement with bank, for balance. This bank clearing will be through Internet for speedy clearance. In this way, Banks can function smoother, efficient and faster. No cheque is to be written, all costs and time relating to handling cheques is saved resulting in quicker business deals with easy realizations.
Alternatively, Electronic Currency Pad can be designed to be operative without cord for electronic currency cash transaction. This improved device does not require input-output sockets also.
Background:
The increasing trend of socio-economic crimes and financial frauds, the problem of inflation, the problem of unemployment, the problem of poverty, the problem of decline in the standard of living of people, the problem of terrorism, the problem of white collar crimes, the problem of counterfeiting of currency, the problem of bank dacoity, the problem of carrying the big amount of cash, the problem of pick pocketing, the problem of credit card/ debit card frauds and other socio-economic problems have led to the evolution of "e-currency system".
Objectives:
IMPACT ON THE ECONOMY
This system will help restricting inflation, all types of financial crimes, bribery, currency fraud, match fixing, terrorism etc. in this system, people will not have to carry *censored*bersome bags full of currency notes, using vehicles for transferring notes from one place to another place. There will not be any fear of getting looted or pick pocketed. There will not be necessity to pay for security of currency and to keep strong rooms for currency notes and to invest in big safe for keeping cash. People will not have to go through the mental exhaustion of counting notes at the time of withdrawal or deposits, taking fidelity insurance and cash insurance and at the end of the day physically verifying cash and tallying with the book balance.
Banks will find themselves in altogether different competitive economic environment. They will not have to beg for deposits as all the peoples' money will always be deposited with the bank. There will not be any need for printing chequebooks, drafts and other related stationery-reducing operating cost to the lowest. Transaction will be possible to any decimals. Minting, printing and paper costs of paper currency will be effectively saved.
Government will have sufficient finance available from internal sources for all kinds of Government expenditure including development expenditure. As all the citizen's money will always be with the banks without hampering their money transaction, banks will find themselves in a position to advance this money deposits to Government or needy people. Government will be able to incur this advanced money for development works and other expenditure. This incurrence of government expenditure will result in people getting increase in their income. This will automatically result in increase in bank deposits for the people. This increased bank deposit base will again enable banks to advance finance to Government and the needy people. This way government will again be in a position to get finance for development works resulting in people getting increased earnings. This process will keep on repeating, resulting in creation and rotation of income cycle making people and ultimately the country richer and self-sufficient. This will also have positive impact on unemployment problem. This can be illustrated as :Let G stands for Government, B stands for Bank and C stands for citizen of country. This is already stated that all citizens'/ Govt.'s money will always be deposited with Banks. Now let us assume to begin with that citizen's have 1000 units of currency as total money. In electronic currency system this 1000 units will always be with bank ie., money can never be withdrawn from the system. 1000 units of money is with Bank say B. As money can never be withdrawn from the system, Bankers will be in position to advance this 1000 units to Govt. /Public/ Business Houses for development/project installation etc. Now this advanced 1000 units will be ultimately transferred to citizens say C in return of the services/labor rendered by the citizens. As citizens will get increase in their earning. Their total money now will be 1000+1000 ie., 2000 units. This means 1000 units now has become 2000 units. As citizens money has increased to 2000 units and all the money will always be deposited with the bank without hampering liquidity of the money, bank deposits will also increase by 1000 units totaling to 2000 units deposit. This will result in increase in bank's capacity to advance money further by 1000 units. Now bank will be in a position to further advance this increased deposit to Government say G. Here is the formation of income cycle. Now this increased/further advance of 1000 units to Govt. will ultimately increase citizen's income by further 1000 units making their total money to 3000 units thereby increasing bank deposits by further 1000 units. This is rotation of income cycle. This process will keep on repeating rotating the income cycle resulting in increase in per capita income/ national income, solving unemployment problem etc.
This way not only electronic currency system can help prevent the various kinds of corruptions and crimes up to a certain extent but it can also help in economic prosperity and autonomy of the country.
In the end, I want to say that it is difficult to see the things clearly in horizon but I definitely see though with the weak eyesight that there is something called 'electronic currency' out there. I am sure that some one with the better vision and with the help of binoculars of computers knowledge will be able to tell the world a more spectacular narrative.
Through this work I request scholarly minds of economics and computer savvy brains to come forward and search the possibilities and the practicability of this idea i.e., 'electronic currency'.
Milestones:
1. Getting the book on e-currency system published by South carolina, U.S.A., based publisher, Book Surge, an Amazon.com Company.
2. Article on e-currency system published in the prestigious U.K. leicester university, School of management journal "International Journal Of Community Currency research" in the year 2005.
3. An Essay on e-currency system published by famous World Future Society,U.S.A., Global Strategies Forum.
4. Getting hardware prototype developed.
5. Getting Software Developed.
Needs:
Electronic Device(Currency Pads), Software to be developed
Contact Name: Ashish Sharma
Contact Email Address: ashishsharma08@rediffmail.com
Contact Phone Number: +91 94140 74183
Tags:
You must be logged in to add tags.
|
Menu
About
Testimonials
