A powepoint presentation on my thesis at MIS Dept. University of Dhaka

1. E-MONEY

2. Submitted to:
Md. Abul Kashem
Associate Professor& Chairman
Department of MIS,
University of Dhaka.
Presented By:
Zakaria Hasan (61324-17-006)

3. Presentation
On
Thesis Report
On
Electronic Money (E-Money)
Department of Management Information
Systems (MIS)
Faculty of Business Studies
University of Dhaka

4. Currency
 The term ‘currency’ is derived from the Middle English
word ‘curraunt’, meaning “in circulation”
 Currency is what most people think money is!
 Currency is a tangible concept that is based on the
intangible money
 Currency is the promissory note or coin that is presented in
form of money
 Currency is what brings money to life

5. Currency Vs. Money
 'Money' and 'currency' should not be used
interchangeably
 Money is unreal, meaning imaginary, intangible
 Currency is NOT money, but merely represents money

6. Money
 Everyone uses money. We all want it, work for it and
think about it
 Money is what we use every day to pay our liabilities,
and this includes currency
 Money is a store of value and maintains its purchasing
power over a long period of time
 Four basic functions:
- Medium of Exchange
- Store of Value
- Standard of Deferred Payment
- Unit of Account

7. History of Money
Bartering &
Exchange
Cowrey Shells
(1200 B.C.)
Metals(1000
B.C.)
Paper
Money
(1000
A.D.)
Coins (600 B.C.)
Banking
in
Europe
(1400
A.D.)
Wampum
(1637)
The Gold
Standard
(1816)
Credit Card
(1950)
Plastic Money
(1990s)
Google Wallet &
Clear Exchange
(2011)

9. Types of Money
 The major types of money are:
1. Commodity Money
2. Representative Money
3. Standard Money
4. Receipt Money
5. Fractional Money
6. Token Money
7. Coins & Coinage
8. Fiduciary Money
9. Paper Money
10. Fiat Money
11. Commercial Bank Money
12. Electronic Money (E-Money)

10. E-Money
 Electronic Money
 Electronic money is money which exists only in banking
computer systems and is not held in any physical form
 Electronic money, or e-money, is the money balance
recorded electronically on a stored-value card
 It may refers to several systems which enable a buyer to
pay electronically by transmitting a unique number (called
digital certificate) similar to a banknote number.
 In economic terms electronic money is monetary value
provided by the issuer on demand, expressed in
government or private monetary units stored in electronic
form on an electronic device.

11. Types of E-Money
 Hard Vs. Soft E-Money
-Hard Electronic Money does not allow reversing
charges i.e. it supports only Non – Reversible transaction
-Soft Electronic Money allows payment reversals. The
payment is reversed only in case of dispute or fraud.
 Identified and Unidentified E-Money
-Identified E-money, such as credit card transactions, is a
form of e-money that allows the user who withdraws the
money to be tracked. It allows banks to track the
payment throughout the economy. Unidentified money
can be withdrawn from the bank and used like paper
money.
 Online and Off-line E-Money
-Online means we need to interact with bank to do a
transaction with a third party. Offline means we can do a
transaction without having to directly involve a bank.

12. Some Cryptocurrencies…….

13. Different Systems of E-Money
 Electronic Money includes four different systems
namely:
1. Centralized Systems,
2. Decentralized Systems,
3. Mobile sub-systems/Digital Wallets,
4. Offline Anonymous Systems.

14. Centralized Systems
 Many systems—such as PayPal, eCash, WebMoney,
Payoneer, cashU, and Hub Culture's Ven will sell their
electronic currency directly to the end user.
 Other systems only sell through third party digital
currency exchangers.

15. Decentralized Systems
 Bitcoin
 Monero
 Litecoin
 Ripple Monetary System
 Dogecoin
 Nxt

16. Bit Coin
 Bitcoin is a digital asset and a payment system invented
by Satoshi Nakamoto, who published the invention in
2008 and released it as open-source software in 2009
 The system is peer-to-peer; users can transact directly
without needing an intermediary
 Transactions are verified by network nodes and
recorded in a public distributed ledger called the block
chain.
 The ledger uses bitcoin as its unit of account. The
system works without a central repository or single
administrator, which has led the U.S. Treasury to
categorize bitcoin as a decentralized virtual currency.
 Bitcoin is often called the first cryptocurrency

19. Monero
 Monero (XMR) is a cryptocurrency created in April 2014
that is focused on privacy, decentralization and
scalability.
 Unlike many cryptocurrencies that are derivatives of
Bitcoin, Monero is based on the CryptoNote protocol
and possesses significant algorithmic differences
 Monero is an open-source pure proof-of-work
cryptocurrency. It runs on Windows, Mac, Linux and
FreeBSD

20. Litecoin
 Litecoin is a peer-to-peer Internet currency that
enables instant, near-zero cost payments to anyone in
the world.
 Litecoin is an open source, global payment network that
is fully decentralized without any central authorities
 Litecoin was released via an open-source client on
GitHub on October 7, 2011 by Charles Lee, a former
Google employee.

21. Ripple Monetary System
 Ripple is a real-time gross settlement system (RTGS), currency
exchange and remittance network by Ripple.
 Also called the Ripple Transaction Protocol (RTXP) or Ripple
protocol, it is built upon a distributed open source Internet
protocol, consensus ledger and native currency called XRP
(ripples).
 Released in 2012, Ripple purports to enable "secure, instant and
nearly free global financial transactions of any size with no
chargebacks.“
 An RTGS system is a gross settlement system of money or securities
in which both processing and final settlement of funds transfer
instructions can take place continuously

22. Dogecoin
 Dogecoin (/ do k n/ dohzh-koyn, code: DOGE,ˈ ʊʒ ɔɪ
symbol: Ð and D) is a cryptocurrency featuring a
likeness of the Shiba Inu dog from the "Doge" Internet
meme as its logo.
 It was introduced on December 8, 2013. Started as a
"joke currency" in late 2013, Dogecoin quickly
developed its own online community and reached a
capitalization of USD 60 million in January 2014.

23. Nxt
 Nxt is a radically enhanced cryptocurrency built from scratch,
delivering a unique and decentralized financial platform.
 Not only does it open up new possibilities – from digital money
to transfer of shares – but it addresses all of the most serious
deficiencies in existing cryptocurrencies.
 Nxt is an open source cryptocurrency and payment network
launched in November 2013 by anonymous software
developer BCNext.
 It uses proof-of-stake to reach consensus for transactions - as
such there is a static money supply and, unlike bitcoin, no
mining.

24. Mobile Sub-Systems/ Digital Wallet
 A number of electronic money systems use contactless
payment transfer in order to facilitate easy payment
and give the payee more confidence in not letting go of
their electronic wallet during the transaction.
 In 1994 Mondex and National Westminster Bank
provided an 'electronic purse' or to residents of Swindon
 On September 9th, 2014 Apple Pay was announced at
the iPhone 6 event. In October 2014 it was released as
an update to work on iPhone 6 and Apple Watch. It is
very similar to Google Wallet, but for Apple devices
only.
 GNU Taler is an anonymous, open source electronic
payment system currently (September 2015) in
development.
 BKasH is the leading payment system in Bangladesh

26. Payment system of E-Money
 The payment system of E-money is an international
terminal network. Major components are:
i. Operator/ network provider
ii. Distributor
iii. Money Transport Organization

27. Comparison
Advantages
 Privacy & Confidentiality
 Security
 Environment Friendly
 Mobility
 Anonymity
 Record of Transactions
Disadvantages
 Fraud
 The double spending of
digital coins
 Complexity
 Security
 Laws and regulations
 Mass Exposure
 Cross Transactions

28. Security Measures of E- Money
 Encryption
 IT infrastructure
 Complexity
 Deep Web
 IT Knowledge
 Availability of Information

29. Future of the E-Money

30. Recommendations
 E-Money reduces overall cost of operation drastically
compare to Paper money
 E-Money is more environment friendly as there is no need
of paper and no paper means no cutting down tree.
 As the technology is new, there are some security and
stability concern about “E-Money” which are controllable
in most of the case.
 There should be some legal guidelines and law about e-
money to prevent money laundering and other unethical
uses of e-money.
 Banks and Financial Institutes and Government should
come forward and work along with the Tech-Giants such
as Google, Apple, Microsoft, Facebook etc. to develop
the revolutionary but secured and stable transaction
system using “E-Money.”