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DEDICATION

This work is dedicated to author’s soul mate Sapna who passed away in 1989. She has been his inspiration even during fighting deepest blue moments of his life.


IPR Declaration and Copyright Notice

Author is pursuing IPR for some of the ideas described

in this presentation.

Contents in this presentation are copyright protected.

All rights reserved. For reproduction in any medium

(such as print, electronic), please contact



Definition: Hard Currency Hard Currency came as common denominator for

valuation of different things such as products, services,

fixed assets, living beings (animals, trees) etc.

Hard currency is untraceable, which creates various

problems as mentioned in further slides.


Issues Due To Hard Currency 1 Terrorism

Various reports of Financial Action Task Force

(www.fatf-gafi.org) suggest that earnings from money

laundering and drugs funds it. This is difficult to trace.

It’s evident from various incidents of terrorism that

detection mechanism in our system is insufficient to

avoid it.


Issues Due To Hard Currency 2 AIDS is spreading as prostitution is major source of it.

Containing prostitution has been near to impossible

since ages.

Hard Currency is used to pay sexual workers, and big

dons protecting them, which is difficult to trace.

Partners cannot know about the cheating of their

fellow partners.


Issues Due To Hard Currency 3 Illegally printed Currency Bills

It’s near to impossible for a common person to differentiate between legal and illegal currency bills.

With currency bills of large denominator, the illegal

printing of currency bills is very lucrative.

Various detecting/reporting mechanism are

insufficient for containing it.


Issues Due To Hard Currency 4 Tax loss due to unreported cash transactions.

This requires bureaucrats for inspection etc which

opens up another avenues for corruption and problem

keeps growing.

It has not been possible to enforce the issuance of

reportable receipts for every business transaction in

various geographic regions.


Issues Due To Hard Currency 5 Bribery

Corruption keeps growing.

Adulteration even for medicines etc in different

geographic regions.

Everyone complains but no-one wants to take the lead.

Where to start?


Issues Due To Hard Currency 6 Most of the money earned illegally is kept in the form

which contributes almost nothing to growth of

economy.

Estimating the black economy is near to impossible.

It is impossible to make effective economic policies.


Issues Due To Hard Currency 7 Unlawful activities on the internet (spamming,

phishing).

Endless cycles of security mechanism for it.

Internet was designed by purists but it is being

punished for impurity in humans.


Summary of Issues With Hard Currency

We will be always in N+1 cycle of security, till we hit

the problem at the motivation level.

Can we design a knife to cut vegetables only (Not the

neck of humans)?

We have economy where GDP is not reflected in

quality of life of citizens.

We have been trying to fix the problem by detecting in

our system, instead of avoiding it.


VISION – Complete Digital World

Every entity(person/business) dealing in hard currency will be associated/having computing devices (such as cell phones) capable of doing business transactions. With the advent of complete digital world connected with mobile devices, the common denominator of valuation can be dealt only in computing devices further referred as soft earning units (SEU). Conversely, it is the application which will eliminate the digital/communication divide.


Communication Facts about World

Population: 6,602,224,175 (July 2007 est.)

Population growth rate: 1.167% (2007 est.)

Telephones lines in use: 1,263,367,600 (2005)

Mobile Users: 2,168,433,600 (2005)

Internet users: 1,018,057,389 (2005)

-Source

https://www.cia.gov/library/publications/theworld-

factbook/print/xx.html

< Above data was taken in 07>


Mobility Facts and Trends People are now calling people, not places.

Mobile penetration is as high as 70% in several developed countries.

Mobile telephony is still growing in developing countries Offers easy reach to masses without infrastructure build-out requirements

Metropolitan cities are encouraging free IP based hot spots.

More than 1/3 of world population is connected with mobile. Contactless Payment technology is in trial in various markets.


Effects of Soft Earning Units Parallel Economy of bad guys becomes traceable.

Attacks problem at the root (i.e. motivation level).

Safer society and effectively manageable economy.

Ease of use

Environment friendly no need of papers to print

currency and no need of metals for coins

Obsoletes ATM, partially current financial systems.

No need of some of anti-X products.

Nobody can deny its effects on the public forums.


A Historical Case Study Mohammad Tuglak (~1300), An Indian king tried to

exchange the gold/silver coins with copper. People

melted their household pots to generate fake currency

and used gold/silver coins for ornaments. Scheme

failed!

Here fake SEU cannot be generated as it is

protected by different authorization, security

schemes etc. Keeping hard currency is just waste

paper with no alternate usage.


Threat Scenario 1 Gang of bad guys can still hold the hard currency and

they can exchange it for their illegal acts.

Bad Guys will not be able to use it publically for any

other products/services. The big DON of the gang will

end up having a lot of hard currency which (s)he

cannot use. This practice will diminish slowly as

currency notes have their own life time.

Do we see old coins ?


Threat Scenario 2 If demand exists for hard currency due to bad guys,

then it can be printed illegally.

This situation exists today with hard currency

also. SEU makes this situation better as fake

hard currency will not be accepted openly.


Threat Scenario 3 People can do bad work in geographic region which

has adopted SEU but exchange the currencies in other

geographic region which has not adopted it.

This practice is in use with hard currency also.

How many people can travel to use it and will have

access to open the account in that geographic

region? Dealing in non-SEU can be tracked at the

boot-strap time itself, when somebody visits that

region.


Threat Scenario 4 People start consuming services/products etc offered

by others for the bad work.

Humans have tendency to lie. Products have

expiration time limit and there is biological limit on

consumption. Services require need of it within some

time interval.

This will create chaos similar to which might have

given birth to hard currency. To avoid this case

completely, Complete Multimedia Recording is

needed.


Challenges 1 Powerful bad politicians. They can put hindrances

behind the scenes.

Politicians cannot say anything publically against

the soft earning units and they have to adhere to

public opinions or power regime will be changed

by public.

US President (Mr Barack H Obama) & Khosla Ventures (Mr Vinod Khosla) creating issues for it!!


Challenges 2 Hindu Followers may ask for cash, as it is donated in

Hindu Temples /Worships at homes.

Earlier gold/silver coins were used, which are not

used now. So they adopted to changes earlier.

Checks dealing in soft earning units for this

purpose can be used to give the same sense of

feeling. Or soft earning units transfer using SIP

AOR or Cell number for them.


Challenges 3 Beggars Hopefully immense energy of human resources will be channelized in more meaningful ways to solve other problems and this practice will be abolished from the society. (Remember various bad social practices have been abolished) Even if it remains, They have to advertise their

SIP AOR or Cell number for collection Or collect

checks in the SEU.


Challenges 4 Vending machines

They have to advertise their charging entity’s SIP AOR

or Cell phone number of the charging entity. They

need to be upgraded in view of RFID and are in

process of deployment for accepting credit cards.

RFID and SEU upgrade can be clubbed together.

Credit cards will be switched at the back end to

deal in SEU.


Challenges 5 Privacy Advocates

Why third party needs to know about their earnings

and spending patterns ?

They use credit cards and direct deposits etc to

banks. They know about their earnings and

spending in the hard currency case too. Situation

is not changing drastically.


Challenges 6 100% proven availability of mobile infrastructure is

needed, as currency is used for life saving such as

buying medicines etc.

Till we reach to 100% proven availability,

credit/debit card, checks dealing in SEU can be

used as alternate mode of payment for

transaction done via computing devices (in case

of unavailability of mobile infrastructure for

transactions).


Migration Path 1 Hard Currencies will be taken by regulatory body and

they will be translated to SEU of that geographic

region.

Values of fixed assets like real estate etc will be

converted to SEU.

After the announced point of time, hard currency

within that region will not be used.


Migration Path 2 There will be time intervals when Some geographic

regions will be dealing in SEU only and others dealing

in their hard currency.

The current currency conversion system will be

applied during this interval .


Reason For People To Vote For It Everybody wants to be honest and fair. But nobody

wants to take a lead, as (s)he feels others are using bad

methods to earn the money, so why (s)he should be

deprived. Others should stop first.

Here at a SINGLE POINT of time, hard currency

will be gone within a geographic region and

Everybody will be honest with SEU. Big chunk of

the people who want to be good will become

advocate of this change.


NEXT STEPS Provide your valuable feedback/support for the

proposed change.

Thank you for your time and efforts.

Hoping to hear from you!

- Samir Srivastava



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