New virtual money. Virtual currencies and virtual exchanges in the world. The history of the emergence of electronic money

27.04.2022

Since the advent of virtual money, which was considered exclusively a game currency for the corresponding software, a lot has changed. People seeking anonymity, privacy, have been tirelessly looking for ways to make encrypted payments. This meant hiding both the participants in the exchange and the very fact of transactions.

Research was carried out in several directions at once. Since 1992, cryptography has become the subject of study by specialists seeking to ensure the confidentiality of communication in general. During this period of time, the first cryptophones appeared, messengers with a special encryption method began to be developed. By 1998, one of the fundamental concepts was formulated, following which: there was a way to make payments between anonymous users.

In parallel with this, new payment systems developed, along with electronic money. But the defined structure kept in touch with the bank. Then, as the goal of "anonymous" was to achieve not only confidentiality, but also the ability to safely make payments, bypassing the public financial sector. After the invention of the "blind signature" by David Chaumu in 2003, the process accelerated. In 2008, the global financial crisis allowed the emergence of a digital currency - bitcoin.

The direction developed quite quickly, as a result, it became obvious that the emerging monetary unit of the Internet would not be alone for long. There are already alternative cryptocurrencies. Some of them even managed to compromise. This is Ethereum, the open source fragment of which has been replaced. Subsequently, the planned emergence of new platforms with a huge number of startups remained to work at The Dao. But alternatively, Ethereum Classic continues to function.

Popularity of new money: parameters for comparison

It seems necessary to note a few important points:

cryptocurrency keeps the accumulation of money as a priority, but not their use for mutual settlements;
varieties of virtual funds do not have the goal of crowding out alternative solutions;
the weakening of the network effect, which was obvious in the early stages of existence.

At the same time, the situation is changing rapidly, for some six months, bitcoin managed to make dozens of ascents and no less falls. But the increase in the nominal price was more convincing than its decrease. Low predictability and the possibility of a sharp collapse should probably already be attributed to the obvious disadvantages of cryptocurrencies. Meanwhile, bitcoin retains an undeniably leading position among similar money produced on the basis of blockchain technologies. This is expressed by capitalization. Bitcoin is dozens of times ahead of its closest “competitors”: Ethereum and Litecoin.

However, the final comparison of popularity takes place according to parameters that are somewhat unusual for ordinary people. Among them, for example, are:

the number of nodes (nodes) of the system;
number of transactions per day;
registration of new users.

In terms of the number of transactions, the platform is ahead, which in terms of the amount of capitalization is not even among the top three - Ripple. The second is occupied by bitcoin, the third by The Dao. Only 3% of all operations within the systems are taken over by other platforms.

Signs of cryptocurrencies

Digital money produced or sold on the basis of blockchains is analyzed by banking structures. The main features of cryptocurrencies include the following:

possession of monetary properties (accumulation, use as payment);
detachment from the central government of all states, not subject to specific institutions;
non-banking nature of development and circulation.

Several banks at once define cryptocurrencies as something that has value and can be used alternatively to money. Going deeper into quoting various sources does not give any changes, but allows you to more finely grade cryptocurrencies. Additionally, feel the difference between other types of virtual, electronic and fiat money.

An important difference between cryptocurrencies and digital money is the decentralized management of funds produced on the basis of blockchain technologies. Then, as the existence of digital money with centralized management, remains a reality. Users have to grasp this fine line between the two.

For some clarity, we note that a convertible virtual currency can be either centralized or not. But non-convertible can only be managed by an administrator or other regulatory body. Nothing to the contrary is yet known.

Out of all informational citation, the description provided by the OECD stands out. The authors, in addition to much already listed, highlight the fact that blockchain technology controls the sale process. Thus, the same unit (or part of it) will not be sold to two or more users at the same time. However, the name of the seller remains anonymous.

Remain open questions on the issue of new money. They can be produced by users through a complex algorithm, cryptographic replaces the trust in the emitter of funds. This approach preserves decentralization. The units produced are dependent on the power used by the machines.

The following questions are also fundamental:

code openness;
availability of its study for all participants of the private market;
maintaining the principle of equality between users of one system;
bitcoin (or other similar currency) may be a means of payment, but has no legal status.

But all of the above, and especially the last point, indirectly or directly suggests that the "new" currency does not yet have a specific meaning. So far, when talking about it, comparative characteristics are more often used, tending to combine 2-3, and sometimes more concepts.

This is confirmed by the systematic recognition of cryptocurrencies. In Japan it is digital money, for Americans it is securities. However, none of the countries managed to bring bitcoins and similar monetary units under the legislative base.

Deeper differences between cryptocurrency and electronic money

The fundamental difference lies in the methods and subject of emission. Cryptocurrency is produced directly by the user with a predetermined volume and name (bitcoin, ethereum, etc.). It is important that the bank does not do this, the unit is divided into shares. Electronic money is issued not as such, but in the currency of the state that controls a particular payment system.

The next important parameter is the possibility of making payments. Here, the comparison is not in favor of cryptocurrencies, since a preliminary exchange for fiat money is required. Electronic analogy allows you to pay without additional transactions within the framework of many selling projects: shops, ticket offices, hotel reservations, cars, etc.

A significant difference can be traced in a number of ways, including the following:

personification;
availability of viewing operations;
quotation;
transfer of funds (within the network or to personal accounts of other payment systems);
degree of protection (possibility of risky operations);
the height of commissions for transactions;
other.

Despite all these differences, some analysts draw parallels that make electronic and virtual money similar:

a) the realized desire of market participants to use cryptocurrencies for making payments or savings;
b) users of one network recognize the developed settlement mechanism;
c) striving to achieve validity.

However, the embodiment of the desired is realized differently, different financial institutions and instruments are involved. Electronic and virtual money through transactions allow you to pay for goods through transactions, bypassing the direct exchange of money.

But in the first case, the process is regulated by some financial institution with a full range of related services. It implies a staff, specialized equipment (cash registers, acquirers, etc.).

Cryptocurrencies are not centrally controlled. With electronic money, payments are made to the address of the operator. For a virtual analogue, one is either not identified, more often it is absent altogether. The operator is replaced by exchanges, commercial platforms, exchange offices.

Well, and the final difference, which is considered especially frightening:

the cost of electronic money is equal to the national currency, provided by law;
the price of bitcoins and derivatives is the equivalent of the nominated unit in another currency unit.

Many features of cryptocurrencies cause simultaneous interest and wariness. The desire for anonymity, attempts to make the circulation of currency liquid only within closed financial "ecosystems", give rise to talk about the legality of using virtual money.

Already today, within the framework of the existing Fintechs, an almost political event took place in relation to cryptocurrencies. Visa and Mastercard were excluded from the newly created system due to their foreign origin.

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Introduction

Chapter 1. What is electronic money

Chapter 2. Varieties of virtual money

Chapter 3. Advantages of electronic money

Chapter 4. Disadvantages of electronic money

Chapter 5. Ways to use electronic money

Chapter 6. Electronic Wallets

Chapter 7. Problems of introducing virtual money

Chapter 8. Electronic money - a world without borders

Conclusion

Introduction

The Internet already has almost everything that a person may need. Goods, services, communication, self-expression, games, etc. Of course, you have to pay for some services, and the faster and simpler the payment system, the better. Both sellers and buyers began to feel the need for such a payment system. That is why electronic money was invented. Non-cash money was invented relatively recently. With their appearance, they made the same revolution that paper money caused in past centuries, which quickly replaced metal coins. The rapid development of computer technology suggests that "electronic" non-cash money may soon completely replace cash.

The task of any type of electronic money is to create a universal payment environment that unites buyers and sellers of goods and services. The purpose of electronic money is to increase the economic efficiency of the Internet as an industry as a whole. The mechanism of electronic money is such that it allows, without leaving the computer, to pay for goods, conclude transactions, and conduct commercial activities. Electronic money is very similar to electronic payment cards, only you do not have a card and a PIN code, but a login and password with which you can make money transactions. Also, at any time, you can withdraw money from the network or enter it into the network through a bank, postal order, cash, credit card, etc.

Chapter 1. What is electronic money

Electronic money is the financial obligations of the issuer in electronic form, which are on an electronic medium at the disposal of the user. Such monetary obligations meet the following three criteria:

· Recorded and stored on electronic media.

· Issued by the issuer upon receipt from other persons of funds in an amount not less than the issued monetary value.

· Accepted as a means of payment by organizations other than the issuer.

The term "electronic money" is relatively new and is often applied to a wide range of payment instruments that are based on innovative technical solutions. The consequence of this is the lack of a single, globally recognized definition of electronic money, which would unambiguously define their economic and legal essence.

Electronic money is characterized by an internal contradiction - on the one hand, they are a means of payment, on the other hand, the obligation of the issuer, which must be fulfilled in traditional non-electronic money. Such a paradox can be explained with the help of a historical analogy: at one time, banknotes were also considered as an obligation payable in coins or precious metals. Obviously, over time, electronic money will be one of the varieties of the form of money (coins, banknotes, non-cash money and electronic money). It is also obvious that in the future Central Banks will issue electronic money, just as now they mint coins and print banknotes.

A common misconception is the identification of electronic money with non-cash money.

Electronic money, being a non-personalized payment product, may have a separate circulation, different from the banking circulation of money, however, it can also be circulated in state or banking payment systems.

As a rule, the circulation of electronic money occurs with the help of computer networks, the Internet, payment cards, electronic wallets and devices that work with payment cards (ATMs, POS-terminals, payment kiosks, etc.). Also, other payment instruments of various forms are used: bracelets, key rings, mobile phone blocks, etc., which have a special payment chip.

Electronic money fully simulates real money. At the same time, the issuing organization - the issuer - issues their electronic counterparts, called differently in different systems (for example, coupons). Further, they are bought by users who use them to pay for purchases, and then the seller redeems them from the issuer. When issuing, each monetary unit is certified by an electronic seal, which is checked by the issuing structure before redemption.

One of the features of physical money is its anonymity, that is, it does not indicate who used it and when. Some systems, by analogy, allow the customer to receive electronic cash in such a way that the relationship between him and the money cannot be determined. This is done using a blind signature scheme.

It is also worth noting that when using electronic money, there is no need for authentication, since the system is based on issuing money into circulation before using it. (see Figure 1. Payment with digital money).

Different systems offer different exchange schemes. Some open special accounts to which funds are transferred from the buyer's account in exchange for electronic banknotes. Some banks may issue electronic cash themselves. At the same time, it is issued only at the request of the client, with its subsequent transfer to the computer or card of this client and the withdrawal of the cash equivalent from his account. When implementing a blind signature, the buyer himself creates electronic banknotes, sends them to the bank, where, when real money is credited to the account, they are certified with a seal and sent back to the client.

Figure 1. Payment with digital money

Chapter 2. Varieties of virtual money

Electronic money is usually divided into two types: based on smart cards (English card-based) and based on networks (English network-based). Both the first and second groups are divided into anonymous (non-personalized) systems, in which it is allowed to carry out operations without user identification and non-anonymous (personalized) systems requiring mandatory user identification.

Currently, smart cards issued by non-banking organizations and allowing payment transactions are quite widespread. These are telephone, transport, medical and other cards. However, most of them are single-purpose, that is, they allow you to pay for services (goods) only in favor of one company. As soon as it becomes possible to pay, for example, with a telephone card or public transport card for goods or services of other companies, for example, in a supermarket, such a payment instrument becomes electronic money.

It is also necessary to distinguish between electronic fiat money and electronic non-fiat money. Electronic fiat money is necessarily expressed in one of the state currencies and is a kind of monetary units of the payment system of one of the states. The state by law obliges all citizens to accept fiat money for payment. Accordingly, the emission, circulation and redemption of electronic fiat money takes place according to the rules of national legislation, Central Banks or other state regulators. Electronic non-fiat money - are electronic units of value of non-state payment systems. Accordingly, the emission, circulation and redemption (exchange for fiat money) of electronic non-fiat money occur according to the rules of non-state payment systems. The degree of control and regulation by government agencies of such payment systems in different countries varies greatly. Often, non-state payment systems tie their electronic non-fiat money to the rates of world currencies, but the states do not ensure the reliability and real value of such units of value. Electronic non-fiat money is a type of credit money.

One of the most common mistakes is to classify modern means of accessing a bank account as electronic money, namely, traditional bank payment cards (both microprocessor and magnetic stripe), as well as Internet banking. In systems that carry out settlements with electronic money, bank accounts are used only when entering and withdrawing money from the system. In this case, the consolidated bank account of the issuer of electronic money is used, and not card or current accounts of users. When issuing electronic money, traditional money is credited to the consolidated bank account of the issuer. When electronic money is presented for redemption, traditional money is debited from the issuer's consolidated bank account.

Another typical mistake is to classify prepaid single-purpose cards as electronic money, such as gift cards, fuel cards, telephone cards, etc. Using such a payment instrument does not mean making a new payment. The real payment is made at the time of purchase or replenishment of such a card. Its use does not generate new cash flows and is a simple exchange of information about consumed goods or services.

Chapter 3. Advantages of electronic money

Electronic money is especially useful and convenient when making mass payments of small amounts. For example, when paying in transport, cinemas, clubs, paying utility bills, paying various fines, making payments on the Internet, etc. The process of paying with electronic money is fast, there are no queues, there is no need to give change, money is transferred from the payer to the recipient quickly .

Electronic money is most correctly compared with cash, since the circulation of non-cash money is necessarily personified and the details of both parties are known. In the case of payments by electronic money, it is enough to know the details of the recipient of the money.

Electronic money has the following advantages over cash:

· excellent divisibility and combineability - when making a payment, there is no need for change;

high portability - the value of the amount is not related to the overall or weight dimensions of money, as is the case with cash;

very low cost of issuing electronic money - no need to mint coins and print banknotes, use metals, paper, paints, etc.;

no need to physically count the money, this function is transferred to the storage instrument or payment instrument;

· it is easier than in the case of cash to organize the physical protection of electronic money;

the moment of payment is recorded by electronic systems, the impact of the human factor is reduced;

· when paying through a fiscalized acquiring device, it is impossible for a merchant to hide funds from taxation;

· electronic money does not need to be counted, packaged, transported and organized in special storage facilities;

· ideal persistence - electronic money does not lose its qualities over time;

· perfect qualitative homogeneity - individual copies of electronic money do not have unique properties (such as scratches on coins);

· security - protection from theft, counterfeiting, denomination changes, etc., is provided by cryptographic and electronic means.

Chapter 4. Disadvantages of electronic money

· lack of well-established legal regulation - many states have not yet decided on their unambiguous attitude to electronic money;

· despite excellent portability, electronic money needs special storage and circulation tools;

· as in the case of cash, when the electronic money carrier is physically destroyed, it is impossible to restore the monetary value to the owner;

· there is no recognition - without special electronic devices it is impossible to easily and quickly determine what kind of object, amount, etc.;

Impossibility of direct transfer of part of the money from one payer to another;

· means of cryptographic protection by which electronic money systems are protected do not yet have a long history of successful operation;

· theoretically, interested parties may try to track the personal data of payers and the circulation of electronic money outside the banking system;

· security (protection against theft, forgery, denomination change, etc.) - not confirmed by wide circulation and unproblematic history;

· Theft of electronic money is theoretically possible, using innovative methods, using insufficient maturity of protection technologies.

Chapter 5. Ways to use electronic money

Plastic cards and their types

A plastic card is a general term that refers to all types of cards that differ in purpose, in the set of services provided with their help, in their technical capabilities and organizations.

A plastic card is a plate of standard sizes (85.6 mm 53.9 mm 0.76 mm) made of a special plastic that is resistant to mechanical and thermal influences. One of the main functions of a plastic card is to ensure the identification of the person using it as a subject of the payment system. To do this, the logos of the issuing bank and the payment system serving the card, the name of the cardholder, his account number, the expiration date of the card, etc. are applied to the plastic card. In addition, the card may contain a photograph of the holder and his signature. Alphanumeric data - name, account number, etc. - can be embossed, i.e. printed in embossed type. This makes it possible, when manually processing cards accepted for payment, to quickly transfer data to a check using a special device, an imprinter, which "rolls" the card (in exactly the same way as a second copy is obtained when using carbon paper).

The graphical data enables visual identification of the card. Cards, the service of which is based on this principle, can be successfully used in small local systems - like club cards, store cards, etc. However, for use in the banking payment system, visual "processing" is clearly not enough. It seems appropriate to store the data on the card in a form that ensures the automatic authorization procedure. This problem can be solved using various physical mechanisms.

On cards with a barcode as an identifying element, a bar code is used, similar to the code used for labeling goods. Typically, the code strip is coated with an opaque compound and the code is read in infrared light. Barcode cards are very cheap and relatively easy to manufacture compared to other types of cards. The latter feature causes their weak protection against forgery and therefore makes them unsuitable for use in payment systems.

Magnetic stripe cards are by far the most common - there are over two billion cards of this type in circulation. The magnetic strip is located on the back of the card and, according to the ISO 7811 standard, consists of three tracks. Of these, the first two are designed to store identification data, and the third one can record information (for example, the current value of the debit card limit). However, due to the low reliability of the repeatedly repeated writing/reading process, recording on a magnetic stripe, as a rule, is not practiced, and such cards are used only in the information reading mode. The security of magnetic stripe cards is significantly higher than that of barcode cards. However, this type of card is also relatively vulnerable to fraud. Thus, in the United States in 1992, the total damage from fraud with magnetic stripe credit cards (excluding losses with bank machines) exceeded one billion dollars. Nevertheless, the developed infrastructure of existing payment systems and, first of all, the world leaders in the "card" business - VISA and MasterCard / Europay companies is the reason for the intensive use of magnetic stripe cards today. Note that to increase the security of VISA and MasterCard/Europay cards, additional graphic security tools are used: holograms and non-standard fonts for embossing.

On the front side of a card with a magnetic stripe, it is usually indicated: the logo of the issuing bank, the logo of the payment system, the card number (the first 6 digits are the bank code, the next 9 are the bank card number, the last digit is the control, the last four digits are printed on the hologram), the term card actions, cardholder's name; on the reverse side - a magnetic strip, a place for a signature.

In smart cards the information carrier is already a microcircuit. For the simplest existing smart cards - memory cards - the amount of memory can be from 32 bytes to 16 kilobytes. This memory can be implemented either in the form of EPROM (EPROM), which allows one-time write and multiple reading, or in the form of EEPROM (EEPROM), which allows both multiple reading and multiple writing. Memory cards are divided into two types: with unprotected (fully accessible) and protected memory. In the cards of the first type, there are no restrictions on reading and writing data. The availability of all memory makes them convenient for modeling arbitrary data structures, which is important in some applications. Secure memory cards have an identification data area and one or more application areas. The identification area of the cards allows only a single entry during personalization, and in the future it is available only for reading. Access to application areas is regulated and carried out upon presentation of the corresponding key. The level of security of memory cards is higher than that of magnetic cards, and they can be used in applications where the financial risks associated with fraud are relatively small. As for the cost of memory cards, they are more expensive than magnetic cards. However, in recent years, their prices have declined significantly due to the improvement of technology and the growth of production volumes. The cost of a memory card directly depends on the cost of the microcircuit, which in turn is determined by the memory capacity.

A special case of memory cards are counter cards, in which the value stored in memory can only change by a fixed amount. Such cards are used in specialized prepaid applications (payment for the use of a pay phone, payment for parking, etc.)

Microprocessor cards are, in fact, microcomputers and contain all the relevant main hardware components: the central processing unit, RAM, ROM, PROM, EEPROM. The parameters of the most powerful modern microprocessor cards are comparable to the characteristics of personal computers of the early eighties. The operating system stored in the ROM of the microprocessor card is fundamentally no different from the PC operating system and provides a wide range of service operations and security features. The operating system supports a file system based on EEPROM (usually in the range of 1 to 8 KB, but can be as large as 64 KB) that regulates access to data. At the same time, part of the data can only be accessed by the internal programs of the card, which, together with the built-in cryptographic tools, makes the microprocessor card a highly secure tool that can be used in financial applications that place high demands on information protection. That is why microprocessor cards (and smart cards in general) are currently considered the most promising type of plastic cards. In addition, smart cards are the most promising type of plastic cards also in terms of functionality. The computational capabilities of smart cards make it possible to use, for example, the same card both in operations with on-line authorization and as a multi-currency electronic wallet. Their widespread use in VISA and Europay/MasterCard systems will begin in the next year or two, and within a decade, smart cards should completely replace magnetic stripe cards (at least, those are the plans...).

In addition to the types of plastic cards described above used in financial applications, there are a number of cards based on other data storage mechanisms. Such cards (optical, induction, etc.) are used in medical systems, security systems, etc.

Chapter 6. Electronic Wallets

electronic money plastic card

A program installed on a computer and used to store electronic cash and make payments with them is called a wallet. The payment system (more about the PS - in section 6) "PayCash" also operates with the concept of an account - your account contains money that you deposited into the system, but have not yet been exchanged for electronic cash.

The current legal mechanisms allow various payment systems to work within the framework of the current Russian legislation. All electronic payment systems are based on the use of either payment cards or "electronic purse (or wallet)". If there is a Regulation of the Bank of Russia No. 23-P dated April 9, 1998 “On the procedure for issuing bank cards by credit institutions and making settlements for transactions made using them”, which sets out the mechanism for card payments, then wallets should be discussed in more detail .

It is desirable to put something in this wallet. Well, what is a wallet without money?! Naturally, money will lie there - this is exactly the very serious misconception that led to the circulation of the term "electronic money". Not money is placed in an electronic wallet, but only their electronic value. The money remained in the bank or in the company that issued this wallet. After all, no one will argue that a telephone card or a magnetic metro ticket are money. Everyone understands perfectly well that this is only a means to use certain services. And these mechanisms allow you to use prepaid services. The same is true with an electronic wallet. It should be considered as a prepaid financial product. Moreover, it is in this form that our legislation gives it the right to exist. Bank of Russia Ordinance No. 277-U, dated July 3, 1998, “On the Procedure for Issuing Registration Certificates to Resident Credit Institutions for Issuing Prepaid Financial Products”.

In such cases, we should talk about electronic payments or electronic value as the electronic equivalent of ordinary money placed on a payment card or in an electronic wallet on a computer hard drive.

The electronic value is still tied to the account, regardless of whether it is a bank account or similar services are provided by a non-bank organization. Funds are placed on this account, and the client is transferred to the card or electronic wallet the equivalent electronic value of these funds, and then he uses them for his intended purpose. Moreover, when making calculations or, more precisely, transferring the electronic value, the movement of the funds themselves does not occur. Real money is either exchanged for electronic value, at the time of its presentation, collected by the seller for goods or services sold, or a kind of clearing of transactions occurs in which electronic value is involved.

All Russian electronic payment systems necessarily use bank accounts. And already from this account, the electronic value is transferred, first to the buyer's wallet, and then to the seller for the purchased goods. Money still remains in bank accounts and banks make settlements for their customers.

Digital money, which is just some information, can be stored on any storage medium, in particular, on the hard drive of a desktop computer or laptop, floppy disk, smart card, which at the same time turn into an electronic wallet.

A new technical development in this area is Dai Nippon Printing Co Ltd's planned mass production in May 2004 of the "wallet of the future" - a compact device for electronic money and tickets. The device measures 6.2 x 3.2 x 1.7 cm, weighs 20 g, and is actually a miniature computer with a 16-bit CPU and a four-line black and white LCD screen that allows you to make payments and check balances over the Internet. The device can work with different SIM-cards. The expected price of the device is from 50 to 100 USD and it is planned to release 1 million units during this year.

Chapter 7. Problems of introducing virtual money

The central banks of most countries are very wary of the development of electronic money, fearing uncontrolled emission and other possible abuses; although electronic cash can provide a host of benefits, such as speed and ease of use, greater security, lower transaction fees, new business opportunities with the transfer of economic activity to the Internet. There are many controversial issues regarding the introduction of electronic money. The introduction of electronic currencies raises a number of issues, such as fundamentally unresolved problems in collecting taxes, ensuring emission, the lack of standards for ensuring the emission and circulation of electronic non-fiat money, and concerns about the use of electronic payment systems for money laundering.

Quite complex technologies are used for the circulation of electronic money, and commercial banks are not always willing and able to independently develop new products.

The main reasons for the reluctance of banks to develop projects related to electronic money are:

· the need to finance developments, the fruits of which can be used by competitors;

· Difficulties in cooperation with other banks in order to share the costs of innovative developments;

Cannibalization of already existing banking products with new ones;

lack of qualified specialists in their own staff;

Uncertainty about the reliability of outsourcers.

Against the backdrop of problems with the implementation of "electronic money" projects by commercial banks, a lot of small projects and start-ups appear on the market, the main problems of which at the moment are:

· extremely small size of the real market of "electronic money";

· Priority focus of legislation in the field of payment systems on the banking industry;

· Regulators' unwillingness to let non-bank companies into the payment systems market;

· a large number of competing and poorly oriented technologies for their consumers and the lack of standards.

Obviously, the problems of the new "electronic money" market can be solved by a long evolutionary path or with the help of large infrastructure projects initiated by states (for example, the Russian National System of Payment Cards or the Ukrainian NSMEP).

Chapter 8. Electronic money - a world without borders

A multi-level system will make it easy to send money from a village in the wilds of Paraguay to a Siberian village, will allow you to establish financial connections between any people on Earth, wherever they are, will turn all Humanity into a single financial society.

The world opened for money will become open for people, for goods, for ideas, for any communication. It is electronic money that will fulfill the age-old dream of Mankind about uniting people. It is electronic money that will eliminate all borders, turn borders into cartographic concepts, and then, perhaps, eliminate them altogether.

A person will be able to freely go to any point on the Earth with just one card in his pocket and find food and shelter, entertainment and everything he needs, of course, if there is money on this card, more precisely, on a bank account that is controlled by a card. . Just money. Not American or Japanese money. And in the future, one can imagine that the card itself will not be required, the bank account number can be written on the palm of an invisible and indelible paint, identification of a person and his account will be carried out by a papillary pattern on his finger.

It can be assumed that no passports and registrations will be needed, the bank account number will become the only identifier of a person's identity, and the identifier is unique, the only identifier from birth to death and even after death.

All his banking transactions - his purchases, receipts and other financial movements for a certain time can be stored in the bank.

Thus, in the 21st century the world is entering the era of not a legal, but a financial society. It will no longer be a right to control the behavior of an individual, which you need to know, you need to understand, you need to read and remember something somewhere. In the era of electronic money, most violations will simply be impossible simply because a computer will not let them through. If drugs are illegal, then you can't buy them simply because the computer won't let through a payment from an individual to a drug manufacturer. If it is forbidden for private individuals to purchase some dangerous products - radioactive substances, poisons, weapons, etc., then an individual will not be able to purchase them, because the payment from an individual to manufacturing enterprises or suppliers will simply be blocked in the bank computer. And that which cannot be paid for, cannot be possessed. Of course, some master can make a scarecrow for himself, but it is clear that such "crime" does not threaten society in any way, just as a dozen boys running through the subway without a coin do not pose any danger or financial damage to the subway. So small crime is not at all dangerous to society, rather it is even useful, the main thing is that there are no opportunities for mass crime, it will be eliminated by electronic money.

So, electronic money is a society of freedom, a society in which a person is free to move around the world - not only a white person from North America and Western Europe, but any person on Earth. This is a society of truly equal people in the sense that the limits of behavior are set, in fact, by a computer that cannot be bribed or appeased, that is not capable of making any distinctions between people - be it a janitor or a president, where your rights do not depend on an official, which may or may not allow. Everything is extremely simple here. The computer program forbids this action - it will be forbidden, and any pleas, "approaches" and bribes are powerless to persuade him. So we really see that the idea of a rule of law is the yesterday of human civilization, the 21st century is not the century of law, but the century of financial regulation of human behavior through soulless universal unified algorithms, financial prohibition, creating the widest scope for permissible actions. This is the kind of freedom in front of which the freedoms of a rule of law state will seem like real slavery and bureaucratic despotism. A person feels offended if he knows that he can, but it is impossible, since a person or a circular forbid. And he cannot be offended by a car, no one is offended by a turnstile in the subway, which does not let him through without a token. Such is the difference between legal (juridical) and financial social arrangements.

Conclusion

So, it is clear that electronic money is a very flexible tool that allows you to expand the scope of cash. With their help, it is also easy to lend money to a friend (and at a distance) and use it in everyday "non-electronic" life, as well as pay for a purchase on the Internet or set up your own business there.

Only Electronic money can provide micropayments - so necessary for the information business and the sale of publications. Such electronic money can be marked for special use (only for movies, for example), which is very convenient for controlling money in a family.

The cost of a transaction using electronic money and its processing and accounting is much cheaper than the cost of processing traditional money, credit cards and checks and other means of payment. The processing of electronic money is easier, and its use can seriously change the structure of banks and reduce staff.

Electronic money, unlike check and credit systems, allows you to maintain the anonymity of transactions (to one degree or another), since they do not require identification of the payer and his creditworthiness when using them.

Unlike traditional cash, payment with electronic money does not require the presence of the payer and the recipient, since the transfer can be done remotely via the Internet or by phone.

Bibliography:

1) http://www.money.ru/publish/s05.htm

2) http://www.3dnews.ru

3) http://ru.wikipedia.org/wiki/Electronic_money

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Bitcoin mining faucets

A faucet is a site where you can go and get some bitcoins for free. Yes, absolutely free, but I want to note that this amount is quite small.

Most faucets will give you around 200 Satoshi per hour. One Satoshi is 0.00000001 BTC. This is a very small amount, but if you use several sites to earn money and attract referrals, then earnings can be much larger.

The most famous faucet for earning virtual currency Bitcoin is Freebitco.in. I talked about how to create a wallet and register on this site to earn money in a previous article, more on that below.

Various earning systems using faucets

This method carries a certain risk of spending all the mined Bitcoins, but this will increase the speed of earnings and in the future you will be able to automatically receive a decent amount of BTC, I also want to note that we received these 200 Satoshi for free, so why not use them wisely?

Virtual money, cryptocurrency, bitcoins - this is not just a seemingly dubious income for many, but also our near future. Already today, the Central Bank of the Russian Federation has begun work on creating a virtual national currency. However, first things first.

What is virtual currency

Virtual (game) money, cryptocurrency - digital means of payment that are used for settlement in virtual stores, as well as in social networks and online games for the purchase of:

special gift-pictures, stickers, rating increase;
a certain status on the site or in the game, as well as expanding their user capabilities;
artifacts, weapons, characters, equipment, "lives" in the game, etc.

Already in 2009, the gaming portal Zynga reported that during this year alone virtual money and similar goods were purchased from him for a total of $ 100 million.

In the report "Cryptomoney Schemes" (2012) of the European Central Bank, virtual currency is interpreted as a kind of digital means of payment not regulated by the state, created, controlled by developers and accepted by members of a certain virtual community.

FinCEN (Financial Crimes Commission) of the US Department of the Treasury, under the Bank Secrecy Act, cites the following differences between cryptocurrency and real money:

is not legal tender;
in most cases does not apply;
is convertible if it has a real money equivalent.

Benefits of virtual money

Virtual currency has a significant number of advantages over the usual means of payment:

Convertibility. Transferring a certain amount from one cryptocurrency to another is a simple and quick process that can be done on your smartphone while on the go. At the same time, without even thinking about the commission.
Safety. It is almost impossible to fake, because it is protected by a rather sophisticated digital cipher. If the user complies with all registration rules, even an experienced hacker will not be able to hack an e-wallet account in a payment system.
Availability. Electronic systems, unlike banks, operate around the clock. And you can instantly transfer through them the most various amounts of money both to your neighbor and to a person located on the other side of the globe.
Rapidity. Electronic money transfers are made almost instantly, regardless of the amount and distance of the sender from you. Moreover, they are not accompanied by any fees and commissions.

Risks of virtual currencies

At the same time, the list of obvious disadvantages of electronic money is quite extensive:

For financial systems of states:
- the likelihood of terrorist financing;
- "money laundering;
- the risk of committing financial crimes;
- may be used as a means of payment for the sale of prohibited goods.
For owners of electronic wallets:
- unfavorable rates when converting to real money;
- fraud in conversion operations;
- the likelihood of hacking an electronic wallet;
- inaccessibility of the wallet account in case of loss of a secret digital key to it, PIN code, etc.;
- loss of savings due to the bankruptcy of the exchange site;
- instability of the cryptocurrency exchange rate;
- a small number of stores that are ready to accept this means of payment.

Cryptocurrency regulation

It must be said that world governments were not enthusiastic about the growing popularity of virtual currency, responding to it with very harsh methods:

In 2013, the Central Bank of China banned local operators from serving online exchanges trading in bitcoins (the most famous cryptocurrency today, which we will definitely consider below), which reduced the cost of the latter by 38%.
In the same year, the Indian Central Bank actually suspended the work on the territory of the state of one of the largest exchanges for transactions with virtual money in this country - Bitcoin Buysellbitco.in.
In 2014, the Central Bank of the Russian Federation called transactions for the transfer of real money into cryptocurrency potentially doubtful: in the event of the bankruptcy of the exchange platform or the loss of access to the electronic wallet, the state, according to the law, will not be able to protect the citizen.

Famous world cryptocurrencies

The list of virtual currency traditionally begins, which was presented in 2009 by a developer hiding under the pseudonym Satoshi Nakamoto. At the beginning of 2013, one bitcoin was valued at $20, and in November of the same year it was $323. At the end of 2013, one bitcoin was equivalent to $1000, and in June 2017 - $3000.

Such a "mad" turnover led to the creation of more than 80 clones of this electronic currency, the number of which is steadily growing today:

zeuscoin;
worldcoin;
peercoin;
hobonickel;
fireflycoin;
gridcoin and more. others

The Amazon online store in the same 2013 distinguished itself by introducing its own Amazon Coins currency for its Amazon Appstore and a number of child applications, the unit of which is equivalent to the United States. However, you can pay with such electronic coins only within Amazon.

The main competitor of bitcoin on exchanges is litecoin, a project of software engineer Charlie Lee. According to the creator, transactions with his brainchild are 4 times faster than with bitcoin.

Bitcoin - what is it?

To understand the features of all crypto-money, let's consider, for example, the virtual currency bitcoin, since all the rest are, in fact, copies of it.

bitcoin (English) bit- "bit", "unit of information", coins- "coin"), as well as bitcoin, btc, btc is a digital currency that works and is used only on the Internet. However, it can be used to buy very real goods, services, and even exchange for real money. Bitcoins can be bought or sold on global exchanges just like other currencies.

BTK is distinguished by the following:

Decentralization. No virtual currency bank, no institution in the world controls Bitcoin.
Emission. Bitcoins are issued only in digital form. At the same time, their issue is not the traditional printing of banknotes of the Central Bank, but "extraction" (mining) by ordinary users around the world. The script for issuing bitcoins can be run by anyone on their PC - it is in the public domain.
Security. Unlike real money, BTC is not backed by gold or silver.
Limitation. The bitcoin code allows you to "mine" a maximum of 21 million units of this currency. However, it is divided into components ad infinitum. The smallest unit is named after the creator - Satoshi. It is equal to 0.00000001 btc.
Usage. Starting a bitcoin wallet in the payment system of the same name is a matter of 5 minutes for both an ordinary user and a legal entity.
Anonymity. Creating a bitcoin wallet does not involve entering personal information - no name, no email.
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immediacy translations.
Transaction irrevocable. After sending bitcoins to a specific addressee, only he can return the currency back.
Transparency. If you tell someone the address of your bitcoin account, then this citizen can get acquainted with the entire history of your transfer transactions.

Pros and Cons of Bitcoin

Information about the advantages and disadvantages of the virtual currency - bitcoin - we have placed in the table.

Finally, let's talk about the prospects of cryptocurrencies in our country.

Russian virtual money

In the summer of 2017, the Central Bank of the Russian Federation began to develop a virtual currency for Russia. This was initiated by the meeting of the President of the Russian Federation V.V. Putin with V. Buterin, the creator of the Ethereum cryptocurrency, which the Kremlin calls the second most important after bitcoin. It is predicted that the new Russian cryptocurrency will be based on Buterin's developments.

It will be possible to talk about the first achievements of the project only in 2-3 years. While the Bank of Russia is determined by the principles of regulation of electronic money.

Virtual currency is the money of the future. But even today, the excitement around it does not subside, and quite tangible material value is growing before our eyes, as can be seen in the example of bitcoin. Against this background, the government and the Central Bank of the Russian Federation predict to implement a project to create a national cryptocurrency.

An increasing number of transactions and money transfers around the world are made using the Internet. Payment for utilities, orders in online stores, replenishment of a mobile phone account and even transfer of wages - this is not a complete list of financial transactions carried out using electronic money.

The most popular payment systems among Russian users are YandexMoney and, which have been successfully operating for a fairly long period of time. At the same time, not everyone knows that in the virtual world there is its own currency called "Bitcoin". Bitcoin - what is it in simple words, and how can an ordinary Internet user become its owner?

Bitcoin - how does it work?

Bitcoin is a digital currency that allows you to carry out any financial transactions without restrictions on territorial, financial and other grounds. This currency is not tied to a particular country, and therefore does not obey the rules established by the legislation of a particular state, but at the same time allows you to use it anywhere in the world.

The bitcoin rate does not depend on fluctuations in oil quotes or prices for precious metals, decisions taken by the leadership of any country and other factors that play a very significant role in the formation of national currency rates.

An innovative system of mutual settlements between participants in the trade turnover was created in 2009 by an unknown person (or group of persons) working under the pseudonym Satoshi Nakamoto. In addition to the currency itself and the algorithm for conducting financial transactions, the developers have created a special application that allows you to simplify the procedure for transferring funds as much as possible.

Bitcoin is the world's first payment system that does not depend on external influences, i.e. not obeying the rules and instructions established by various banking and other intermediary organizations. All operations are carried out with the participation of two parties - the seller and the buyer, i.e. money comes from the account of one to the account of another, bypassing third-party organizations that charge a certain commission for their participation in transfers. In essence, bitcoin is a unique mathematical code that is constantly changing and cannot be used twice in mutual settlements.

The bitcoin rate is provided by the demand of users who have a wallet in this payment system. Theoretically, the currency could depreciate in the event that its holders begin to withdraw their stored money to the wallets of other systems, but at present this outcome is unlikely. Now the bitcoin rate is $430 per unit of cryptocurrency, which indicates a very high degree of its reliability.

Benefits of Bitcoin

The main advantages of the payment system are:

its independence from the influence exerted by third-party financial institutions and public authorities;
the ability to use the internal currency of the system in any country in the world;
absolute independence from ;
high degree of protection of the wallet on which electronic funds are stored;
the impossibility of freezing an account in the system by decision of the authorities;
no fees and commissions when making transfers within the system.

How to get bitcoins?

Bitcoin works on the following principle: many computers connected to the system around the world process transactions in real time. With an interval of 10 minutes, some machines participating in the computing race become winners, bringing their owner a profit in the form of virtual money. This process is called mining, and the computers used are called miners. In order to take part in the process of extracting money in this way, you must have a super-powerful server with serious technical characteristics. In addition, competition between cryptocurrency miners is constantly intensifying, which leads to a decrease in the likelihood of obtaining money through mining.

There are other ways to replenish your wallet in the Bitcoin system:

purchase of internal currency for real or virtual money used in other payment systems;
selling a product or service to a consumer for bitcoins.

So, bitcoin is a fundamentally new cryptocurrency, used exclusively for settlements on the Internet, and does not have any security other than user demand. The creator of the payment system that uses bitcoins for settlements is still unknown.