THE MONEY
ELECTRONIC
CASH
· Computer code replaces
money in a cashless society
David Chaum, the founder of Amsterdam based DigiCash, is largely credited with inventing an electronic cash or e-cash system which transmits money as computer code over the internet. Chaum’s system ensures the safety of transactions through an encryption code he calls ‘blind signatures’, which authenticates payments without revealing the identity of the payer. This both protects the customers from cyber-thieves and acts as protection for the individual’s civil liberties. E-cash is always pre-paid to banks which issue e-cash currency.
· Multi-purpose smart cards
store ID as well as credit
It is estimated that by 2000 there will be one billion smart phone cards being developed by companies, such as the US based Motorola Semiconductor and French computer firm Bull, will contain central processing units, which act as the brains of conventional computers, with short and long-term memory cells. Once the networks of smart card readers are set up, hybrid smart cards, which perform many different functions, will be used in banks, shops, cellular and public telephones and to pay taxes.
· New York tests the e-cash
combined smart card
US banks Citibank and Chase Manhattan, together with credit card companies Visa and MasterCard, are testing a smart card scheme in New York City, USA. Around 50,000 cards with e-cash capabilities will be issued, and about 500 retail outlets and businesses in the city will accept them.
· Fingerprints could be used
instead of pin numbers
As smart cards begin to take on more functions, it is important that they are protected by identity systems. It is likely that the personal pin number system used for bank cards and cash point machines will be replaced by a more sophisticated system.
EXPART SYSTEMS
· The computer program that
predicts the stock market
Pension fund specialists, Pareto Partners of London, UK, is in partnership with Los Angeles based Hughes Electronics a research contractor to the US military to develop an expert artificial intelligence program which has specialist knowledge on how to play the stock market. The Hughes system, called Modular Knowledge Acquisition Toolkit (M-KAT).
· Electronic neural networking
can aid the fiscal analyst
State Street Global Advisors, the third largest investment management firm in the USA, bought the international Florida based company, Advanced Investment Technology (AIT), designers of electronic analyst systems, in 1997. AIT has a system which uses neural networking.
ALTERNATIVE
MONEY SYSTEMS
· Community spends HOURS
instead of dollars
The town of Ithaca, New York State, USA, operates on its own currency system, the HOUR, instead uses the HOUR which is equal to $10, the average pay per hour for work in the county. Residents trade HOURS of work with each other so, for instance.
· Local support found in
township credit system
Community saving schemes, called stokvels, popular in the townships of South Africa, are usually groups of women who pool a part of their monthly salary. Every month one member will receive the total amount pooled; this can be used to start a small business or for home improvements.
· Bangladesh micro loans help
the poorest villagers
In 1976, Bangladeshi economics Prof. Muhammad Yunus started a microloan system for Bangladeshi villagers which has grown into Grameen Bank, an institution which today has 2.2 million borrowers, 94% of whom are women.
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