FR3070523A1 - DEMATERIALIZATION OF MONEY (E-EURO) - Google Patents

Abstract

The European Central Bank will issue dematerialized and numbered "coins and notes" called e-euros; each dematerialized element will have a unique number assigned by the Central Bank; electronic denominations of notes and dematerialized coins will display the same face values as physical notes and coins. The numbering is a system managed by the Central Bank which will ensure this unique and non-repeatable referencing.

Description

Currency, coins and notes, is a means of payment still widely used by economic agents. In addition to fiat money, economic agents widely use bank cards, checks which still occupy a significant position (especially in France) and so-called electronic operations such as transfers or direct debits.

The checks are partly materialized, the coins and tickets remain fully materialized. The innovation proposed is the dematerialization of coins and notes and the use of electronic wallet or smartphone to store and use "cash" with other economic agents.

It is not a type of electronic payment with the use of prepaid cards or the use of conventional cards but rather the use of dematerialized coins and tickets.

The innovation makes it possible to reinforce security in the circulation of cash (increasingly weak supply of cash distribution machines, bank branches); less holdup in agencies or in the case of ATMs.

In addition, there is full traceability of the circulation of cash, which will put an end to illicit activity funding.

"Electronic cash" is a major development in the range of payment methods which makes it possible to reduce physical cash, reinforce security and reduce interbank transactions; the instant payment as it is seen today will be replaced by this new means of payment.

THE DEMATERIALIZATION OF CURRENCY (E- €)

Payments today are often at the heart of everything; new players are taking up the subject and proposing new solutions. But very often, these solutions remain attached to conventional payment operations, either with banking players or with payment service providers. The solutions are all based on interbank exchanges, which certainly have strengths but also weaknesses.

Today the French interbank, but also at the European Place are developing the new means of ICT Payments (Instant Credit Transfer) or TIPIS (Target Instant Payment Settlement). But is the proposed solution the right orientation? Will this meet the needs of C2C, C2B or even B2B payments?

The innovation that I propose consists in changing the model, in part. Technology and digitalization now allow fundamental changes to be initiated.

France and Europe have equipped cities and campaigns with ATMs, increasingly sophisticated machines in order, in particular, to reinforce security.

In certain regions or villages far from all shops, the banks close their branches, or even dismantle the only distributors who provided the population with cash.

With the “source” of cash drying up, innovation will make it possible to give everyone access to liquidity as a means of payment while reducing the costs of distributing money and increasing security.

It will maintain fluidity in payments, as when they are made with notes and coins.

There are three major parts to this innovation:

The dematerialization of the currency, the e-euros

The distribution of this dematerialized currency

Payments in e-euro.

In addition, innovation will ensure the traceability of the means of payment, which is not the case today with the materialized cash; this will dry up some sources of illegal funding.

The dematerialization of money: the e-euros

The Central Bank is now issuing banknotes. It can only be the same tomorrow with the e-euros.

Commercial banks will have to acquire e-euros as today these same banks pay the Central Bank for the provision of banknotes in their ATM network or in their bank branches.

Coins and banknotes are dematerialized by the Central Bank in e-euro. E-euros are numbered “tokens”, like real banknotes today. A token is a unique monetary item.

Each e-euro token can be followed throughout the payment cycles, in the exchanges that will take place.

THE DEMATERIALIZATION OF CURRENCY (E- €)

Commercial banks that have received e-euros from the central bank may make them available to their customers.

This is the next step in e-distribution.

The distribution of dematerialized money: e-distribution.

E-distribution is a major advance.

Commercial banks can provide their customers with the e-euros they have acquired from the Central Bank.

This provision makes it possible to withdraw e-euros simply and instantly.

A customer will no longer go to the ATM or bank machine to collect cash but will connect to the site of their bank to get electronic money.

Security is reinforced with regard to attacks by bank agencies or money distributors.

As with distributors, a customer can withdraw “denominations” of e-money, namely different categories of e-tickets.

The tokens acquired become the property of the customer until it is used for the purchase that the customer will make.

The tokens are stored in the customer's electronic wallet, a secure wallet that can be placed on their smartphone or other electronic equipment that the banks could distribute.

Payments in e-euro:

The customer has e-euro stored in his electronic wallet after loading as before after withdrawal in a machine. He must make a payment, whether with an individual or with a company, he will be able to do so in real time; provided that the counterparty has the e-money system.

Payment from individual to individual:

Two people with electronic wallets open to e-money will be able to transfer e-euros immediately.

It's instant like today when someone gives coins or notes to someone else. The transfer of an electronic wallet or, from a smartphone is carried out according to a secure protocol, like contactless payment today (unlocking of e-euros according to the recognition of the imprint or any other biometric means).

THE DEMATERIALIZATION OF CURRENCY (E- €)

Payment by an individual to a merchant:

As today is done in cash with a merchant, the customer and the merchant if they have electronic wallets will be able to issue or receive e-euros.

For the merchant, it could be the Payment Terminal which would be transformed into an acceptor of e-euro.

As from particular to particular, the transfer can be carried out according to contactless technology for example; the merchant's terminal receives the e-euros which it stores as it does today for a payment transaction. Here again, biometrics are used to secure the transaction.

In these two payment cases, there is traceability of the transfer of e-money from one economic agent to another. In addition, there is no interbanking to limit the cost of transactions and have total instantaneity.

Individuals, when paying from person to person, immediately have their euros in their electronic wallet which they can use for all other transactions.

The merchant can dispose of his e- € immediately for all current expenses.

As for the supply of their e-euro wallet, the merchant or the individual can position their electronic cash directly with their bank. It suffices for him to connect to his establishment and an e-euro transfer function will recover the e-currency from the electronic wallet to position it in an account.

The bank can then redistribute electronic cash to any new applicant.

B2B payments

Companies or traders can make their payments directly on the payment sites of their creditors.

For mass payments, today's transfers and direct debits may continue to use current circuits, pending the development of APIs allowing certain payment providers to withdraw e-euros from one economic agent to another. economic agent.

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THE DEMATERIALIZATION OF CURRENCY (E- €)

Claims (14)

1) Device for the dematerialization of coins and notes, characterized in that it is regulated by the Central Bank, which is the only authority empowered to issue money to commercial banks. 2) Device according to claim No. 1 characterized by obtaining dematerialized coins and notes from the Central Bank by commercial banks. 3) Device according to claim no 1 and no 2 characterized by the storage of dematerialized coins and tickets in electronic safes of commercial banks or duly authorized and approved service providers. 4) Device according to claim nol characterized by the referencing of coins and dematerialized tickets single Dafaçon equivalent to the references found today on tickets. 5) Device according to claim No. 3 characterized by the delivery of dematerialized coins and tickets to economic agents by commercial banks 6) Device according to claim No. 5 characterized by the secure storage of coins and notes obtained from the Commercial Bank in an approved smartphone or any other approved electronic wallet. 7) Device according to claim No. 6 characterized by the issuance by the Commercial Bank of an electronic money account, account which traces the movements in electronic money of the economic agent. 8) Device according to claims no 5, no 6 and no 7 characterized by the ability to settle, by the economic agent holding electronic money, any purchase from another economic agent having the capacity to receive in an approved electronic wallet coins and tickets showing the value of the purchase. 9) Device according to claim No. 8 characterized by the ability of the economic agent receiving the coins and notes to remount these coins and notes to his commercial bank, on con account in dematerialized currency (see claim No. 7) 10) Device according to claim No. 9 characterized by the transfer of all or part of the content of the electronic money account to have on the current account of the economic agent; the money thus transferred is stored in the electronic safe of the bank or approved service provider THE DEMATERIALIZATION OF CURRENCY (E- €) 11) Device according to the preceding claims characterized by the safe increase in the circulation of cash; dematerialization will lead to the gradual disappearance of attacks from bank counters, ATMs or store cash registers. 12) Device according to the preceding claims characterized by monitoring transactions made by economic agents, tracking coins and notes at any time with the ability to know where the dematerialized currency is located. 13) Device according to claims 8 and 9 characterized by the simplification of the interbank circuit; it is no longer useful in this payment circuit to carry out exchanges and payments in interbank payment systems (STET for example) 14) Device according to claim No. 5 characterized by openness to economic agents empowered to make payments between them by the ability to transfer or withdraw dematerialized money without interbank exchange.