Digital Cash Research Articles

Best Before? Expiring Central Bank Digital Currency and Loss Recovery

AbstractPhysical cash enables payments in the absence of electricity or network coverage. Such offline payment functionality promotes the operational resilience and, particularly in developing countries, the accessibility of payments. Central banks are exploring issuing digital cash substitutes with similar offline payment functionality. Such substitutes could incorporate novel features, making them more desirable than physical cash. This paper considers automating personal loss recovery for offline digital currency balances through the introduction of an expiry date. Our results show this functionality could have a substantial positive impact on consumer demand for offline digital currency balances. We find an asymmetric impact on welfare of adjustments to the expiry date: small increases from the optimum cause little damage, but small decreases from the optimal expiry date can have a large negative impact. More information‐sharing between user devices and the central bank can improve loss recovery but has an ambiguous impact on social welfare.

O PLANEJAMENTO TRIBUTÁRIO DO PRODUTOR RURAL PESSOA FÍSICA: UMA ANÁLISE SOBRE A EVASÃO FISCAL

The agribusiness is one of the most relevant sectors in the economy. In 2022, it represented 24.3% of the Brazilian GDP. Due to its complex production chain, the stage within the gate is essential, as it represents rural activities focused on agriculture and livestock farming. In these activities, rural producers make crucial decisions related to plant and animal production and the allocation of resources for these activities. The general objective of this study is to present tax planning for individual rural producers within the gate as a strategy to avoid the hypothesis of tax evasion. To achieve this, the specific objectives are to conceptualize tax planning applied to individual rural producers, present the strategic use of tax planning for individual rural producers within the gate, and analyze tax evasion by individual rural producers. The methodological approach is based on logical-semantic constructivism, being a qualitative study with bibliographic, legal, and documentary research as instruments. As results, tax planning, or fiscal avoidance, was conceptualized as a strategic tool that uses legal means to reduce the tax burden. As a tool for individual rural producers, it requires continuous effort for its full implementation, as it is embedded in the complex scenario of sector management and taxation. The study also presents tax evasion considering the incidence of Income Tax (IR), Rural Territorial Property Tax (ITR), Circulation of Goods and Services Tax (ICMS), Social Integration Program (PIS), Contribution to Social Security Financing (COFINS), and Rural Worker Assistance Fund (FUNRURAL) on individual rural producers and their ancillary obligations, highlighting the Digital Cash Book of the Rural Producer (LCDPR), eSocial, and EFD-Reinf.

Determinant factors for online cash waqf intention among Muslim millennial generation

Purpose This study aims to examine the factors influencing the intention of Muslim Millennial Generation in Indonesia to donate cash waqf digitally. Design/methodology/approach A quantitative approach was employed, surveying 284 Muslim Millennial Generation in Indonesia. The study integrated the Decomposed Theory of Planned Behavior (DTPB) and Technology Acceptance Model (TAM) to investigate the key factors driving the intention to contribute to cash waqf digitally. The researcher analyzed data using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings The findings of this study indicate that all hypotheses related to the variables are supported, including both direct and indirect correlations, except for perceived religiosity. This study confirms that the decision of millennials to donate cash waqf online is influenced by various factors, including their attitudes, the environment they are in, their ability to control their behavior, their perception of the ease and usefulness of technology and the availability of suitable facilities. Knowledge of technology is also a decisive component. Nevertheless, this study yielded intriguing findings that the perceived level of religious devotion does not impact the millennials’ willingness to make online cash waqf donations. Practical implications This study’s findings offer valuable insights for waqf institutions, providing a better understanding of Muslim millennials’ characteristics and preferences regarding spending, donations and waqf activities. This understanding can be instrumental in enhancing innovative digital platforms for cash waqf in the digital economy era. Originality/value This study uniquely explores the determinants of digital cash waqf donations among Muslim Millennial Generation in Indonesia. Contributions include integrating the DTPB and the TAM for a comprehensive analysis. Cross-disciplinary perspectives from behavioral economics and digital marketing enrich the research. Comparative studies and potential longitudinal analysis enhance depth, providing nuanced insights into the dynamic factors shaping digital donation behavior among Muslim millennials.

Network Based Feature Extraction Method for Fraud Detection Using Label Propagation

Abstract: Nowadays, judging the current transaction based on user history transactions is an important detection method. However, different users have different transaction behaviors, when all users use the same limit to judge whether the transaction is abnormal, it will result in higher misjudgment for some users. Aiming at the above problems, this paper proposes an individual behavior transaction detection method based on hypersphere model. In this model, considering multiple dimensions of normal historical transaction records, the characteristics of user’s transaction behavior is generated with the trend of transaction. Then, the user optimal risk threshold algorithm is proposed to determine the optimal risk threshold for each user. Finally combining the transaction behavior and the optimal risk threshold, the user behavior benchmark is formed, which is used to construct the multidimensional hypersphere model. On this basis, a mapping method for transforming transaction detection into midpoint in multidimensional space is proposed. The experiment proves that the proposed method is superior to other models, and it is found that the characterization effect of user behavior is related to the frequency of users’ transactions. Applied computing → Secure online transactions; Digital cash; Computing methodologies → Instance-based learning; Rule learning

Digital Currencies in Light of Artificial Intelligence, Effects and Negatives: Iraq is An Example

The digital monetary system in the modern era is based on money. It occupies a leading position in economic studies and in all current economic transactions. It is a digital cash system, an advanced system for electronic money that was invented by unknown parties in 2008. The main goal behind its invention was to get rid of the capitalist system and the official authorities’ control over the issuance of digital currencies and to come up with a new technology that, with its technological confidence, replaces the role of control and supervision in central banks, that is, in light of artificial intelligence. Dealing with it has been banned in Iraq because it leaves effects and problems on the economic level that cannot be easily overcome. This topic was addressed through two sections. The first dealt with research into encrypted digital currencies in terms of their economic nature, while we devoted the second section to researching and clarifying how to invest in them and their negative and positive economic effects digital currencies electronic money, artificial intelligence.

A blockchain technology for improving financial flows in humanitarian supply chains: benefits and challenges

Purpose This study aims to determine how the applications of blockchain technology (BT) can play a crucial role in managing financial flows in the humanitarian supply chain (HSC) and what benefits and challenges are associated with BT in a humanitarian setting. Design/methodology/approach The present study used a qualitative research approach, incorporating a systematic literature review and conducting semi-structured interviews with 12 experts in the fields of humanitarian operations, supply chain management, fintech and information technology. Findings The findings show that the humanitarian sector has the potential to reap significant benefits from BT, including secure data exchange, efficient SCM, streamlined donor financing, cost-effective financial transactions, smooth digital cash flow management and the facilitation of cash programs and crowdfunding. Despite the promising prospects, this study also illuminated various challenges associated with the application of BT in the HSC. Key challenges identified include scalability issues, high cost and resource requirements, lack of network reliability, data privacy, supply chain integration, knowledge and training gaps, regulatory frameworks and ethical considerations. Moreover, the study highlighted the importance of implementing mitigation strategies to address the challenges effectively. Research limitations/implications The present study is confined to exploring the benefits, challenges and corresponding mitigation strategies. The research uses a semi-structured interview method as the primary research approach. Originality/value This study adds to the existing body of knowledge concerning BT and HSC by explaining the pivotal role of BT in improving the financial flow within HSC. Moreover, it addresses a notable research gap, as there is a scarcity of studies that holistically cover the expert perspectives on benefits, challenges and strategies related to blockchain applications for effective financial flows within humanitarian settings. Consequently, this study seeks to bridge this knowledge gap and provide valuable insights into this critical area.

A Study of Electronic Banking in India

Digital cash and online transactions in the current market scenario have a great effect on e-banking and digital banking. E-banking comprises mainly of electronic funds transfer and usage of online banking services. Electronic banking was offered by the international banks initially since flow of digital cash was not predominant in the Indian market until the advent of demonetization. E-banking plays a major role in the present banking functionality. Electronic banking is inferred to be safe and secured, compared to physical banking. e-banking ensures qualitative banking operations compared to traditional banking. However, it has its own limitations and challenges when we talk about security, on the contrary. After visually perceiving the growth rate of e-banking services it can be verbalized that e-banking is accepted in the banking sector and an abundance of work can be done in this sector to make it more advance, safe and more accommodation provider in finance sector.

Transformation of cash waqf management in Indonesia: Insights into the development of digitalization

Purpose – This study intends to provide an in-depth explanation of the importance of transforming cash waqf management in Indonesia through a digitalization platform.Methodology – This research was library research. The data collection techniques used in this study were literature review and documentation. Data analysis techniques are in the form of content analysis. The stages of content analysis in this research were carried out by determining the problem, compiling a framework of thought, compiling methodological tools, analyzing literature data, and interpreting the data that have been obtained.Findings – The findings of this study suggest that cash waqf innovation through digital platforms has proven to be an applicable solution. The transformation of cash waqf management through digital platforms has proven to accelerate the growth of waqf assets and the benefits of waqf for the improvement of community welfare and to increase public knowledge and awareness of cash waqf. The constraints of digital cash waqf development in Indonesia are the lack of qualified and professional nazirs and human resources, strong business network for digital cash waqf development, digital cash waqf socialization among the public, and popularity of digital waqf institutions.Implications – This research is useful for improving the transformation of cash waqf management through digitalization, which has demanded collaboration and synergy between the Indonesian government and Zakat institutions.Originality – This study examined the digital transformation model of cash waqf management in Indonesia.

Is Monetary Policy a Driver of Cryptocurrencies? Evidence from a Structural Break GARCH-MIDAS Approach

The introduction of Bitcoin as a distributed peer-to-peer digital cash in 2008 and its first recorded real transaction in 2010 served the function of a medium of exchange, transforming the financial landscape by offering a decentralized, peer-to-peer alternative to conventional monetary systems. This study investigates the intricate relationship between cryptocurrencies and monetary policy, with a particular focus on their long-term volatility dynamics. We enhance the GARCH-MIDAS (Mixed Data Sampling) through the adoption of the SB-GARCH-MIDAS (Structural Break Mixed Data Sampling) to analyze the daily returns of three prominent cryptocurrencies (Bitcoin, Binance Coin, and XRP) alongside monthly monetary policy data from the USA and South Africa with respect to potential presence of a structural break in the monetary policy, which provided us with two GARCH-MIDAS models. As of 30 June 2022, the most recent data observation for all samples are noted, although it is essential to acknowledge that the data sample time range varies due to differences in cryptocurrency data accessibility. Our research incorporates model confidence set (MCS) procedures and assesses model performance using various metrics, including AIC, BIC, MSE, and QLIKE, supplemented by comprehensive residual diagnostics. Notably, our analysis reveals that the SB-GARCH-MIDAS model outperforms others in forecasting cryptocurrency volatility. Furthermore, we uncover that, in contrast to their younger counterparts, the long-term volatility of older cryptocurrencies is sensitive to structural breaks in exogenous variables. Our study sheds light on the diversification within the cryptocurrency space, shaped by technological characteristics and temporal considerations, and provides practical insights, emphasizing the importance of incorporating monetary policy in assessing cryptocurrency volatility. The implications of our study extend to portfolio management with dynamic consideration, offering valuable insights for investors and decision-makers, which underscores the significance of considering both cryptocurrency types and the economic context of host countries.

<span>The Impacts of Receiving a Digital Cash Transfer on Financial Deepening: Evidence from Daviplata</span>

<span>The Impacts of Receiving a Digital Cash Transfer on Financial Deepening: Evidence from Daviplata</span>

The Effects of Social Distancing Measures on COVID-19 Spreads in European Countries

Abstract This study investigates the effects of social distancing measures on various types of social mobility, using country- and day-fixed effects on a panel of daily data comprising 29 European countries. Although social distancing measures proved to be significant for all types of mobility in the examined period, they are best captured by retail and recreation mobility. Linear effects of restrictive measures on COVID-19 cases and deaths are examined by OLS regression with country- and day-fixed effects on a panel of 29 European countries, while non-linear effects were investigated by quantile regressions. Stricter mobility restrictions significantly reduced COVID-19 cases and deaths, but the variant of the virus was also an important determinant. Although the Delta variant was much more infectious, its mortality reduced. However, the impact of social distancing measures on COVID-19 cases and deaths was not constant but strengthened with increasing quantiles of the distribution of cases and deaths, suggesting that an early response from policy-makers was very important. Vaccination brought benefits for both cases and deaths, but a particularly beneficial effect can be seen on COVID-19 deaths. The vaccination benefits grew with the share of the vaccinated population. Distrust in public institutions proved to have a negative impact on both COVID-19 cases and deaths. The inclusion of a set of control variables (health, economic, social and demographic) revealed that country characteristics such as cardiovascular mortality, the share of male smokers, economic development, the proportion of the population living in extreme poverty, population density, the quality of education or the share of rural population were important determinants of COVID-19 spreads. The analysis of the linear and nonlinear effects of the stringency of measures on various categories of sales according to the digital cash collection system (eKasa) in Slovakia revealed that sales in essential sectors for consumers, such as retail and grocery stores, were relatively resistant to tightening measures, while sectors that are less essential for consumers were more sensitive to social distancing measures.

An identity-based dynamic group signature scheme for reputation evaluation systems

As many Internet service platforms have launched reputation evaluation systems for applications, some malicious merchants are trying to disrupt the market competition environment by harassing evaluators or hiring netizens to give many untrue praises. Protecting evaluators’ identity privacy and the evaluation system’s fairness and justice is essential. Group signatures allow group members to sign messages anonymously in the name of a group. The group manager can find the actual signer in case of a dispute. Group signatures are widely used in reputation evaluation systems, digital cash, etc. However, most existing solutions are expensive, difficult to meet complex application requirements, and need more privacy protection or regulatory compliance. This paper proposes an identity-based dynamic group signature scheme for reputation evaluation systems standardized in IEEE P1363. We prove our scheme is secure in the random oracle model. Moreover, we provide a theoretical analysis of our scheme and conduct experiments by using the Miracl library on the PC platform to verify the analysis result. The analysis demonstrates that the size of the group public key and signatures do not increase with the number of group members. Our solution is efficient in reputation evaluation systems.

Blockchain Technology For Circular Economy In Plastic Bank

With the use of blockchain technology, this research sought to understand the applications, benefits, and limitations faced by circular economy-based businesses. This research was conducted at the Plastic Bank Company, which used a digital conference room to allow interviews that could not be conducted in person, as well as the researcher's residence for online data gathering and document review. Five management members of the Plastic Bank Company comprise the sample population. The information used is first-hand information derived from interview findings. In order to acquire data, several methods including interviews, document analysis, and observation were applied and tested by Triangulation. The findings of this study revealed: 1) Companies with a circular economy may employ blockchain technology to change supply chain operations, tracking, and tracing. 2) Blockchain technology has benefits for businesses based on the circular economy, including easier distribution management, less duplicate papers, increased cost effectiveness, and the ability to turn plastic trash into digital cash. 3) The general public is still unaware of the use of blockchain technology for businesses that rely on the circular economy. Furthermore, the company's success is constrained on a small scale due to the absence of finance from affiliated parties. Therefore, in order to grow the use of technology on a big scale, this circular-based economy firm for plastic banks has to strengthen its performance and efforts.

THE FUTURE OF FINANCIAL INCLUSION THROUGH FINTECH: A CONCEPTUAL STUDY IN POST PANDEMIC INDIA

Accessing adequate financial services is considered one of the main difficulties facing communities during periods of uncertainty and crisis. Applying technological innovations in the finance industry, such as digital cash transfers or mobile banking, along with governmental support and regulatory frameworks have the potential to reach out to people currently lacking access to basic financial requirements. Financial Technology or FinTech plays a crucial role in uplifting the state of financial inclusion in India in more ways than one. The current study aims to provide a conceptual understanding on how FinTech helps accelerate financial inclusion in India’s post pandemic landscape and throws light upon certain key regulatory initiatives that enable smooth execution of this objective. The paper also presents a brief discussion on the way forward for improvement of Fintech landscape in India. The methodology followed is descriptive in nature, focused on providing a conceptual overview of the topic at hand. The bottom line of the study states that Fintech will help the economy get back to its feet after the harsh realities of the pandemic through improvement and transformation so that it has a positive impact on all users.

An Impact Evaluation of Digital Cash Transfer (DCT) Scheme on Income Poverty in Nigeria

An Impact Evaluation of Digital Cash Transfer (DCT) Scheme on Income Poverty in Nigeria

Uticaj digitalnog novca na monetarnu i fiskalnu politiku

Digital money era is in full swing. It has already changed the structure of the global monetary system. Like industrial revolutions of the past few centuries, the digital money revolution is based on: (i) new IT and accounting technology (crypto algorithms, distributed ledger technology, internet, and deep penetration of smart phones), and (ii) demand for greater financial inclusion, and for more efficient financial services. The advent of unregulated private mobile money with more than 4 billion users and trillions of dollars in financial transaction has awakened fears of monetary system instability and dwindling traction of the old monetary and fiscal policy. The response has been a relentless effort by more than 100 central banks around the world to develop a public digital currency. Retail CBDCs issued by central banks will be available to everybody to provide stability and liquidity to the financial system in times of need. There will be uncertainties and challenges regarding the conduct of monetary and fiscal policy. Many expected improvements will come with inevitable tradeoffs in the speed and effectiveness of monetary policy transmission, and in achieving greater fiscal transparency without violating individual rights and privacy. Serbia will benefit greatly from improved fiscal transparency and reduced shadow economy associated with digital money revolution. At the same time it will be vulnerable to currency substitution pressures from future digital Euro and reduced traction of monetary policy in the presence of multiple e-money flows. Timely legal preparations for bank-led mobile money and Central Bank digital cash, and applied research of complex future policy risks is strongly advised.

Brunton, Finn. 2019. Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency. Princeton University Press

AbstractThe book Digital Cash: The Unknown History of the Anarchists, Utopians, and Technologists Who Created Cryptocurrency is a very important piece of work in the field of digital currencies development. The author applies the media archaeology method of research and points out the most important ideas, projects, but as well barriers and beliefs that influenced the way of thinking about digital currencies and their development. This includes description of political agendas of different stakeholders, and furthermore processes of setting up a basis for robust and reliable currency, but independent of governmental forces (like Bitcoin). The book surprisingly offers several positions for the reader, in the introduction and conclusion of the book the form is rather popularly educational, sometimes reflective, the middle part is, on the contrary, a very dense academic body of work filled with theories and facts from actual research and the author's independent historical work.

Exploring Recent Trends in Blockchain Technology: A Systematic Literature Review

Blockchain technology is used to maintain the ever-growing list of data records. Blockchain can be an authentic ledger which includes applications such as fund transfers, settling trades voting, and several other useful components. However, there are still many underlying challenges associated with blockchain technology. Blockchain (database) is older but a new approach in information technology whose first implementation is Bitcoin (crypto currency). Bitcoin has also used Blockchain technology at its back end to keep a permanent record (chains of block) of all the data. Bitcoin is the primary appliance that formed decentralized surroundingsdesigned for Crypto money, wherever the participant is capable of acquiring and substituting production with Digital cash. Therefore, a confirmed contract could involve crypto cash, contracts, report, or other information. The current study aims to describe a comprehensive synopsis of the blockchain concept which could also be used in many other applications. The most essential material goods of blockchain are made with the aimthat there is no essential overseer or any centralized information storage space routine. Hence, Blockchain transactions occur only in peer to peer network which is distributed among several nodes. Therefore, Blockchain expertise could be an innovative implementation of possible applications, in favor of an organization that enables a safe and sound connection exclusive of the necessitated essential power. The current study proposed and analyzed the possible function of blockchains within a structure throughout a case examination. In addition to do a systematic literature analysis Blockchain technology is expected to bring developments in diverse fields, such as politics, economy, culture, industry, and business models. Therefore, the scholarly research discovered the variety of drivers designed for blockchain accomplishment while highlighting the barriers and risk inborn within the chunk string (Blockchain).

Family financial planning for disaster preparedness: A case study of North Semarang, Indonesia

This paper examines two important themes, namely ‘family financial literacy and planning' and the ‘utilization of digital cash' in disaster preparedness. It aims to identify the community's preparedness from a family financial planning point of view. It also looks at how digital cash plays its role in the community and explores the extent of its connection to preparedness activities at family level. This study focuses on evidence gained from a case study in the North Semarang District, Indonesia, which has experienced flooding for decades. We distributed a questionnaire to 100 households, held four focus groups, and conducted in-depth interviews of 25 key persons. The study shows that family literacy on financial planning for disaster preparedness is relatively significant, though only a few of the families implemented financial planning and specifically considered it for (tidal) flood preparedness. Additionally, digital cash can be used as an individual solution to disaster preparedness at the family level, and as a collective solution to financial disaster preparedness at the community level. Yet, its utilization remains low and it is relatively concentrated to young adult families. Digital cash is a promising disaster preparedness resource for the next generation.

Central Bank Digital Currency: Scenarios of Implementation and Potential Consequences for Monetary System

Abstract Computerization of social life enabled market participants to search for new forms of electronic payments. The share of cash in total payments is systematically decreasing, which poses the risk of being supplanted by other instruments, including cryptocurrencies. Central banks, therefore, faced the challenge of adjusting their issuing activities to the current social and market conditions, which resulted in the emergence of the concept and discussion of the introduction of digital cash. The purpose of this paper is to examine the abovementioned issues and indication of potential scenarios for the introduction of central bank digital currency with an indication of potential consequences for the banking sector. The thesis of this paper is the following statement: The emergence of digital money of the central bank may significantly change the nature of commercial banks’ activities - including potentially eliminating their role in issuing cashless money.