Electronic Currency - Science topic

The Covid-19 pandemic has resulted in the acceleration of the digitization and Internetization of various aspects of the business activities of companies and enterprises, Internet-implemented processes for the sale of products and services, Internet-implemented payments and settlements, Internet-implemented marketing communications with customers, and so on. Much earlier, in the 1990s, in some countries, the first companies began to develop their business activities, including the sale of certain products and/or services via the Internet, the first Internet businesses began to operate, Internet startups, dotcoms growing rapidly, portals offering Internet information services, earning money from the sale of Internet advertising, and so on. At that time, electronic banking was already developing rapidly, offering its banking services remotely, first to institutional clients, and then to individual clients, to citizens. Electronic banking initially providing remote banking services in the form of so-called home banking, and then at the turn of the century transformed into online banking and then into mobile banking. Successively, therefore, the electronification, digitization and Internetization of banking is progressing year by year. In some countries, as early as the late 1990s, there were already considerations about the future of Internet banking development. The possibility of a full transition of banking to online banking was considered, as well as the full replacement of money existing in traditional form, i.e. in the form of banknotes and coins, to the form of electronic money. Already at that time there were theories suggesting that soon, in a few years, all banking will become Internet banking, that physically existing bank branches will disappear completely, physically existing money will disappear from citizens' wallets and will be completely replaced by its electronic counterpart. A continuation of this kind of considerations is the transition of central banks to a kind of form of electronic central banking and the replacement of traditional money with digital currency generated and introduced into the economy by central banks within the framework of shaped monetary policy. In a situation where the progressive processes of digitization and internetization would also apply to central banking then monetary policy could also be subject to these processes. Well, during the Covid-19 pandemic, there was also an increased interest in the development of central bank digital currencies (CBDCs) in some countries. Some countries have attempted to introduce digital currencies of central banks. An interesting issue is the possibility of involving Blockchain technology in the development of systems based on central banks' digital currencies, which could ensure a high level of security for these digital currencies. However, both the positive aspects of the introduction of central banks' digital currencies for the formation of monetary policy, which would also be implemented more digitally, are still not fully recognized. The negative aspects of the introduction of financial systems and their development based on central banks' digital currencies are also not diagnosed. It is not fully explored what new risks in financial markets can be generated by the introduction of central banks' digital currencies. It is not known how the introduction of digital currencies of central banks could affect the stability of financial systems, the situation in financial markets and the macroeconomic stability of the economy as a whole.

I have described the key issues of the central banking problem in my articles below:

Synergy of post-2008 Anti-Crisis Policy of the Mild Monetary Policy of the Federal Reserve Bank and the European Central Bank

Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank

A safe monetary central banking policy as a significant instrument for liquidity maintenance in the financial system

ACTIVATING INTERVENTIONIST MONETARY POLICY OF THE EUROPEAN CENTRAL BANK IN THE CONTEXT OF THE SECURITY OF THE EUROPEAN FINANCIAL SYSTEM

Anti-crisis state intervention and created in media images of global financial crisis

I invite you to get acquainted with the issues described in the above-mentioned publications and to scientific cooperation in these issues.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best wishes,

Dariusz Prokopowicz

For years, the media have been conducting sterile discussions based on the low level of economic knowledge of citizens. Discussions in the media by economic commentators tend to lack objectivity, as they are determined by subjective reference to studies conducted by certain institutions, including the NBP, which were also not conducted and commented on under conditions of full political impartiality. The government, without the influence of various pressure groups, prefers the stasus quo to which it is accustomed, to which it is condemned for the next 4 years after winning the elections, and maximizes the pros against the cons of a given state of affairs, that is, the situation of Poland having a national currency. In Poland, the main social group that would definitely benefit from the introduction of the euro in Poland are entrepreneurs, mainly importers and exporters who settle their business activities in euros and therefore bear the costs of hedging against currency risks. However, even this social group is apparently too weak to unite in organizations supporting the plan to introduce the euro. Regarding the issue of the plan to introduce the euro in Poland, there is no such plan in principle. There were first attempts to develop this plan as early as the late 1990s, but as it turned out, the issue of the dominant narrative in the media was politically determined in particular years, or rather, during the periods of the various ruling political parties. The political narrative of the PIS party is related to the policy of printing national currency, the printing of so-called anti-crisis additional domestic money. The second PIS argument for not introducing the euro in Poland is the loss of national monetary policy by the NBP, i.e. the central bank, which theoretically and according to current legal norms (the Polish Constitution and the NBP Act) is an independent bank from the government's fiscal policy, which is not in line with the facts given the political ties of NBP President Prof. Glapinski with the PIS party, which ruled for 8 years from 2016 to 2023. Another third key argument, partly objective and economic, suggests that Poland could adopt the euro in the distant future, when the economic potential of the Polish economy, the production capacity of industrial sectors, labor productivity determined, among other things, by the equipment of manufacturing processes with new technologies and innovations, the balance sheet totals of banks' financial capital, the level of real income of citizens, etc., will almost equal the analogous levels in the largest economy in Europe and at the same time the main trading partner with respect to Poland, i.e. the German economy. In addition to this, the arguments used to question the legitimacy of the introduction of the euro in Poland in recent years often include concerns about the increase in prices of many products and services, which would occur in the first years after Poland's entry into the eurozone. The basis for this argument is to point to such a phenomenon, which has occurred on a certain scale in countries where the euro currency was recently introduced. In a situation where such a phenomenon also occurred in Poland, the most affected would be citizens with the lowest and lower levels of income, citizens who spend a significant part of their income on the purchase of basic products, including food products. From the arguments presented, further arguments follow. Well, if in the situation of a much less developed Polish economy in relation to the largest economy in Europe, which is the German economy, the plan to introduce the euro currency in Poland would be implemented, the less developed Polish economy could continue to develop less well and would not necessarily catch up quickly with the economic development of Germany. On the other hand, there are supporters of the completely opposite theory claiming that if Poland adopted the euro now it would develop faster and thus catch up with Germany's economic development faster. But there are also supporters of the theory that these issues are not necessarily correlated, because it is usually the case that less developed countries, when they develop and are developing, growing countries then the magnitude of the rate of economic growth in such smaller and less developed economies is greater in comparison with the corresponding figures denoting the rate of economic growth expressed in percent, expressed in the indicator macroeconomic determinant Gross Domestic Product. So this issue is almost entirely "malleable," subject to politicized, subjective evaluation. However, if the policy had changed on this issue, a plan for the introduction of the euro had been developed, all the formal requirements of the European Union had been met in terms of the monetary policy and fiscal policy applied in the country and their effects in the form of similar to EU standards issues of the development of the exchange rate of the PKN against the euro and in terms of the level of debt of the system of public finances of the state, and after a few or more years in Poland the euro currency would have been introduced, then in many media commentaries consideration of the pluses of the situation would have begun to prevail instead of consideration of the minuses as before. Then it could turn out that loans would be cheaper, because ECB interest rates are lower than NBP interest rates. However, the fact that the ECB's interest rates are lower than those of the NBP is related to the issue of offering Treasury bonds to foreign investors, who need to be offered a correspondingly higher yield to cover the higher level of risks associated with the peculiarities of the Polish economy. In addition, the issue of higher interest rates of the NBP vis-à-vis the CBs is also related to the transactions carried out by the NBP on international financial markets, as well as the exchange rate of the national currency PLN against other currencies. On the other hand, changes in the exchange rate of the PLN against other currencies also matter to foreign investors conducting speculative investment activities in Poland using securities listed on the Stock Exchange, i.e. primarily investment banks and investment funds operating transnationally. On the other hand, when we ask whether there is any type of entity that cares about the continued existence of the domestic PLN currency in Poland, it is primarily domestic commercial banks generating much higher profits from the situation as it is now, and also the already mentioned foreign banks and investment funds. Well, it has happened more than once that in periods of internationally or globally developing financial and economic crises, a decline in the level of economic stability, an increase in various categories of financial and other risks foreign financial institutions, such as. Foreign financial institutions, such as banks and investment funds based in the City of London, taking advantage of the situation of increased sensitivity of the PLN currency to various crisis factors, the situation of increased amplitude of fluctuations of the PLN exchange rate against other currencies determined by the increase in uncertainty and risks developing in the scope of economic activities carried out by thousands of entities, carried out speculative transactions with the involvement of large financial resources in the foreign exchange markets increasing the scale of destabilization in the issue of the formation of the PLN exchange rate against the euro and other currencies. So, when you do not know what the issue is about it is about money, or when you seem to know what the issue is about you choose many different arguments for the situation, but unfortunately a situation determined mainly by politics and not economics.

Specific economic and financial aspects relating to the issue of the possible adoption of the euro currency in Poland in the precisely unspecified future I described in the following article:

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What do you think about this topic?

What is your opinion on this issue?

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Best regards,

Dariusz Prokopowicz

In recent years, many technology startups have based their growth and competitive advantage on business, technological, product, service, marketing or other innovations. Banks are reluctant to provide investment loans to emerging startups basing their growth on innovative technologies. In such a situation, innovative startups emerge and are financed through such external sources of funding as investment funds, business angels, securities issuance, crowdfunding and others. Crowdfunding will develop intensively in the future as an alternative to classic forms of external financing for business ventures. It is an alternative to the financial service offerings of financial sector institutions, particularly in the segment of financing innovative start-ups. Commercial banks operating within the framework of classic deposit and credit banking often avoid lending to innovative start-ups due to difficulties in assessing credit risk. In such a situation, crowdfunding can be a good solution to the problems of finding external funding. On the other hand, cryptocurrencies, which operate outside institutionalised and centralised financial systems, are growing in importance. Perhaps in the future, cryptocurrencies will displace traditional currency from online financial transactions between fintechs, financial institutions, innovative start-ups, online technology companies running social media portals and their customers, and between users of these online portals. In addition to this, it is becoming essential to improve the security of online financial transactions and settlements carried out through online mobile banking. In this connection, blockchain technology is developing as an application for securing online transactions and data transfer. An increasing number of large companies are announcing the creation of their own cryptocurrency. Some investment banks such as JP Morgan have announced the creation of their own cryptocurrency for settlements with key counterparties. The development and implementation of ICT information technologies, advanced data processing technologies Industry 4.0 and Internet technologies into the business activities of companies and enterprises facilitates the execution of financial operations on the Internet and ensures a high level of security of Internet data transfer. The development of technological innovations, ICT information technologies, advanced information processing technologies co-creating the current technological revolution Industry 4.0, financing through crowdfunding, securing online transactions with blockchain technology, the increase in the use of cryptocurrencies in these settlements, etc. are likely to be important determinants of the development of innovative, technological start-ups operating on the Internet and factors in the development of the knowledge economy in the years to come. Consequently, the development of open innovation is correlated with the issue of innovation and entrepreneurship development in the economy. A significant proportion of innovative startups develop their business model based on open innovation. On the other hand, in macroeconomic terms, the development of open innovation can be an important determinant of economic development in developing countries and in developed knowledge-based economies. In view of the above, research shows that the spread of open innovation and open knowledge bases is an important issue for building a sustainable economy in a technologically developed and developing country. A number of predictive studies show that cryptocurrencies will grow in importance in the future in financing various transactions and settlements carried out electronically, through the Internet, on social media, in investment banking, etc. Currently, many technology startups base their growth and competitive advantage on technological, product, service, marketing or other innovations. However, in order for the financing of new business ventures, innovative startups to develop using cryptocurrencies it is necessary to increase the scale of systemic formalisation and institutionalisation of transactions carried out using cryptocurrencies, to build formalised cryptocurrency markets and to increase the security of transactions carried out using cryptocurrencies in the future.

In view of the above, I address the following question to the esteemed community of scientists and researchers:

What is your opinion on this topic?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Warm regards,

Dariusz Prokopowicz

Will the currently developing crises lead to a major collapse in the development of cryptocurrencies or will cryptocurrencies return to dynamic growth in the future?

Will the currently developing crises (rising inflation, energy crisis, stock market slump, food crisis, possibly also stagflation in 2023) lead to a serious collapse in the development of cryptocurrencies or will cryptocurrencies return to dynamic development in the future?

What do you think?

What is your opinion on the subject?

Please reply,

I invite you all to discuss,

Thank you very much,

Best regards,

Dariusz Prokopowicz

Online and mobile banking has been growing rapidly in recent years. In addition, due to the increase in digitization and Internetization of economic processes, selling products and services over the Internet, making payments and settlements online, etc., noted during the SARS-CoV-2 (Covid-19) pandemic, the scale of development of Internet and mobile banking has also increased. Commercial banks developing remote banking conducted via the Internet are rapidly implementing new ICT information technologies and Industry 4.0 to create facilities for accessing banking performed remotely recently mainly using mobile devices, including smartphones. A smartphone can be used to complete banking services, payments, transfers. A smartphone can be used to make contactless payments by uploading a bank card to a smartphone. Within the framework of online banking, a bank customer can also carry out many other services available on the online banking platform and offered by various public institutions of the state. From the level of the online banking profile operated on a laptop or smartphone, the bank's customer can set up a business, receive advisory assistance on tax issues, the selection of financial instruments for external business financing and for the placement of financial surpluses, the investment of funds in investment banking products and others for which the commercial bank is an intermediary institution. This kind of offer available from the level of online banking profile operated on a laptop or smartphone is already becoming a standard of commercial banking. In my country, commercial banks are trying to attract new customers primarily interested in opening a bank account and operating it remotely through online and mobile banking. Since the level of the public's ubanking is high at more than 90 percent, so new customers are being acquired by commercial banks through new incentives to convince new customers to switch from one bank to another. New forms of incentives that have been in use for several years now include. financial consulting, tax consulting, assistance with accounting, financial reporting, the possibility of creating a website for the company, including an online store platform, access to remote services for businesses and companies, the possibility of dealing with official matters at public institutions, including the tax office, the institution of the social security system, the institution of business records, the institution that keeps national statistics, the institution of the health system, the insurance company, the investment fund, the brokerage office that mediates in securities, the banking exchange, etc. These services are offered as additional and free of charge or charged at a low fee as incentives for new customers, mainly SME businesses, who open a business account through online banking and take advantage of a certain package of banking services and products.

In view of the above, I address the following research question to the esteemed community of researchers and scientists:

Please answer,

I invite everyone to join the discussion,

Thank you very much,

Regards,

Dariusz Prokopowicz

Green cryptocurrencies should be developed according to new eco-innovative technologies, so that their creation, digging will use much less electricity than today. Currently, digging cryptocurrencies still uses as much energy as a medium-sized country on a global scale. The issue of saving electricity consumption is particularly relevant in the context of the current energy crisis and, in the future, also in the context of a multi-year developing climate crisis. Therefore, green cryptocurrencies, which will be used to finance new pro-environmental and pro-climate green business ventures, should also be created using many times less electricity than at present in order to be green in themselves.

Or perhaps both? This would be best for the environment, the climate and the planet's biosphere.

In view of the above, I address the following questions to the esteemed community of researchers and scientists:

What do you think about this topic?

What is your opinion on this subject?

Please respond,

I invite you all to discuss,

Thank you very much,

Best regards,

Dariusz Prokopowicz

Could the larger-scale use of Central Bank Digital Currency by central banks have an impact on their monetary policies?

With central banks using Central Bank Digital Currency, will the question of the independence of these banks vis-à-vis the fiscal policies of governments increase in importance?

And what is your opinion on the subject?

What do you think?

Please reply,

I invite you all to discuss,

Thank you very much,

Warm regards,

Dariusz Prokopowicz

Is there anyone specialized in this field? I'd like to read something more about the relation between electronic money and economic growth.

All the contributions are welcome.

At the end of the twentieth century, publications appeared that confirmed this type of thesis and suggested that the development of banking is heading in this direction, ie towards full automation and electronization, remote service through the Internet of clients of financial institutions. However, at the beginning of the 21st century, the situation is changing.

Despite the development of artificial intelligence, intenet of things etc. and the use of new information technologies, eg for the creation of automated electronic advisers, electronic avatars simulating a bank employee or other financial institution providing advice to a client served via a website, some of the bank clients do not want to part with a counselor in the person of a man, not a machine.

In connection with the above, will the social and psychological aspects of interpersonal contacts and customer needs in this matter be a barrier to the creation of fully automated electronic banks without staff?

Do you agree with me on the above matter?

In the context of the above issues, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Already at least several commercial banks have created their own cryptocurrencies. Some investment funds invest part of their assets in selected cryptocurrencies. Recently, the investment bank JP Morgan has created its own cryptocurrency JPM Coin. Cryptocurrency JPM Coin will be used to settle initially a small part of the transaction, which JP Morgan performs on a daily basis for a total of about USD 6 billion.

Thanks to JPM Coin, settlements between business partners should take place immediately, ie much faster than the current standards of transfers. However, apart from accelerating the time of the transaction, what are the other goals for banks to introduce their own cryptocurrencies?

Could investment banks create a new type of collateral for transactions in the event of a possible strong loss of the USD dollar in the event of another global financial crisis connected with the currency crisis? Such a risk exists if the problem of growing public debt in the US is not resolved and banks in China cease to buy US Treasury bonds.

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Perhaps in the future the development of electronic, online banks and technology companies developing financial services as fintechs will be implemented in parallel and will lead in many respects to a synthetic model of combining different business concepts of banks and fintechs. In such a situation, it will not be possible to clearly determine who has taken over and dominated the first, or electronic banks or fintechs.

Do you agree with me on the above matter?

In the context of the above issues, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

The recent Sveriges Riksbank Prize in Economic Sciences or Nobel prize (as commonly known) was actually awarded to an economist (Fama) who claimed that markets are efficient and any prediction of it's movement is fruitless. Isn't the Bitcoin price random too?

Furthermore, we can even fit Robert Schiller's theory into it. There is clearly a long-term trend and crazy volatility. Also, Bitcoin tries modelling the ideal world scenario of no transaction fee as used when designing theory like CAPM.

With such similarities, why isn't research being done in the Bitcoins? There's so little to read. We pretty much end up with Satoshi's paper which is more cryptography and less economics.

In some countries, the costs of banking services are significant for citizens and reach 0.2-0.3 percent average level of remuneration. For several years, financial services have been developed also by fintechy as support for electronically settled accounts and payments made to customers paying for delivered products and non-financial services. The increased competition of banks with fintechs in the field of online payments and settlements may become an important factor in the reduction of fees for services in the context of electronic online banking?

Do you agree with my opinion on this matter?

In view of the above, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Online mobile banking is dynamically developing because pro-development factors continue to outweigh the factors limiting this development.

The main development factors are the reduction of operating costs for banks and facilitating remote access to banking services, including mobile payments to clients.

Currently, the only barrier to development can be increased activity of cybercriminals stealing data from online banking clients, hacking into online bank accounts of customers and robbing clients of financial means. However, banks have so far quickly identified this type of cybercrime incidents and have been gradually improving their mobile banking security systems.

Another factor limiting the development of online mobile banking may be the number of bank customers interested in this type of banking.

What are the other key determinants of the development of mobile banking?

Please answer

Thank you very much

Dear Friends and Colleagues of RG

I described the problem of cybercrime in publications:

I invite you to discussion and cooperation.

Thank you very much

Best wishes

More and more large companies are announcing the creation of their own cryptocurrency. Some investment banks, such as JP Morgan, have announced the creation of their own cryptocurrency for settlements with key contractors. Some technology companies operating in the field of ICT and new online media also plan to develop blockchain technology in cryptocurrency applications. For example, the social media portal Facebook also announced the creation of its own criticism called Libra, which the users of the portal will be able to pay for various services available through Facebook. Some investment funds invest their financial capital in some cryptocurrencies.

Whether in the context of the development of cryptocurrencies, the share of transactions made with traditional money issued by central banks will gradually decrease. Will the development of cryptocurrencies and their rapid dissemination not jeopardize the stability of the monetary systems of some countries? If the share of traditional money in total transactions made by citizens will decrease, will the significance of the financial system, including the banking system, also decrease? If there is a large unpaid public debt in a given country and a decrease in the use of traditional money in transactions between entities, can it lead to a serious financial and / or currency crisis? Many countries finance their public finance debt by issuing Treasury bonds in which foreign financial institutions also invest. So, can future cryptocurrencies be used for international settlements in the future? Can the decrease of confidence in the national currency of a heavily indebted country lead to an increase in international settlements using cryptocurrencies?

Do you agree with me on the above matter?

In the context of the above issues, I am asking you the following question:

Please reply

I invite you to the discussion

Thank you very much

Best wishes

The World Food Programme of the United Nations effectively deployed humanitarian aid to 10,000 Syrian refugees using Ethereum, a blockchain-based crypto currency.

In this massive deployment, unlike earlier mobile money solutions built around smartphones, the personal biometrics (eye scan, fingerprints) were used to verify the beneficiary.

The question then becomes; Will an electronic payment system (global or local) built on Distributed Ledger Technology (DLT), ie the Blockchain, necessarily require smartphones in order to be efficient and effective in its diffusion and adoption by end-users, especially those in the low-wage earning demographic ?  What is the best role for the smartphone is this ecosystem ?

The use of blockchain approaches is more and more discussed, however, often from a technology point of view. What is the business impact? How it it used in practice - besides the bitcoin application?

Is there any bonds were purchased under Outright Monetary Transactions (OMT) program?

If yes, which is the best direction to start a research on it's economic effects?

This is a system of money transfer from one account to another within same bank or different banks using electronic mode of transfer without manual interference

Central banking has served global finance well for several centuries with the Song and the Yuan Dynasties being credited with the development of fiat currencies.  Central Banks have as their primary mandate the maintenance of price stability in an economy.  This they achieve by managing the money supply in an economy; so as to manage inflation;  by regulating the value of the national currency exchange rate vis a vis trading partners;  by finance government operations;  by being the sole authorized distributor of banknotes, and by being the 'lender of last resort' to commercial banks. 

International trade is directly impacted by the efficiencies of national central banks; their rules, relationships, settlement protocols, etc etc.  A widespread use of a blockchain digital network, promises that the settlement cycle would be significantly reduced.

Recent views however is that the role of CB's  in speeding global trade maybe hitting a limiting barrier (administrative & technological) and there are fears that the present infrastructure may be acting as a retardant to trade.

Hence the serious examinations now taking place with digital currencies, particularly, the leveraging of the features of blockchain technologies. 

Recent initiatives of the White House and the Chamber of Digital Commerce has been looking at ways to exploit / leverage blockchain digital distributed ledger technology for the Federal Government.  The pace has been intensifying and broadening.

The Bank of Canada is already developing a blockchain-based CADcoin alternative digital currency, backed by real fiat currency reserves.

The Bank of England Governor Mark Carney is cited as indicating that a "central bank digital currency" is a development that could result from its ongoing distributed ledger (blockchain) proof-of-concept process.

Whither national central banking in the new dispensation ?  Is a paradigm shift about to occur ?   Is national state jurisdictional issues about to be supplanted by global financial efficiency considerations, particularly related to international trade ?

I think the research conducted by Markus Oermann and Nils Tollner did a very good beginning. However, it seems that there are more things needed to be done.

Reference:

Gasser, Urs, Ryan Budish, and Sarah Myers West. "Multistakeholder as Governance Groups: Observations from Case Studies." Berkman Center Research Publication 2015-1 (2015).

I have connected a current source with 1A across an inductor and then I have observed AC response. It is oscillating at some frequency, but the thing is quality factor is not matching in the following methods.

(i)   Q=f0/BW

(ii)  Q=WL/R

here I have considered model as parallel combination of capacitor with series combination of an inductor and a resistor....

Thanks in advance....

Everyone seems to quote 'market cap' (price*total volume) but this seems to be of pretty limited value, particularly if you want to have a measure of the relative utility or use of a cryptocurrency. Can anyone suggest some alternative metrics? It seems that there's an entire field here yet to be developed.