Abstract

http://ssrn.com/abstract=1687368
 


 



Smart Banknotes: A Proposal for Bank Notes that Bridge the Gap Between Physical and Electronic Money


Ignacio Mas


University of Oxford - Said Business School; Tufts University

July 4, 2010

The Futurist, Vol. 5, No. 1, January-February 2011

Abstract:     
Cash imposes large costs on society, yet it is hard to envision moving to an entirely cashless society. If we cannot get rid of cash, then we need to change it in a way that makes it less costly for all to handle. We consider the possibility of creating a new kind of banknote that can be activated or deactivated electronically by transferring value between a banknote and your bank account, right from your mobile handset. Cash could be transported cheaply in its deactivated form using normal retail distribution channels; stores could make their accumulated cash balances vanish at will by simply deactivating it; and bank customers would be able to convert their bank account into cash or vice versa anywhere, anytime. Mobile banking could flourish in developing countries without requiring the development of complex, costly cash agent networks. In this fashion, the mobile handset can truly integrate the capabilities of an internet banking terminal and an ATM.

Number of Pages in PDF File: 5

Keywords: electronic money, digital money, branchless banking, mobile banking


Open PDF in Browser Download This Paper

Date posted: October 5, 2010 ; Last revised: August 10, 2014

Suggested Citation

Mas, Ignacio, Smart Banknotes: A Proposal for Bank Notes that Bridge the Gap Between Physical and Electronic Money (July 4, 2010). The Futurist, Vol. 5, No. 1, January-February 2011. Available at SSRN: http://ssrn.com/abstract=1687368

Contact Information

Ignacio Mas (Contact Author)
University of Oxford - Said Business School ( email )
Park End Street
Oxford, OX1 1HP
Great Britain
Tufts University ( email )
Medford, MA 02155
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,814
Downloads: 317
Download Rank: 61,032

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.328 seconds