Teller Machines of the Digital Economy: Blockchain Interaction Units (BIU)

Abstract

The world is rapidly moving onto a cashless economy. But our present economic system is highly centralised. It has a high transaction cost and is vulnerable to single-point failures (like hacking of the centralised servers). Moreover, a centralised digital economic system cannot ensure mixed non-monetary activities as opposed to that possible on a blockchain (like selling of land or sharing or exchange of digital resources). As such, the future digital economy will fast shift to Blockchain platforms. To operate on a cashless digital economy, one needs to have personal electronic devices (like mobile phones, tablets etc). This paper envisages a method to make Blockchain accessible to all irrespective of whether they possess personal devices or not. Firstly, the concept of cryptocurrencies (also referred to as cryptocoins in this paper) is explained. Then the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs) is discussed. Later, I explain how a Blockchain Interaction Unit (BIU) will work. Then we discuss the several advantages of BIUs. Finally, the paper concludes as to how BIUs will impact the economy.

Keywords: blockchain, bitcoin, cryptocurrency, rsbc, nationcoins, K-Y Protocol

JEL Classification: E51, E52, G18, I31, I38, L24, O14, O33, Q55, R51