Biom: A Biometric Currency a New Approach to Banking

11 Pages Posted: 4 Dec 2020

See all articles by Charaf Ech-Chatbi

Charaf Ech-Chatbi

CALYON; Maybank; Ecole Polytechnique, Palaiseau - CMAP CNRS-UMR 7641 and Ecole Polytechnique

Date Written: September 9, 2020

Abstract

Our modern financial system traces its origin to the ancient Babylonian banking system. The same fractional lending idea that is used today was used by merchants in the regions of ancient Babylonia, Assyria and Sumeria around 2000 BC. Later, the idea found its way to ancient Greece, the Roman Empire, China, India and then to us. The fractional lending concept was not the fruit of scientific research like what is done in other scientific endeavors where most of the best ideas are the result of a long process of trial and error. Is it not time to rethink the way we do banking in this digital age and try other ideas?

The last 40 years of cryptographic research culminated with the creation of Bitcoin currency system in 2009. We would like to expand on this and introduce three ideas to help rethink the banking system of the 21st century: 1) the concept of a biometric currency, 2) the concept of being your own bank and issue your own loans with zero-interest rate 3) and redefining the fractional reserve lending.

We propose a biometric currency concept that will enable people to self finance and to safely store their money in their hands. Contrary to cryptocurrencies that are issued by blockchain miners and Fiat currencies that are issued by bankers, Biom will be issued by everyone. The goal is to create from human life a precious asset like Gold that will benefit all.

Keywords: Biometric Currency, Fractional Reserve Banking, Bitcoin, Cryptocurrency, Digital Currency, Banking System, Fractional Lending, Quantitative Easing.

JEL Classification: A10, A11, G, G1, G01

Suggested Citation

Ech-Chatbi, Charaf, Biom: A Biometric Currency a New Approach to Banking (September 9, 2020). Available at SSRN: https://ssrn.com/abstract=3708040 or http://dx.doi.org/10.2139/ssrn.3708040

Charaf Ech-Chatbi (Contact Author)

CALYON ( email )

92920 Paris La Défense Cedex
France
00442072147142 (Phone)

Maybank ( email )

Singapore

Ecole Polytechnique, Palaiseau - CMAP CNRS-UMR 7641 and Ecole Polytechnique ( email )

Route de Saclay
Palaiseau, 91128
France

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