Chapter 40. How to circulate digital cash
How to Circulate ‘Digital Cash’
(1) National Bank acquires reserves in various forms such as gold and currency.
(2) National Bank contacts the World Bank for reserve-endorsement.
(3) The World Bank approves National Bank to create an amount of digital cash.
(4) National Bank establishes an on-line platform with big-data management where each unit of ‘digital cash’ is given an authentication code.
(5) National Bank keys-in cash amount and transfers the digits to local commercial banks while ‘the on-line path’ of each unit of cash is created to record monetary activities.
(6) Local commercial banks transfer the digits into bank accounts of juristic persons and individuals whereas juristic persons’ registration numbers and individuals’ national identification numbers are recorded along ‘the path’ of receiving and paying of each unit of digital cash.
(7) Juristic persons and individuals spend digital cash circulated in an economy while their cash can be deposited into bank account, identification card, financial application, debit card, on-line application and more.
(8) National Bank can track and trace each unit of digital which circulates in the economy via ‘on-line path’ which can identify the juristic persons and individuals who own and spend each unit of digital cash based on authentication code, juristic person registration number and national identification number as well as passport number (in case of foreigners).
(9) Once a unit of digital cash is returned or deposited back to the National Bank or any local commercial banks in banking transactions, along circulation, local commercial banks record and verify the paths of digital cash and report back to the big-data system of National Bank. Then, local commercial banks can clear the cache of digital cash’s path.
(10) Units of digital cash are kept at local commercial banks in numeration for further circulation in the economy.
By Pirajak Tisuthiwongse (Pittaya Wong)
5 March 2022