Towards an ethical online Payment system

Towards an Ethical Online Payment System

Marwa Yousif

Abdi O. Shuriye

OUTLINES

• The Economy of Deception

• The Story Behind Central Banks

• The Global Financial Crisis: What Has Happened?

• Alternative? the Bitcoin System

The Economy of Deception Friedman and the Monetarism Theory

MV= PY M: Money Supply, V: Velocity ( a measure of how fast people spend their money) P: Price levels Y: an indication of the real GDP, a measure for economic growth

Nobel Price Winner 1976

The Economy of Deception Friedman and the Monetarism Theory Cont.

MV= PY

According to Friedman: People should spend their money Governments should print money Banks should lend it

Behavioral

The Economy of Deception

To Market the Culture of Spending

OUTLINES

• The Economy of Deception

• The Story Behind Central Banks

• The Global Financial Crisis: What Has Happened?

• Alternative?, the Bitcoin System

Central Banks

The Story Behind Central Banks

Private Banks of New York reeling from the 1907 financial crisis, decided that they needed a governmental established entity to lend them unlimited amount of money next time a panic arose.

The Story Behind Central Banks

Mission Accomplished!

In 1914, they have achieved that when the Federal Reserve of America established using their political influence and the Weapons of Mass Deception (Media). Central banking system was established to serve the best interest of private banking

OUTLINES

• The Economy of Deception

• The Story Behind Central Banks

• The Global Financial Crisis: What Has Happened?

• Alternative?, the Bitcoin System

The Global Financial Crisis What Happened??

The Monetarism Theory, and the Federal Reserve Roles

The Global Financial Crisis

The American Dream and the Housing Boom

Fancy, Luxurious Houses

A Dream?

Cheap Money

Low Interest Rates Fancy Houses

Luxury

Or a Nightmare??

Subprime Debts

Foreclosures

Interest Rates Rise

Defaults

The Global Financial Crisis

The American Dream and The Housing Boom

It Was a Nightmare, and Still Is!

Inflating the Subprime Bubble

Selling Loans: Mortgage- Backed Securities MBSs

The Fall

The Fall Cont.

They have triggered a subprime tsunami that has nearly drown the World Economy

The Fall cont.

And More

Credit Cards

Credit cards- Backed Securities is a $365 billion market (2008)

21st Century Slavery

OUTLINES

• The Economy of Deception

• The Story Behind Central Banks

• The Global Financial Crisis: What Has Happened?

• Alternative? the Bitcoin System

Bitcoin

designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities

Bitcoins Defined

Bitcoin is a virtual currency scheme based on a peer-to-peer network. It does not require a central authority in charge of money supply, financial institutions are not involved in the transactions. All these tasks are performed by the users themselves.

Bitcoins Defined cont.

Bitcoins can be spent on both virtual and real goods and services. Its exchange rate with respect to other currencies is determined by supply and demand and several exchange platforms exist.

Securing the Bitcoin System

By implementing Public- Key Cryptography, and Proof- of- Work Concepts

Conclusion

Riba Verses, Albaqara