The future of cash and alternatives: cryptocurrencies, blockchain solutions, digital coins, central banks and more

1. Copyright by Initech 2017,
www.initech.co.il
Connecting the dots between finance and technology
Cashless Economy

2. Copyright by Initech 2017,
www.initech.co.il
• Ishay Tentser, digital innovator and mentor
• CEO at Initech, an Israeli software development company with focus on
FinTech and Blockchain implementation
• We are involved in Israeli startup ecosystem through board membership,
mentoring and innovation visa program
• We specialize on AI, BigData and Blockchain technologies
• We have delivered 200+ unique solutions
About me

3. Copyright by Initech 2017,
www.initech.co.il
Why do we still use cash?
• Traditional
• Cheap (no transaction fees)
• Anonymous
• Buyer must have the full amount upfront
• Zero risk for seller (unless counterfeited banknotes)
• Ease of use / offline (no technology required to complete transaction)

4. Copyright by Initech 2017,
www.initech.co.il
Cash Alternatives
• Credit Cards
• Bank Cheques
• Mobile Payments
• Alternative values
Attribution to: Bank for International Settlements, Full article at: https://www.bis.org/publ/qtrpdf/r_qt1709f.htm

5. Copyright by Initech 2017,
www.initech.co.il
Credit cards
• Very popular and well established method
• Highly available infrastructure for sellers
• Universally supported by banks and credit companies
• Not suited for micropayments
• Enables instant credit (increases potential of sale for business)
• High fees
• Entry barrier: bank account / credit history

6. Copyright by Initech 2017,
www.initech.co.il
Mobile Payments
• Low fees / suitable for micropayments
• Ubiquitous infrastructure to issue and receive payments
• Promoted by tech giants (Apple Pay, Android Pay, Samsung Pay, WeChat, AliPay)
• High adoption in the Eastern Asia: due to government support
• Low adoption in the West: customers don’t see tech giants as finance providers
• Huge adoption in Africa (M-Pesa): due to a lack of other alternatives

7. Copyright by Initech 2017,
www.initech.co.il
Blockchain-based digital tokens (coins)
• Low to moderate transaction fees
• Bottleneck: blockchain transaction confirmation times
• Ubiquitous infrastructure to issue and receive payments
• Low adoption as a means of payment by general public:
• Valuation volatility
• Lack of legal / financial responsibility by issuers (implication of decentralization)
• Unclear taxation / regulation implications

8. Copyright by Initech 2017,
www.initech.co.il
Government-backed e-Coins initiatives
• Japan (j-coin) - digital currency
• Sweden (e-krona) - digital currency
• Russia (CryptoRuble) - probably digital currency
• China - probably digital currency
• Estonia (estcoin) - probably ICO, means of investment

9. Copyright by Initech 2017,
www.initech.co.il
Centralized vs Decentralized Ledger
Attribution to: Bank for International Settlements, Full article at: https://www.bis.org/publ/qtrpdf/r_qt1709f.htm

10. Copyright by Initech 2017,
www.initech.co.il
Approaches to e-Coin implementation
• Centralized - all balances are kept in a private database controlled by a single entity
(single point of failure, lack of transparency)
• Decentralized - balances are derived from the history of transactions which are
processed and recorded in decentralized manner according to predefined protocol,
that is strictly followed by all processors on the blockchain (high transparency, lack
of control)
• Hybrid - blockchain protocol is controlled by a single entity, that authorizes
additional entities to serve as blockchain processors to increase transaction
throughput / offer additional services

11. Copyright by Initech 2017,
www.initech.co.il
For future consideration
• New possibilities for auditing / tax collection for relevant authorities
• Coupling of physical and digital means of payment at points of sale
• Digital wallets to receive and send payments
• Digital signature as means of authentication and authorization
• Support of smart contracts (loans, investments, contracts fulfilment)

12. Copyright by Initech 2017,
www.initech.co.il
Thanks for listening!
More questions?
See you soon!
Ishay Tentser, IniTech CEO
drop me a line at: ishay@initech.co.il
follow my LinkedIn: http://www.linkedin.com/in/tentser
visit our site: https://www.initech.co.il/en/blockchain-and-crypto/