dated Oct 25 2015

Short link http://wp.me/p1ZsI2-M6                     abraham-paul-2


For over a decade now I had been propagating the idea of Universal Money Management using phones, in a paper I published in 2002, that nobody took it seriously then. wp.me/p1ZsI-4g

Now there are thousands of e-money business Companies using it world wide creating parallel economy of Virtual money that can be disruptive to Banking Industry as well as Governments economy unless it is well regulated. How Virtual money can be harnessed and used are explained in this presentation and the papers in it. Call it a simpler version of Crypto currency, BLOCKCHAIN or else. Concepts are important, nuts and bolts can be added by thousands out there.

Universal mTm- System intgrated with Exclusive mTm- Bank


Money cycle in mTm

Click on the caption below to view the presentation which is self explanatory. .>>>

Microsoft PowerPoint – VIRTUALBANKS(S) (1)

  1. The idea of Government using money as a Commodity.

Governments spend quite a lot of money for Printing Money,  its safe keep, distribution, replacements and accounting of it and for preventing Black money and Counterfeits.

State, Banks and People make use of it in Physical form and also in Virtual form of sorts.

Everyone  use it profitably and multiply it, drawing more into it.

In addition to creation of MONEY, all Governments created different forms of Taxation to earn revenue for themselves. Taxes of sorts in vogue put together, cause heavy burden on people to the extent that further taxation is strongly objected by all putting constraints on Government’s Revenue.

It is only right for Governments use Money as a commodity and levy some sort need based fee, call it service charge, maintenance charge or whatever, on its use.  The charge will be applicable only on the Payer (except in exceptional cases), the person or the organization or the system make payments, that is collected autonomously at the transaction stage. That way the burden is distributed to entire population evenly, more on the rich and less on the poor.

Money being dynamic and never remain static at one point, money goes on rolling continuously non-stop, making its revenue earning potential for the Government, larger and larger.

The revenue collected thus by Governments would be enormous and much more than what is being collected in various forms of taxes now and will suffice to cover entire Government expenditure comfortably and much more for development needs without burdening people with any form of taxation GST and else.

The damage on common people can be limited to affordable levels that will be eventually much lower than all existing taxes they pay now in various forms. The rate of charge shall be such that the revenue earned can meet Government expenses on all counts. The rates of transaction fee shall be variable and need based so that it can be altered according to need. For example in case of a national calamity the rate can be raised and collect required funds immediately for it and lower it back later.

The usage fee rate can be User based, area based, amount based etc. etc.  The amount collected shall be enough to share with States and other stakeholders in the chain like Payment Gateways (Payment banks) Telcos, etc.

Please see a simple presentation in the link below explaining the idea with no jargons,  leaving it to the experts to look into and think about further.

2. The challenges are making available fail proof systems, INTERNET  CLOUD and connectivity between Reserve Bank Server and Payment Gateways to ensure on-line authentication of every virtual money transaction. In order to manage this the redundant  Technology systems with exclusive  integrated bank, and Reserve Bank server shall reside in the exclusive CLOUD. Risk area is the non-availability or failure of connectivity while on the move and in POSs everywhere.

Moreover, it can be seen that to make these systems work,  the Payment gateways associated shall be mainly Technology systems, not Banks and shall therefore, function under the ambience of the Government for obvious reasons.

It means that like Creation and Management of Real Money; Reserve shall be the sole authority and Creator, Custodian, Operator, Controller/Regulator of Money in Virtual form also. 

3. The crux of the issue involved in Virtual money business is Money in Physical form reach and reside in Reserve bank and money in active virtual form originate and move and  reside as dynamic Wallet with its users and continuously moves and finally returns to Reserve bank to get converted into physical Money so that the quantum of physical money remains constant while Government can make enough money for its needs using money as a commodity both in its physical form as well as in Virtual form. It means the newly born payment banks have to think how they run their business.

4. Again, to prevent fast mushrooming private Virtual Money businesses disrupt legacy Banks and Banking Industry, the way out for the Government make the Banking Industry  itself convert and take over handling of Virtual money,  the way it is described herein.

5. Money going Virtual Universally can rein in extremism.

With the system in place with every Government Universally everywhere it is possible to monitor who uses the money for what purpose, to buy Bread or Bombs and Guns and control the money flow.

War is no solution. Wars kill innocents more and create more extremists. Controlling the money supply to such elements and groups is the only sure way to restrict extremism and extremist activities effectively.

6. Sizeable percentage of money transactions already happen in virtual space. By phasing out real money universally and monitoring and controlling money in its virtual form as suggested herein would help to  eliminate extremism of sorts exists across the world.   The idea is explained in detail in my blog “Power of Virtual Money, its problems and need of Regulation”  in the link http://wp.me/p1ZsI2-Ku

A short presentation can be seen by clicking on the caption below which is self explanatory.

Microsoft PowerPoint – VIRTUALBANKS(S) (1)

mTm with Integrated bank

Also please see a detailed write up and presentation I wrote many years back. “Exclusively banked Universal Money management systems and methods” http://wp.me/p1ZsI2-4g and ‘Power of Virtual Money, its perils, Solutions and urgent need of regulation.’ in the link  http://wp.me/p1ZsI2-Ku


By Abraham Paul. P. FIE. FIETE

Owner FCOMNET.   Ex. Vice President SPCNL SIEMENS ICN Germany / Director TRG, TS & SC SIEMENS RHQ UAE / G.M & Member TBG, BPL Mobile India / TES (I) DOT India.

papaul@hotmail.com  P +91 471 2446644  M +91 9446322644    Tweet @pa_paul



About Abraham Paul

Vision & Objective: Telecom has always been the passion of my life. After 60 years of outstanding career and many personal contributions to the industry, I still have same urge, and desire to give back to the industry, the abundant experience, knowledge and potential acquired, by providing consultancy service to forward looking enterprises and entrepreneurs in Legacy and New generation Telecom & IT in the areas of Business Management, Technology, Engineering and Services. Apolitical and religiously unbiased.
This entry was posted in Inclusive Growth, Cashless Society, Tax free regimes, Eradication of Corruption and Black Money, Contol on Terrorism - in one go., IT based services, Life science technologies, Social and Community affairs, Telecom Technology. Bookmark the permalink.

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