1. Electronic Currency System An introduction

2. Balance sheet Liabilities Capital=1000 Loan=0 Total=1000 Assets Projects= 0 E-Currency=1000 Total=1000 Balance sheet Liabilities Capital=1000 Assets E-Currency=1000 Balance =1000 Balance sheet Liabilities Capital=1000 Assets E-Currency=1000 Balance sheet Liabilities Capital=1000 Loan=0 Total=1000 Assets Projects= 0 E-Currency=1000 Total=1000 ECONOMY Balance sheet LIABILITIES CapitalRs. 4,000.00 Bank Deposits Rs.4,000.00 LoansRs. 0 TOTAL Rs.8,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 4,000.00 ProjectsRs 0Loans & AdvRs 0 TOTALRs. 8,000.00 Bank Balance sheet Liablilities Capital=0 Deposits C1=1000 C2=1000 G=1000 E=1000=4000 Total=4000 Assets Loans & adv=0 E-Currency=4000 Total=4000 C1 C2 G E Initial Money introduced Balance =1000 Balance =1000 Balance =1000 3. Balance sheet Liabilities Capital=500 Assets E-Currency=500 Balance=500 Balance sheet Liabilities Capital=1500 Assets E-Currency=1500 Balance=1500 C1 C2 Rs. 500.00 Since the money at any point of time is both with the bank & the citizens, therefore there can never be any liquidity crunchBalance sheet Liabilities Capital=1000 Loan=0 Total=1000 Assets Projects= 0 E-Currency=1000 Total=1000 Balance sheet Liabilities Capital=1000 Loan=0 Total=1000 Assets Projects= 0 E-Currency=1000 Total=1000 G E Balance =1000 Balance =1000 ECONOMY Balance sheet LIABILITIES CapitalRs. 4,000.00 Bank Deposits Rs.4,000.00 LoansRs. 0 TOTAL Rs.8,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 4,000.00 ProjectsRs 0Loans & AdvRs 0 TOTALRs. 8,000.00 Bank Balance sheet Liablilities Capital=0 Deposits C1=500 C2=1500 G=1000 E=1000=4000 Total=4000 Assets Loans & adv=0 E-Currency=4000 Total=4000 4. Loan Rs 2000. Debt-financing technique gets initiated here Balance sheet Liabilities Capital=500 Assets E-Currency=500 Balance=500 Balance sheet Liabilities Capital=1500 Assets E-Currency=1500 Balance=1500 C1 C2 Balance sheet Liabilities Capital=1000 Loan=0 Total=1000 Assets Projects= 0 E-Currency=1000 Total=1000 E Balance =1000 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects= 0 E-Currency=3000 Total=3000 G Balance =1000 Bank Balance sheet Liablilities Capital=0 Deposits C1=500 C2=1500 G=3000 E=1000=6000 Total=6000 Assets Loans & adv=2000 E-Currency=4000 Total=6000 ECONOMY Balance sheet LIABILITIES CapitalRs. 4,000.00 Bank Deposits Rs.6,000.00 LoansRs. 2,000.00 TOTAL Rs.12,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 6,000.00 ProjectsRs 0Loans & AdvRs 2000.00 TOTALRs. 12,000.00 5. Loan Rs 2000. Balance sheet Liabilities Capital=500 Assets E-Currency=500 Balance=500 Balance sheet Liabilities Capital=1500 Assets E-Currency=1500 Balance=1500 C1 C2 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects= 0 E-Currency=3000 Total=3000 E Balance =3000 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects= 0 E-Currency=3000 Total=3000 G Balance =3000 Bank Balance sheet Liablilities Capital=0 Deposits C1=500 C2=1500 G=3000 E=3000=8000 Total=8000 Assets Loans & adv=4000 E-Currency=4000 Total=8000 ECONOMY Balance sheet LIABILITIES CapitalRs. 4,000.00 Bank Deposits Rs.8,000.00 LoansRs. 4,000.00 TOTAL Rs.16,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 8,000.00 ProjectsRs 0Loans & AdvRs 4000.00 TOTALRs. 16,000.00 6. Rewards 2000.00 System created Money = (E-currency in hand with others) (Initialmoney introduced) = Rs 8000-4000 =Rs 4000.00 Real wealthbeing created here Thus the first income cycle is created Balance sheet Liabilities Capital=500 Assets E-Currency=500 Balance=500 Balance sheet Liabilities Capital=3500 Assets E-Currency=3500 Balance=3500 C1 C2 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects= 0 E-Currency=3000 Total=3000 E Balance =3000 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects=2000 E-Currency=1000 Total=3000 G Balance =1000 Bank Balance sheet Liablilities Capital=0 Deposits C1=500 C2=3500 G=1000 E=3000=8000 Total=8000 Assets Loans & adv=4000 E-Currency=4000 Total=8000 ECONOMY Balance sheet LIABILITIES CapitalRs. 6,000.00 Bank Deposits Rs.8,000.00 LoansRs. 4,000.00 TOTAL Rs.18,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 8,000.00 ProjectsRs 2000.00Loans & AdvRs 4000.00 TOTALRs. 18,000.00 7. Rewards Rs 2000.00 Balance sheet Liabilities Capital=2500 Assets E-Currency=2500 Balance=2500 Balance sheet Liabilities Capital=3500 Assets E-Currency=3500 Balance=3500 C1 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects=2000 E-Currency=1000 Total=3000 E Balance =1000 Balance sheet Liabilities Capital=1000 Loan=2000 Total=3000 Assets Projects=2000 E-Currency=1000 Total=3000 G Balance =1000 C2 Bank Balance sheet Liablilities Capital=0 Deposits C1=2500 C2=3500 G=1000 E=1000=8000 Total=8000 Assets Loans & adv=4000 E-Currency=4000 Total=8000 ECONOMY Balance sheet LIABILITIES CapitalRs. 8,000.00 Bank Deposits Rs.8,000.00 LoansRs. 4,000.00 TOTAL Rs.20,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 8,000.00 ProjectsRs 4000.00Loans & AdvRs 4000.00 TOTALRs. 20,000.00 (Money deposited with the bank) =1 (Money in circulation) Hence, the intrinsic value of money remains at par all the time. As a consequence, the question of Monetary Inflation does NOT arise at all. 8. Loan Rs 1500.00 Loan Rs 2500.00 System created Money = (E-currency in hand with others) (Initialmoney introduced) = Rs (12000-4000) =Rs 8000.00 Balance sheet Liabilities Capital=2500 Assets E-Currency=2500 Balance=2500 Balance sheet Liabilities Capital=3500 Assets E-Currency=3500 Balance=3500 C1 Balance sheet Liabilities Capital=1000 Loan=4500 Total=5500 Assets Projects=2000 E-Currency=3500 Total=5500 E Balance =3500 Balance sheet Liabilities Capital=1000 Loan=3500 Total=4500 Assets Projects=2000 E-Currency=2500 Total=4500 G Balance =2500 C2 Bank Balance sheet Liablilities Capital=0 Deposits C1=2500 C2=3500 G=2500 E=3500=12000 Total=12000 Assets Loans & adv=8000 E-Currency=4000 Total=12000 ECONOMY Balance sheet LIABILITIES CapitalRs. 8,000.00 Bank Deposits Rs.12,000.00 LoansRs. 8,000.00 TOTAL Rs.28,000.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 12,000.00 ProjectsRs 4000.00Loans & AdvRs 8000.00 TOTALRs. 28,000.00 9. Remun Rs 2000.00 Real wealth gets increased Thus the second income cycle is created Balance sheet Liabilities Capital=3700 Assets E-Currency=3700 Balance=3700 Balance sheet Liabilities Capital=5500 Assets E-Currency=5500 Balance=5500 C1 Balance sheet Liabilities Capital=1000 Loan=4500 Total=5500 Assets Projects=4000 E-Currency=1500 Total=5500 E Balance =1500 Balance sheet Liabilities Capital=1000 Loan=3500 Total=4500 Assets Projects=3200 E-Currency=1300 Total=4500 G Balance =1300 C2 Rs 1200.00 Bank Balance sheet Liablilities Capital=0 Deposits C1=3700 C2=5500 G=1300 E=1500=12000 Total=12000 Assets Loans & adv=8000 E-Currency=4000 Total=12000 ECONOMY Balance sheet LIABILITIES CapitalRs. 11,200.00 Bank Deposits Rs.12,000.00 LoansRs. 8,000.00 TOTAL Rs.31,200.00 ASSETS E-Currency (i) with bankRs. 4,000.00 (ii) with others Rs. 12,000.00 ProjectsRs 7200.00Loans & AdvRs 8000.00 TOTALRs. 31,200.00 10. To summarize

Global Economic Recession: T he E-Currency System is theonly remedyto the worldwide crisis, and the only Solution that addresses the root cause, of the global recession.

Terrorismcan be countered easily, since all transactions areaccounted forin this completely computerized system. Hence,unaccounted money becomes a thing of the past .

Safe and Secure monetary system:The Laboratory Research Model of theE-Currency Systemhas been validated by the technocrats to have three different layers of security in the software design, as well as three layers of protection in the electronic purse, or electronic store of money, which they call theElectronic Currency Pad . This Pad, being totally offline, removes any security threat found in the networked payment systems.

Sound and Robust monetary system:The Banking System we @ Electronic Currency Time.com have developed is comprehensive, efficient, and built on sound engineering principles.

Povertycan actually be alleviated, or even eradicated, since theReal Wealththat gets generated by theIncome Multiplier Effectin this case, tends toInfinity , because the income cycle can rotate in the economy any number of times in theE-currency System . The rotation of the income cycle is NOT limited by any cash reserve in this case, as all money is in digital form.

11. To summarize(contd.)

Money deposited in the banks is ALWAYS equal to the Money in circulation , keeping the intrinsic value of money at par. As a consequence, there isNO question of Monetary Inflationin this system.

There can NEVER be any Liquidity Crunch whatsoever, since all the money is deposited with the banks all the time, and can be used by all the citizens at the same time a dual pocket benefit of theE-currency System .

NOTE:

The concept has been implemented, and tested by this Team, as a Laboratory Research Model, a working prototype that proves its claims, and has also been widely publicized by two greatly respected global economic journals

The IJCCR(International Journal of Community Currency Research, England):

• http://www.uea.ac.uk/env/ijccr/abstracts/vol9(2)sharma.html

And the WFS(World Future Society, USA):

• http://www.wfs.org/sharma08.htm