Canada to replace physical cash with new digital currency

Everything is going online today. Transactions, banking and shopping enjoy full-fledged online alternatives. Can you imagine that the very soon currency you have in your pocket is also to go online? Well, the Canadian government has proposed an idea to replace physical coins and currencies to a new e-currency, dubbed the MintChip. The R&D of the Royal Canadian Mint has suggested the idea that knells death of hard money.

MintChip to replace cash with e-currency

The MintChip is meant to help people pay directly from their handsets, computers, tablets, USB sticks and even clouds. This digital currency has several advantages. People will no more be expected to carry money in their pocket. The transactions will not be linked with your credit/debit cards or even a bank account, which is required even while you make payments through Near Field Communication. And finally, transactions take place instantly and securely.

The Royal Canadian Mint initially suggests the MintChip for small transactions like paying bus fare, charge for a song download and others. However, the technology can handle any amount of money and digitize all transactions. The new digital economy should be able to support small-value transactions like under $1 nanotransactions and under $10 micro transactions, Mint says.

Anyway, the Canadian government is yet to enter into the production stage of the new e-currency. For this, the government wants some advanced software and application support. The Mint has just invited software professionals to take part in a contest to design apps for the MintChip. The winner of the registered 500 software professionals will be awarded with solid gold wafers worth around $50,000.

Via: TheSta