Towards an ethical online Payment system
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Towards an Ethical Online Payment System
Marwa Yousif
Abdi O. Shuriye
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OUTLINES
• The Economy of Deception
• The Story Behind Central Banks
• The Global Financial Crisis: What Has Happened?
• Alternative? the Bitcoin System
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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
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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
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The Economy of Deception
To Market the Culture of Spending
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OUTLINES
• The Economy of Deception
• The Story Behind Central Banks
• The Global Financial Crisis: What Has Happened?
• Alternative?, the Bitcoin System
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Central Banks
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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.
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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
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OUTLINES
• The Economy of Deception
• The Story Behind Central Banks
• The Global Financial Crisis: What Has Happened?
• Alternative?, the Bitcoin System
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The Global Financial Crisis What Happened??
The Monetarism Theory, and the Federal Reserve Roles
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The Global Financial Crisis
The American Dream and the Housing Boom
Fancy, Luxurious Houses
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A Dream?
Cheap Money
Low Interest Rates Fancy Houses
Luxury
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Or a Nightmare??
Subprime Debts
Foreclosures
Interest Rates Rise
Defaults
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The Global Financial Crisis
The American Dream and The Housing Boom
It Was a Nightmare, and Still Is!
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Inflating the Subprime Bubble
Selling Loans: Mortgage- Backed Securities MBSs
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The Fall
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The Fall Cont.
They have triggered a subprime tsunami that has nearly drown the World Economy
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The Fall cont.
And More
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Credit Cards
Credit cards- Backed Securities is a $365 billion market (2008)
21st Century Slavery
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OUTLINES
• The Economy of Deception
• The Story Behind Central Banks
• The Global Financial Crisis: What Has Happened?
• Alternative? the Bitcoin System
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Bitcoin
designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities
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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.
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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.
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Securing the Bitcoin System
By implementing Public- Key Cryptography, and Proof- of- Work Concepts
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Conclusion
Riba Verses, Albaqara