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--- cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start [2022/05/06 15:50]
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 ====== 4.2.1 Digital Cash Model ======
-[[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start| Return to Currency Models]]
+|< 100% >|
+| [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:start| Return to Currency Models]]  |  <WRAP>
+<html><b>
+<a href="mailto:[email protected]?Subject=OMG's CBDC WG Response:
+.2.1 Digital Cash Model
+">Provide Feedback</a></b>
+</html>
+</WRAP>  |
 ===== Overview =====
-[[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
+[[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
 Almost all Cryptocurrencies implemented so far use the concept of tokens, accounts, wallets, transactions, and distributed ledgers. In essence, these approaches model the way money is handled in bank accounts((
 % (if not all) issued Initial Coin Offering (ICO) tokens on top of the Ethereum implements the ERC-20 standard.
 [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.b_stds:defact:ethereum:eip:erc_0020]]
-)). However, the CBDC could also be modeled on actual cash (i.e., <nowiki>$0.01</nowiki>, \$0.05, \$0.10, \$0.25, \$0.50 coins and \$1, \$2, \$5, \$10, \$20, \$50 and \$100 bills), in essence creating a true **Digital Dollar**. The Digital Dollar would create a [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:c:coins | digital coin]] for each of the denominations, with no further fractions. For example, a \$100 digital coin would only represent a value of $100.00 US Dollars. Representing more money would be done by collecting more \$100 digital coins, just like a real physical wallet. Representing values less than \$100 US dollars would be done using the other U.S. denominated Digital Coins (i.e., \$1, \$5, etc). However, the Federal Reserve could issue other denominations that are higher than the \$100 bill if it chooses((
+)). However, the CBDC could also be modeled on actual cash (i.e., \$0.01, \$0.05, \$0.10, \$0.25, \$0.50 coins and \$1, \$2, \$5, \$10, \$20, \$50 and \$100 bills), in essence creating a true **Digital Dollar**. The Digital Dollar would create a [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:c:coins | digital coin]] for each of the denominations, with no further fractions. For example, a \$100 digital coin would only represent a value of $100.00 US Dollars. Representing more money would be done by collecting more \$100 digital coins, just like a real physical wallet. Representing values less than \$100 US dollars would be done using the other U.S.-denominated Digital Coins (i.e., \$1, \$5, etc). However, the Federal Reserve could issue other denominations that are higher than the \$100 bill if it chooses((
 The Federal Reserve Board currently issues \$1, \$2, \$5, \$10, \$20, \$50, and \$100 notes. The largest denomination Federal Reserve note ever issued for public circulation was the \$10,000 note.
-On July 14, 1969, the Federal Reserve and the Department of the Treasury announced that banknotes in denominations of \$500, \$1,000, \$5,000, and \$10,000 would be discontinued due to lack of use. Although they were issued until 1969, they were last printed in 1945.
+On July 14, 1969, the Federal Reserve and the Department of the Treasury announced that banknotes in denominations of \$500, \$1,000, \$5,000, and \$10,000 would be discontinued due to lack of use. Although they were issued in 1969, they were last printed in 1945.
 [[https://www.federalreserve.gov/faqs/currency_12600.htm]]
-)). In addition, The Federal Reserve could create smaller denominations than the penny (i.e., $0.01). These denominations are impractical and too costly for real currencies, but could be useful for micropayments (see **'' B0040 ''**). The smallest denomination would most likely be limited in granularity to the cost of running the Consensus Algorithms (See the [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.k_consensus:start | OMG DIDO-RA discussion on Consensus]]).
+)). In addition, The Federal Reserve could create smaller denominations than the penny (i.e., $0.01). These denominations are impractical and too costly for real currencies but could be useful for micropayments (see **'' B0040 ''**). The smallest denomination would most likely be limited in granularity to the cost of running the Consensus Algorithms (See the [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.k_consensus:start | OMG DIDO-RA discussion on Consensus]]).
-The End User could use a Digital Cash Wallet to hold their Digital Cash. These wallets could hold not only US Digital Currencies, but also other currencies, such as Digital UK Pounds, EU Euros, Japanese Yen, etc. The characteristics of Digital Cash are much like real cash, although there are no reasons an End User can not have and use only cash. At some point, in order to manage risk from loss, theft, damage, etc., it is best to put the cash into an account at some financial institution such as a bank, savings, and loan, credit union, etc.
+The End User could use a Digital Cash Wallet to hold their Digital Cash. These wallets could hold not only US Digital Currencies, but also other currencies, such as Digital UK Pounds, EU Euros, Japanese Yen, etc. The characteristics of Digital Cash are much like real cash, although there are no reasons an End User can not have and use only cash. At some point, in order to manage risk from loss, theft, damage, etc., it is best to put the cash into an account at some financial institution such as a bank, savings, loan, credit union, etc.
 One could also allow Digital Cash to be bundled and processed into a Digital Cash Wallet. The Digital Cash Wallet would be very similar to an actual wallet. It would contain a collection of Digital Cash coins or Certificates in an array of Digital Currency Denominations.
 ==== Digital Cash Theoretical User Scenario  ====
-[[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
+[[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
-  : **Note:** The following Digital Cash Theoretical User Scenario is only provided for discussion purposes. Actual User Scenarios would be developed during systems analysis and modeled using a Model-Based Systems Engineering (MBSE) approach and address the problem in far more detail with a team of experts.
+  : **Note:** The following Digital Cash Theoretical User Scenario is only provided for discussion purposes. Actual User Scenarios would be developed during systems analysis and modeled using a Model-Based Systems Engineering (MBSE) approach and address the problem is far more detail with a team of experts.
-  : **Note:** Also look at the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start#digital_account_theoretical_user_scenario | Digital Account Model Theoretical User Scenario]].
+  : **Note:** Also look at the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start#digital_account_theoretical_user_scenario | Digital Account Model Theoretical User Scenario]].
 In the following example, the CBDC is modeled as a collection of Stablecoins, each one representing a form of physical cash (i.e., \$0.01, \$0.05, \$0.10, \$0.25, \$0.50 coins and \$1, \$2, \$5, \$10, \$20, \$50 and \$100 bills). The End User would actually "own" these Stablecoins and consequently, they would have all the same shortcomings as their physical equivalent. For example, if the Stablecoins are lost, damaged, or stolen, there is no "back-up". Contrast this with a Digital Account Model, where there are all kinds of safeguards protecting the asset.
@@ Line 33: / Line 40: @@
 <figure transactionFlow>
-{{  cbdc:private:cbdc_omg:04_doc:40_currencies:screen_shot_2022-03-10_at_1.31.46_pm.png?950  |}}
+{{  cbdc:04_doc:40_currencies:screen_shot_2022-03-10_at_1.31.46_pm.png?950  |}}
 <caption>Simplified Digital Cash Flow</caption>
 </figure>
@@ Line 39: / Line 46: @@
   * Table {{ref>initialWallet}} represents the initial contents of a Digital Cash Wallet of an End User. Each Digital Cash coin (Certificate) in the wallet, such as the five /$100 coins, is signed by the owner of the Digital Cash Wallet. If there are Digital Cash Certificates that are not signed by the owner, they can not be used for the transaction.
-  * Table {{ref>initialStore}} represents the initial contents of at Digital Cash Till at a store. Each Digital Cash Certificate, such as the ten /$100 coins, is signed by the store that owns the Digital Cash Till. If there are Digital Cash Certificates that are not signed by the store, they can not be used for the transaction.
+  * Table {{ref>initialStore}} represents the initial contents of Digital Cash Till at a store. Each Digital Cash Certificate, such as the ten /$100 coins, is signed by the store that owns the Digital Cash Till. If there are Digital Cash Certificates that are not signed by the store, they can not be used for the transaction.
 <columns 100% 50% - ->
@@ Line 152: / Line 159: @@
 ===== Example =====
-[[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
+[[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Return to Top]]
-There are three categories of requirements alluded to in the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper]] and identified within the [[https://www.omg.org/ | Object Management Group ]] [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]]:
+There are three categories of requirements alluded to in the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper]] and identified within the [[https://www.omg.org/ | Object Management Group's ]] CBDC WG [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper Analysis]]:
   * **Digital Cash Model** - these are requirements with CBDC characteristics most closely aligned with the simple coin cash model
-  * **Digital Account Model** - these are requirements with CBDC characteristics most closely aligned with the [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Digital Account Model]] (i.e, savings, checking, investment, direct pay, credit, debit cards, etc. )
+  * **Digital Account Model** - these are requirements with CBDC characteristics most closely aligned with the [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start| Digital Account Model]] (i.e, savings, checking, investment, direct pay, credit, debit cards, etc. )
-  * **Research Areas** - these are requirements with CBDC characteristics most closely aligned as "research" models such as [[cbdc:private:cbdc_omg:04_doc:15_common:30_stablecoins:start| Stablecoins]]
+  * **Research Areas** - these are requirements with CBDC characteristics most closely aligned as "research" models such as [[cbdc:public:cbdc_omg:04_doc:15_common:30_stablecoins:start| Stablecoins]]
-In this discussion, only the requirements identified during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:private:cbdc_omg:15_summary:start | White Paper Analysis]] are considered. Table {{ref>AccountTypeReqiurements}} represents the allocated of requirements germane to the Digital Cash Model.
+In this discussion, only the desirements were identified during the [[https://www.omgwiki.org/CBDC/doku.php?id=cbdc:public:cbdc_omg:15_summary:start | White Paper Analysis]] are considered. Table {{ref>AccountTypeRequirements}} represents the allocated of requirements germane to the Digital Cash Model.
-<table AccountTypeReqiurements>
+<table AccountTypeRequirements>
-<caption>Mapping a subset of Digital Cash Model requirements identified within the White Paper Analysis conducted by the OMG</caption>
+<caption>Mapping a subset of Digital Cash Model requirements identified within the White Paper Analysis conducted by the OMG's CBDC WG</caption>
-|< 100% 20% ->|
+|< 50% 20% 30%>|
 ^ Category  ^ Desirements  ^
-^ Benefits                    | B0003, B0004, B0007, B0009, B0013, B0018, B0020, B0022-1, B0022-2, B0022-3, B0024, B0028, B0029, B0034, B0036, B0040, B0042
+^ Benefits                    | B0003, B0004, B0007, B0009, B0013, B0018, B0020, B0022-1, B0022-2, B0022-3, B0024, B0028, B0029, B0034, B0036, B0040, B0042 |
 ^ Policies and Considerations | P0004, P0027, P0029 |
 ^ Risks                       | R0013 |
 ^ Design                      | D0001, D0006, D0007, D0009 |
+| **''B''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#benefit_considerations| Benefit Considerations ]] ||
+| **''P''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#policy_considerations| Policy Considerations]] ||
+| **''R''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#risk_considerations| Risk Considerations ]] ||
+| **''D''** = [[cbdc:public:cbdc_omg:04_doc:12_summary:start#design_considerations | Design Considerations]] ||
 </table>
-  : **Note:** **''B''** = Benefit, **''P''** = Policy, **''R''** = Requirement, **''D''** = Design.
+==== Example Discussion ====
+[[cbdc:public:cbdc_omg:04_doc:20_comments:brp:q02:start| Return to Top]]
-===== Example Discussion =====
+Table {{ref>DigitalCurrencyExm}} provides a summary of using a [[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Dollar Model]] instead of a Digital Account, Cryptocurrency or Stablecoin Models.
-[[cbdc:private:cbdc_omg:04_doc:20_comments:brp:q02:start| Return to Top]]
-Table {{ref>DigitalCurrencyExm}} provides a summary of using a [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Dollar Model]] instead of a Digital Account, Cryptocurrency or Stablecoin Models.
 <table DigitalCurrencyExm>
-<caption>Example of mapping a subset of requirements identified in the White Paper Analysis conducted by the OMG.</caption>
+<caption>Example of mapping a subset of requirements identified in the White Paper Analysis conducted by the OMG's CBDC WG.</caption>
 |< 100% 5% 30% ->|
 ^ Desirement No.  ^ Desirement Text  ^ Comment  ^
@@ Line 190: / Line 199: @@
 </WRAP>|
 ^ B0005, P0005 ^ Protect against criminal activity | <WRAP>
-Once a criminal activity is detected, the Digital Dollars collected as part of the investigation can provide invaluable information for the prosecutors as to the origins of the money.
+Once criminal activity is detected, the Digital Dollars collected as part of the investigation can provide invaluable information for the prosecutors as to the origins of the money.
 </WRAP>|
 ^ B0009 ^ Provide faster and cheaper payments (including cross-border payments)  | <WRAP>
@@ Line 202: / Line 211: @@
 </WRAP>|
 ^ B0040 ^ Provide micropayment support  | <WRAP>
-Micropayments are financial transactions involving very small amounts of money and usually occur online. A number of micropayment systems were proposed and developed in the mid-to-late 1990s, all of which were ultimately unsuccessful.((
+Micropayments are financial transactions involving very small amounts of money and usually occur online. A number of micropayment systems were proposed and developed in the mid-to-late 1990s, all of which were ultimately unsuccessful. ((
 __Micropayment__,
 Wikipedia,
@@ Line 211: / Line 220: @@
 ^ B0046 ^ <WRAP>
 Enable rapid and cost-effective delivery of:
-  - wages,
+  : 1. wages,
-  - tax refunds
+  : 2. tax refunds
-  - other federal payments
+  : 3. other federal payments
 </WRAP> | <WRAP>Digital Coins would be immediately available.
 </WRAP>|
@@ Line 223: / Line 232: @@
 </WRAP>|
 ^ D0001 ^ Design should be for a non-interest-bearing CBDC, for example, would be less attractive as a substitute for commercial bank money  | <WRAP>
-[[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Dollars]] would be for all intents and purposes be the same as current paper money. It does not accumulate interest until it is deposited in a financial institution.
+[[cbdc:public:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start| Digital Dollars]] would be for all intents and purposes be the same as current paper money. It does not accumulate interest until it is deposited in a financial institution.
 </WRAP>|
 </table>
-===== Recommendations =====
-[[cbdc:private:cbdc_omg:04_doc:20_comments:brp:q02:start| Return to Top]]
-The [[https://www.omg.org/ | Object Management Group (OMG)]] is an unbiased, non-partisan, [[https://www.omgwiki.org/dido/doku.php?id=dido:public:ra:xapend:xapend.a_glossary:s:sdo | Standards Developing Organization (SDO)]] and makes no recommendation at this time as to which [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:start | Currency Model]] to use:
-  * [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:10_cash:start     | 4.2.1 Digital Cash Model]] - Tokens
-  * [[cbdc:private:cbdc_omg:04_doc:15_common:08_currency_models:15_accounts:start | 4.2.2 Digital Account Model]] - Accounts

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