Dynamic intelligent currency encryption
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Dynamic Intelligent Currency Encryption (DICE) is a technological concept proposed to enhance the security of paper currency. It aims to track and monitor banknotes in circulation by utilizing identifiable characteristics, allowing for the remote devaluation of banknotes implicated in fraudulent activities or criminal transactions. Developed in 2014 by the British-Austrian technology company EDAQS,[1][2] DICE introduces a security system wherein banknotes are equipped with Machine Readable Codes (MRC) or Radio-Frequency Identification (RFID) tags.[3] These banknotes are then registered to a centralized system, purportedly rendering them secure and resistant to forgery[citation needed].
One of the primary objectives of DICE is to engage the entire banking and retail sector in a system where cash circulation is passively monitored and controlled. Furthermore, DICE aims to provide an alternative to the complete abolition of physical currency. It proposes to offer the advantages of a cashless economy, such as reduced instances of cash-related crimes, without eliminating cash entirely.[4]
DICE shares similarities with Intelligent Banknote Neutralisation Systems (IBNS). Banknotes neutralized under the DICE system are intended to be permanently withdrawn from circulation and can be explicitly associated with specific criminal incidents.[citation needed]
Concept
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The concept relies on businesses and individuals who handle cash registering the banknotes through connected readers called DICE clouds. During the registration-procedure, the DICE user will be informed about the legitimacy of the incoming banknote and warned whether the banknote is part of a crime, is forged or has been degraded for a certain reason. Once the banknote has been successfully assigned to the user’s account, a robbery or destruction of the banknote through other catastrophes, such as a fire or a flood, would result in a remote devaluation of the notes. The account holder would receive new banknotes.
Technology
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The basic process consists of an identifiable banknote, which carries the identification module (machine-readable code or microRFID-chip), a blockchain-enabled cloud device, which scans, reads and registers the banknotes, and centralized software to manage registration and devaluation. The software system is based on a blockchain that provides a centralized registry of banknotes (such as the CEDIRE hyperledger), a system that deactivates or re-activates illegal and degraded banknotes remotely, and a dedicated unit whose task is to monitor the system's functionality.
In addition to MRC-equipped banknotes, DICE also proposed banknotes that use a microchip specifically designed to be both secure and durable. EDAQS claims that the RFIT microchip, developed by Australian partner RFIT Limited, meets these criteria. The chip measures 0.45 mm x 0.45 mm x 0.2 mm and places the antenna directly onto the chip silicon. EDAQS considers the RFIT chip to be more secure, as its read range is limited up to 3 mm and requires a specially designed near field antenna (NFA) to activate it, unlike standard RFID tags. Additionally, a normal UHF RFID reader cannot activate and read the tag. Every other aspect of the RFIT chip conforms to Electronic Product Code (EPC) Class 1, gen2 ISO 18000-6C.
Reception
[edit]EDAQS has contended that their system would allow central and national banks to more closely monitor cash circulation[5] without compromising the privacy of those who use cash.[6] EDAQS has also claimed that closer tracking of cash opens up new avenues for economic research.[7] The concept has been criticized by the German and Austrian Pirates Party.[8]
See also
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References
[edit]- ^ "Technik aus Wien entwertet Bargeld per Fernsteuerung (Ger)". ORF.
- ^ "DICE, the banknote of the future". keesingjournalofdocuments.com. Archived from the original on 2016-08-13. Retrieved 2016-07-21.
- ^ "Electronically devaluable banknotes developed (German)". diepresse.com.
- ^ "The Future Of Banknotes & How One Company Is Working To Prevent A Cashless Economy". LinkedIn Pulse. 18 May 2015. Archived from the original on 8 November 2020. Retrieved 21 July 2016.
- ^ "Neue Idee aus Österreich: Banknoten mit Chip fernsteuern(Ger)". FutureZone(Kurier).
- ^ "Banknoten mit RFID sollen entwertet werden können(Ger)". Golem.de.
- ^ "Bitcoin für Geldscheine: Der Chip, der das Bargeld retten soll(Ger)". DWN. 29 May 2015.
- ^ "Der gläserne Konsument". piratenpartei.at.