Utilizing the knowledge gained from creating the world’s first Globally valid Digital currency and Clearing System, Webtel.mobi describes the exact primary requirements for a Global Digital Currency and Clearing System, and how external entities may contact it for assistance
Although 2021 has seen increased activity in the field of international discussion and planning in respect of CBDC development, the discussions and views are both diverse and divergent from each other. There is no central guiding point, and there are significant differences of opinion between the end-aims and objectives of CBDCs.
However, to ever be able to develop any system or product, there should first be clarity on what the end-results and requirements should be, and one should then work backwards to establish what should be done, how, and with what, to reach the end-objective. Only then can any meaningful and measurable progress be made towards achieving the end-objective.
When creating its system, Global Telephony Provider Webtel.mobi (“WM”) first took the time to establish the end-objectives with clarity, worked back from that point to establish the requirements for reaching the end-objective, and then took the time to create the required systems, facilities, and platforms in a fit-for-purpose manner.
There are no easy or quick routes for reaching this particular end-objective, and there is no “new” magic wand product to make it happen any more easily. The same requirements for systematic and steady identification and resolution of requirements that present themselves in any highly complex business or financial situations are called for.
To clarify what is required if creation of a Globally-Valid Digital Currency – and a Global Clearing System which must precede the Digital Currency – is being sought, some of the requirements (based on knowledge and fact, as WM has already created a Global Clearing System and Globally-Valid Digital Currency) are as follow:
A Global Deliverability and Accessibility System
By which to deliver – and for people to access – the Digital Currency. It cannot be a prevailing system because they exclude the 60% of people in high-cost and low-speed internet bandwidth / mobile-data countries, and the 50% of people worldwide using pre-smartphones. It will have to be custom-built.
A Global Account Number System
From which to carry out, or into which to receive, any receipts, transfers, payments, conversions or storage for a particular person or entity, on an automated basis. Given the complexity (and replication) of names globally, the disparity in standards and address formulations, this is not a trivial task.
A Global Multicurrency Wallet System
Into which multiple different currencies can be loaded and stored, where payments or transfers can be accepted or sent from, and between which conversions between currencies can be made.
A Global KYC and AML System
That is of one (high) standard worldwide, catering for multiple global differences in address and utility bill configurations, that has Attorney or Notary certification + Attorney + notary re-verification + verifications of attorneys or notaries + constant monitoring of transactions for various and multiple warning signs + documentary upload for transactions + transaction limits.
A Global Transfer System
That facilitates the automated transfer of all and any currencies, in all and any amounts, from one specific account to another specific account, worldwide 24/7/365, with multiple reporting and with failsafe mechanisms built-in.
A Global Payment System
That facilitates the automated transfer of all and any currencies, in all and any amounts, from one specific account to another specific account, worldwide 24/7/365, with multiple reporting and with failsafe mechanisms built-in. The equipment to make payments from, and receive payments into, must also be set up – and function globally in very different environments. It cannot be a system that has smartphone-only application, or which is run from a mobile app, or which has JavaScript in it.
A Global Currency Conversion System
That enables not just 24/5/365, but rather 24/7/365 immediate actual conversion capacity (otherwise currency risk is extreme), from, to and between all currencies – without the requirement for currency pair conversions or conversion from a soft currency first into a reserve currency and then conversion to another soft currency.
A Global Payment-versus-Payment (PvP) and Real Time Gross Settlement (RTGS) System
This is an absolute requirement – and it must be 100% and immediate PvP / RTGS – because otherwise the risk of systemic failure is extreme (for example, even the current legacy systems function in a state of perpetual danger, because it is estimated by the BIS that approximately 50% of all FX transactions are unsecured).
A Global Recording and Reporting System
For every single transaction, transaction type, individual balances, system balances, account alterations and all and any of the (hundreds of) data inputs or alterations. This to be retained by the system and automatically provided to the transacting parties and automatically checked for inconsistencies / suspicious events.
A Global Customer Support System
From both technical and customer-support perspectives (i.e. having physical people present at a physical premises), in all parts of all countries worldwide.
A Global System to Accept and Convert Cash (safely)
Unless one wishes to exclude 60% of the world’s population that transact only in cash due to choice or – more frequently – due to lack of infrastructure to accept or transact in any other medium of exchange, a system to accept and convert cash into digital funds – with safeguards to prevent money laundering which can be applied worldwide despite the disparity in global norms and standards – must be created.
A Global Multi-Factor Authentication and an additional +/- 30 Security Systems
Every transaction must have multi-factor authentication and at least 30 other security systems – that include systemic and owner confirmations – must be created and implemented.
A Global Troubleshooting System
A global troubleshooting system must be created to instantly locate and redress any issues arising on any one of the (thousands of) sub-systems. It should be able to instantly follow all transactions’ flows from their inception, and have the capacity to freeze, cancel or reverse them, if necessary, from cradle to grave.
The above systems are only one-third of those that must be created – but they are among the most important. Each requires from 20 to over 200 sub-systems to function. All of them must be integrated into one system, and inter-connected to each other (systems and sub-systems).
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The integrated systems and sub-systems must be built according to specific system architectures, and located in multiple countries for failsafe continuation of service and prevention of data loss in the event of failure due to natural or other disaster. They must also be able to seamlessly integrate / function with existing Legacy Systems.
The above comprises only the front-end systems. They exclude the back-end system, which is hundreds of times more complex than the front end. Very many of these absolute prerequisites do not yet even form part of the current discussions by other parties in their quests to develop a Global Digital Currency or CBDC.
All of the above systems include WM’s Blockchain ++ and Distributed Ledger++ – but only as very basic sub-parts of the systems’ structure. The other requirements are far more numerous, sophisticated and complex.
Once creation of the Global Clearing is completed – and only then – can one create the Global Digital Currency. The Currency must be built to work in the System, because a System cannot be built to work around a currency in a back-to-front process.
The Global Digital Currency must be:
- A liquid store of value, unit of account, medium of exchange that is acceptable as a standard of deferred payment, which has a stable value.
- That is recognizable, identifiable, acceptable, transferable, divisible, consolidateable, transferrable, convertible between currencies, fungible, portable, durable, homogenous per currency, non-counterfeitable, and with other security components.
- That can be utilized for all basic transactions requiring the use of a medium of exchange, and can also be utilized for all sophisticated, structured finance or structured instrument transactions requiring the use of structured mediums of exchange.
- That can also be converted back into “Bank Money” or cash (and with WM’s impending “Secured TUV” – can be converted to Physical Gold, and with WM’s Impending “Smart TUV”, that can be programmed).
To complete the construction of one component System of a Global Clearing System can take up to a year (regardless of resources, as there is much to do, carefully, and it takes time) – and there are many component Systems within a Clearing System.
After the completion of a required Global Clearing System, to then complete the creation of the Digital Currency will be similarly time-consuming. This is because – although this is not yet realized by the parties discussing such matters – every aspect of the Clearing System itself has to be built into the actual Digital Currency (unseen – operating in the back-end). Although this process is more rapid because one is working from the existing Clearing System, it is, nevertheless, also extremely time-consuming, with attention to detail required.
WM’s Global Digital Currency and Global Clearing System are completely built, tested and proven worldwide, due diligenced, refined, re-reviewed and are fully operational globally. To replicate such a system will take many years to do – even if one is provided with the complete roadmap of precisely what to do.
Consequently, WM is very confident of its position – to the extent that it will willingly assist any credible organization by providing comments and observations if they would like to make enquiries, as there is absolutely no possibility of any challenge to WM’s system for many years to come. Indeed, WM has already been contacted by representatives of some Central Banks with propositions for collaboration on these matters.
While WM is prepared to provide assistance to other credible entities on these matters, it follows a specific methodology for providing such assistance, for the following reasons:
- It is not yet realized by the various entities striving to attain the goal of a Global Digital Currency what extraordinary capacity reaching the attainment of such a situation brings about.
- In the first instance, it provides access to every single market where every medium of exchange is used in every currency and every country worldwide – from the smallest cash transactions to the largest Global Settlement and Global FX markets – and everything in-between. Moreover, it grants this access to provide replica services to all others at much lower costs, much higher speeds and much more security – so it has the potential to secure whole parentages of global money flow. The commercial and financial potential is extraordinary, and has not yet been able to be achieved in commercial history to date – until now, with WM being the first company to achieve it.
- If misused, it also has the capacity to introduce destabilizing factors on a systemic basis. Therefore, extreme restraint and care must also be applied – as WM has done at all times, and as it continues – and will continue – to apply.
- One of the requirements for a company with such an overwhelming product is to adopt an absolutely neutral, non-aligned and transparent posture in respect of all activities – including the provision of advice or assistance. This is to prevent any alarm or agitation arising from certain countries / Central Banks / other entities – once they realize what the capacities of such a system are – that rival countries / Central Banks / other entities may be gaining this advantage over them.
Consequently, WM will provide advice and assistance to any credible entities, if:
- Any such credible entities then openly and publicly disclose that they are interacting with WM in respect of these matters.
- The entities accept that WM will not enter into sole agreements or closed collaborative association with them, and that any other entity will receive equal assistance from WM if it is requested at any time.
If credible entities are agreeable to these terms, WM will assist them in any manner. If not, WM will unfortunately not be able to assist them.
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[To share your insights with us, please write to sghosh@martechseries.com]
