SLIDE 1 IFSB Capacity Building
Blockchain Based Digital Payment System
Presented By
Co-Founder & Managing Director HLC Foundation
https://github.com/qitmeer
SLIDE 2
CONTENTS
PART ONE
Overview of the Project
PART TWO
Q Payment Solution
PART THREE
Business Development
SLIDE 3 LOGO
Overview of the Project ONE
This project is partnership with Central Bank of Nigeria in order to provide Qitmeer payment system Solutions to build a decentralized, cost-efficient, approximate real-time, inter bank and cross boarder payment platform to connect rural banks to each other and to national commercial banks, using Qitmeer network payment system based on BlockDAG. This effectively brings rural banks into the domestic financial system and increases access to the communities in which they
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LOGO
Q Payment Solution Objectives
The Q payment platform is aiming to service millions of previously unbanked Nigerians with this Q payment solution as the first financial inclusion in the Africa region. This project is a blockchain based solution to the Nigerian payments system. However, it will operate as the country’s first Qitmeer Blockchain based payment network for cross boarder payment, settlement, domestic remittances, and Tokenization of Naira.
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BANK B BANK C BANK D Central Bank
A B C D
70
120
BANK A
Settlement Mechanism Clearing Mechanism
Current Traditional Payment System
1
High Cost of Operations, Branches, ATMs, etc.
2
Complex Clearance and Settlement System
3
Cross Boarder Payment Transfer Slow
4
Lack of AML/KYC Traceability Solution
ONE
Key Issues:
SLIDE 6 Ledger
Business Central Bank Commercial Bank A
Users
Traders
Mechants Commercial Bank B Ledger Ledger Ledger Ledger
PoW and UTXO model with collaboration model enables a secured, traceable and scalable ledger for all banks. Disruptive Clearance and Settlement System KYC/AML Management and Traceability Fast Local and Cross Boarder Payment Settlement Cyber Resilience and Secured System Up to almost Visa transaction per second enables the high speed of transactions inter countries or cross boarders Cash settlements are hard to trace, however all token transactions histories are recorded in the blockchain Same secured level as Bitcoin which has been proved for more than 10 years guaranteed by consensus and algorithms
Blockchain-based Q Payment Solution ONE
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Comparison between Traditional Payment and Q Payment ONE
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Index Traditional Payment Q Payment Clearance and Settlement Local Transfer Cross Border Payment Remittance Peer to Peer Transaction Per Second (TPS) NA As fast as VISA Transparency
Comparison between Traditional Payment and Q Payment ONE
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Improve Cost-efficiency
02
Overcome the Limitations of Existing Systems
03
Reduce Operational Risks and Running Cost
04
Improve Speed of Transaction Settlements
01
Permit the recording of transactions of any asset05
Q Payment Solution Benefits to Central Banks
It cuts operational costs which banks are targeting and reach the customers at the edge of wireless and not just bank accounts. Improve Payment System Ability to 24 *7 Operation 06 money, equities, bonds, over-the counter derivatives- as well as cash, allowing multiple simultaneous changes to the ledger
ONE
– The system is resilient and can cope with cyber attacks Transaction settlement, especially for cross boarder payment settlement can be done in seconds It will increase efficiency and reduce reconciliation costs in securities clearing and settlement It doesn't need the central
SLIDE 10 LOGO Tracking Payments
Tracking where and when VAT has been paid, and in doing so reduce VAT fraud
Consistent Data Set
Helping multinational companies provide a consistent data set for multiple tax authorities
Data Supply
Giving tax authorities and other regulators more confidence in the data supplied to them
Verifying in Jurisdictions
Verifying judgements and assumptions involved in establishing the profit global businesses make in different jurisdictions
More Visibility
Giving more visibility to micro transactions such as those done by individuals as part of the sharing economy
Q Payment Solution Benefits for Tax Collection ONE
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Rapid Local and Cross-boarder Payment Facilitate Trade Finance Easy Registration for an Account Lower Cost of Transactions
Q Payment Solution Benefits to Users and Consumers ONE
Transfer money at any time without
No Need to always bring cash
SLIDE 12 TWO Overview of Qitmeer Network
Cutting Edge Public Chain Based on Block DAG Act as the Guardian for the Core Financial Ethical Values Ecosystem Focuses on Ethical Finance and Financial Inclusion Qitmeer is the first public chain that is dedicated to serving the ecosystem of ethical finance, socially responsible investment and Islamic Finance, which aims to act as the overall financial infrastructure to seamlessly converge all these areas, thereby enhancing financial inclusion. Qitmeer is a new generation-public chain based on Block DAG which adopts a collaboration model in the mining
the traditional competitive model, thereby achieving a desirable balance of typical blockchain metrics, such as the security, openness, fairness and scalability. Reserving Base Currency For Asset Tokenization
Security Openness Fairness Scalability
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TWO Technology Overview BlockDAG Token/Asset/Liquidity Payment
WASM
J.P. Morgan Quorum™
Toke n
Layer-2: off-chain Payment + Layer-1: native Payment
BLOT compatible
VM compatible
Layer 1 (native) + Layer 2 Cross-chain Atomic-swap
eWASM
ILP compatible
Fiat Currency
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LOGO Consensus: Pow + BlockDAG
OP_TOKEN asset issuance mechanism Assets backed up by base currency Interoperation with all the mainstream blockchain network
CONSENSUS Cross-chain UTXO BLOCKDAG DATA STRUCTURE
PoW Spectre GhostDAG Inclusive
TWO Technical Underlying Structure
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Technology Highlights TWO
Assets Authentication Measure
Require an ecosystem endorsement for anchors to issue asset.
Inclusion
Multiple cross-chain protocols to integrate various use cases.
Security
Nearly Real Time Instant Confirmation. Highly scalable throughput secures mainstream adoption.
Scalability
Fast confirmation to seconds order, high throughput to thousands order.
Intrinsic Value
Guarantee Tokens are reserved by native currency, which is mined by Proof-of-work.
Fairness
Fair Mining model based on cooperation
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LOGO
TWO Digital Asset Wallet for E- Naira
As a professional digital asset wallet, it has unique competitive advantages that a set of mnemonic words can create a multi-chain wallet, making it easy to backup; Users can hold their private keys and complete smart contract matching without trusting a third party, which is efficient and transparent. It supports cross-chain transactions of various public chains, and it enables users to experience the advantages of Qitmeer public chain in terms of security and fast transactions. The KYC registration will be the first step for users to have their digital wallet account where all data will be uploaded to central bank private data system for verifications and tracking with daily limitation of transaction controlled according to central bank rules.
KYC Registration Ultimate security Fast Payment Settlement Diverse DApps https://app.kahf.io/ https://testflight.apple.com/join/gAyuTI6A Android: Iphone:
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Digital Currency Exchange TWO
Easy to Use, Easy to Access, Advanced Trading Functionalities, KYC/AML Available
Digital currency exchange is a peer-to-peer Exchange run by code. It usually exists as an application (DApp). It is a place where people can trade digital currencies directly without a middleman
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Digital Payment System Model
Tokenization of Naira is best viewed as a form
- f infrastructure or foundational layer for
digital currency that will generate immense value for the digital asset's ecosystem E- Naira could help create a tipping point for much broader digital currency adoption by successfully addressing concerns around volatility, the tokenized Naira payments system could be designed to flow as easy as sending messages without compromising regulations control, monetary policy, personal privacy, and increase the influence of Naira globally.
Digital Currency Backed by Equivalent Amount of Fiat Currency Fiat Deposits
Central Entity Issuer/Wallet /Custodian
Issuance of Fiat- Backed Digital Currency
Merchants
Digital Currency Exchanges Trading of fiat-backed digital currency
THREE
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Central Bank Digital Currency (CBDC) Design Principles THREE
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1
The CBDC is a form of central bank money that is at par with other forms of central bank money, such as cash and reserves
2 3 4 5 6 7
The CBDC is token based, while the reserve is account based It has a separate operational architecture from other forms of central bank money, allowing the CBDC to serve an entirely different core purpose The CBDC may be interest-bearing and, under reasonable assumptions, may pay a different interest than the reserve Compared with central bank reserves, the CBDC allows a wider range
subjects to access (the former is accessible only to commercial Banks, some payment institutions and foreign central Banks, etc., while the latter is designed to allow access to commercial Banks, non- bank financial institutions, households and companies). In addition to supporting retail payments, CBDC supports cross-border payments. In contrast, cash is mainly a retail payment instrument and reserves are mainly used for interbank clearing The CBDC's issuance mechanism could be different from cash and reserves, for example by supporting different collateral and allowing a wider range
subjects to participate in CBDC issuance
Central Bank Digital Currency (CBDC) Characteristics THREE
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LOGO
Central Bank
Accounting System
Central Bank
Digital Currency System
Commercial Bank
Digital Currency System
Apply for E-Naira Bank Repository receives E-Naira
Examination and Approval Initiate the Deposit Reserve deduction Examination and Approval The deposit reserve is deducted to the issuing fund
E- Naira Issuing Procedures THREE
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CBDC Economic Model THREE
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Exchange Transaction Types and Operation Flows THREE
Selling/buying deposits to/from other private sector counterparties in exchange for central bank eligible collateral (e.g. government bonds) Sell/buy CBDCS to/from households and firms in exchange for bank deposits Sell/buy bonds to/from the central bank in exchange for the CBDC 01 02 03 Enter into repurchase agreements with the central bank to borrow/return the CBDC 03
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LOGO
E- Naira issued on the second Layer of Qitmeer Network pegged to Naira Currency
E- Naira Issuance by Qitmeer
Qitmeer underlying infrastructure as the ledger of Nigeria central bank for a fast and secured clearance
Underly Infrastructure for Bank Clearance
The third layer applications to operate the daily transactions of Naira and E- Naira settlements
Applications for Payment Solutions
01 02 03
QITMEER NETWORK E- Naira APPs
1 2 3
Financial Inclusion Case
Q Payment System For Central Bank Of Nigeria (CBN) THREE
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THREE Project Core Team Members
- Prof. Abdussalam I. Onagun
Co-founder, is an acknowledged industry expert in the philosophy of blockchain technology within the Islamic Economy
Abdullah Han
Co-founder, has more than ten years extensive experience of marketing strategy, e-business strategy, and technology management across Africa, Middle East, Southeast Asia, and North America.
Advisor, a world-renowned leader and authority in the Islamic financial services industry (IFSI) both at the professional and academic level.
Advisor, Serial entrepreneur in Islamic financial services, thought-leader in Takaful-Islamic Insurance
Kokila Alagh
Lawyer, has 15 years of experience as a corporate, commercial, media and tech lawyer in UAE Advisor, PhD degree of Tsinghua University. Independent researcher on blockchain technology, monetary and financial theory, and Central bank digital currency of China.
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THREE Project Core Team Members
Sam
Cross Chain team leader, 12 years experience, good at JS, participated in LVT, NatureToken etc. projects development Mining Algorithm leader, was the R&D Director
Holdings, 16 years developing experience E-wallet Project Manager, was the R&D Director of Newegg China, 15-year developing experience, expert in Front & back end development
Eric Logan Tony
DAG Researcher, 11 years software developing experience, DAGFans founder, Master of AUS in computer Science
SLIDE 27 Qitmeer News and Speeches THREE
HLC Foundation Joined Islamic Financial Services Board (IFSB) As Observer Member Meeting with His Eminence Sultan of Sokoto, Nigeria Meeting the chairman of Jaiz Bank H.E. Alhaji
Meeting with His Excellency Sokoto State Governor IsDB 44th annual meeting in Marrakech, Abdullah Han was invited as a speaker on Blockchain and Islamic Finance HLC Public Chain – Qitmeer Open Source Launch Event Securities Commission Malaysia World Bank conference 2019, Abdullah as speaker Meeting with H.R.H Prince Talal Bin Badr Bin Abdulaziz Al Saud
SLIDE 28 World's leading Islamic finance news
Dubai Airport Free Zone Authority IFN FINTECH
Qitmeer Media Coverage THREE
CNBC Interview
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Strategic Corporation With Global Financial Institutions THREE
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LOGO www.hlc.com +971 4 321 2643 www.qitmeer.io
THANK YOU
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LOGO
Reserve Fund Cash CBDC CBDC CBDC CBDC CBDC CBDC CBDC CBDC CBDC CBDC Exchange Central Bank Commercial Bank Households & Firms Bank Loan Bank Deposit Bank Loan Bank Deposit Bank Deposit Bank Deposit Non-bank Financial Institutions
Households and businesses use financial services provided by non- bank financial institutions
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CBDC Exchange Central Bank Commercial Bank Households & Firms Non-bank Financial Institutions CBDC Debts CBDC Expenses Bank Deposit
Purchase bonds by CBDC Exchange Deposit The exchange maintains a float
and deposits
