Patent AU-2019101249-A4 (AU)
Title: A Legal Tender to replace Fiat Currencies with National Digital Equivalents of Value (NDEV) during financial transactions
Inventor: TCHERKAS DMITRI
IPC: G06Q20/38
Filed: 2019-10-14
Granted: 2019-11-28
Abstract: Abstract We developed the concept of a legal tender named National Digital Equivalents of Value (NDEV) backed by national resources, such as gold, oil, diamonds, and even intellectual property and territories. This digital tender offers a technical solution to replace domestic fiat currency at the moment of purchasing goods or services. We propose to make a digital token (code) of an existing National Item of Wealth (NIW) and add registration parameters to the code, including geolocation to create Crypto Code. This Crypto code is valued by an exchange and backed by the NIW, which in turn is pegged to a declared National Equivalent of Value (NEV) or a proportion of the same, using the ability of the Crypto to be divided in parts. This allows adding other codes (references) to the parts to form National Digital Equivalent of Value (NDEV) for immediate financial transactions. The references (codes) as products of invented Reference Number System are processed with cryptographic tools to be searchable online and reflect details of transactions. Finance recipients make it possible to store NDEV with their associated details in a Highly Scalable Blockchain Network (HSBN) able to support two decentralized databases (one in another) for Crypto and NDEV for logistics and taxation purposes. Crypto and NDEV are digital codes with value pegged to a proportion of NEV expressed in NEV units (a proportion of 1kg of gold if a declared NEV is 1kg of gold). This provides the ability of Crypto to replace a certain volume of fiat currency and complete sales in equity (parity) between the requested volume of fiat currency and the NDEV proportion of the NIW, which equals a proportionate value of NEV. The fiat currency is replaced with a digital code pegged to existing NIW, with geolocation parameters attached and with the value of a proportion of a NEV (eg Gold, a part of 1 kg) and expressed in units of NEV measurement (1 g and below, 1 g, 100 g, 1 kg, 1 ton of gold of National Gold Reserve). NDEV is used without references to fiat currency and corresponds to a portion of NEV. With time, a NEV may be replaced by another NIW pegged to a Gold NEV with a Crypto code always backed by the exchange value of a NIW for transparency of business operations and fair trading. Figure 1. A concept to replace fiat currency with NDEV during sale NDEV -National NEV - National NIW - National Digital Equivalent of Equivalent of Value ItemofWealth Value Is a dividable Crypto Code is a nationally declared is an item of value with a with Fragment X by value item of value (1 kg of gold geolocation reference, equals a proportion of Gold of specified quality) able in e.g. 1 kg of Gold of NEV reflecting the value of a defined proportions to specified quality able to geolocation referenced correspond to value of be pegged by value to a proportion of a NIW and corendtovaleof gold NEV or other NEV measured (NDEV) in units, NIW and beexpressedinre expressed in proportion of 1 units of 1 kg of gold of withvalue expressed in kg of gold specified quality specified quality GoldNEVunits. with ability of the Crypto NIW can be a NEV by Code to receive and detach nature (gold NEV) or even additional codes (references NEV can be 1 kg of gold not a physical item, such for taxation and logistics) to (Gold NEV) as cryptocurrency, make it possible to use the intellectual items and Crypto Code with Fragment X territories again for an ongoing circuit of transactions. NDEV = Proportion of and NIW pegged to FIAT CURRENCY in its volume has parity in value with proportions * J of Gold NEV and NIW (Crypto Code Fragment X) at the moment of trade 1 Fiat currency by exchange value may be equal to a proportion of NEV or a proportion of a geolocation referenced NIW (1 kg of gold or other tokenized NIW) with value of fragment X of Crypto Code (digital token of NIW) measured in a gold weight equivalent (<1 g, 1g-lkg, over 1kg) of a gold NEV proportion. 2. At the moment of transaction fiat currency may be replaced by a proportion of the Crypto Code fragment X which is NDEV (Crypto Code with fragment X) with exchange value expressed in weight equivalent of gold of specific quality. NDEV is backed by geolocation referenced (existing in reality) NIW tokenized with a dividable Crypto Code with exchange value < 1 g, 1g-1 kg, over 1 kg of gold and may be used in the future as a legal tender without references to fiat currency. Used for replacement fiat currency is for redeeming.