German student makes Final Year Project on NEM Blockchain and gets A+
Meet Manas Goyal, a twelfth grader of a German-American bilingual school in Berlin, Germany. In Germany, students are required to choose a topic and form a presentation at the end of their school career. The presentation counts as much as seven percent towards the German High School Diploma (German Abitur).
Manas: “I was firmly convinced to pick a current, relevant topic. Since eighth grade, I was very interested in computer science, finance and economics. For that reason, I decided to choose computer science as a reference and economics as a supplementary subject. When paying at a local supermarket, I wondered what a world with a central bank-issued cryptocurrency would look like. This is when I decided to construct a presentation about the technical and economic conditions required for a cryptocurrency to be authorized as legal tender in the Republic of India. Shortly after that, I did some research and could only find two sources of information. I contacted various users on Telegram and eminent people familiar with this topic and came to the resolution that the NEM Blockchain offers a sustainable base for a central bank-issued digital currency.”
“The banking system in India is currently very bureaucratic. The transactions are very slow due to bank transfers and bank cheques. In Germany, every major bank has a bank sort code, whereas, in India, each branch has its bank code. Also, an annual KYC process is required. A central bank-issued cryptocurrency as a fiat currency could be a possible solution for a fast and only one-off KYC process would be necessary. Besides, transactions using blockchain technology could be carried out faster and cheaper.
For my analysis, I used the NEM blockchain as a basis. The advantage of the NEM blockchain is that you can create different versions of the Indian rupee through different mosaics. If a central bank decides that more money should be circulated, this can be achieved through new mosaics. Using the NEM Wallet provided by the NEM Foundation, I have created a separate cryptocurrency called eRupee, which is to serve as a model example. The eRupee was not created publicly and is therefore only visible in the Testnet, a great additional service provided by NEM. First, I rented a namespace. A namespace is something like a domain in the XEM Blockchain. I called this e-rupee-5-pk. There are currently around 20.15 trillion Indian rupees in circulation in India. For comparison, this is about 260 billion euros.
With my created cryptocurrency eRupee, you can create a maximum of 9 billion eRupee tokens within a Mosaic. If the Republic of India switched to the eRupee today, then the 20.15 trillion Indian Rupee, that is, the current total amount of money in circulation would have to be exchanged for the maximum availability of a token, being 9 billion.
This means that when changing from 2239 Indian rupees, the citizens of India would get an eRupee token in the NEM Blockchain. One important property of money is divisibility. This is guaranteed by the XEM Blockchain, because you can also have half an eRupee token, for example. Currency should be circulated in limited supply. In my created cryptocurrency eRupee, there is a maximum number of 9 billion tokens. This ensures that there is limited circulation of money. It was my job to analyse the technological and economic structures required for a central bank-issued digital currency. Although currently, no sovereign country has a central bank-issued digital currency, I found out that the XEM blockchain is the nearest contraption that fulfils major economic and technological necessities that are required.”
NEM Foundation: “We’re excited about Manas Goyal initiative and from the Foundation provided him a technical adviser to finish his project. We would like to invite all interested students to join our new FYP program. The student can receive technical accessory from NEM Foundation for her/his project and to form a part of NEM developers world infrastructure”