E-Paper Money

Recently the Swedish banks failed miserably to replace use of cash with a cash card. Maybe a compromise solution would have promise. Clients could produce their own bills in the correct currency and denominations, via e-paper and have their accounts debited. The following features might be included:

An e-wallet that would look like a conventional wallet but would have a PIN, a keypad and would contain blank and “printed” e-paper money. The e-wallet could be loaded with a sum via a bank, a cash machine or a WAP connection. It could then print, erase or change its e-paper notes, adjusting the sum and eventually the bank account.

The e-paper, in a standard size, would have little worth until it is “printed” with the electronic ink as legal tender in a variety of currencies and denominations. It would feel and look like existing bills to be used for payment to individuals or businesses with or without e-paper money capabilities. The e-money would have to incorporate security features and any printing, re-printing or erasure would lead to a change in the account balance.

Cash machines could have additional functions for paying out e-money, outputting blank e-money paper and loading an e-wallet with an amount. Business cash registers could, like e-wallets, print, change and erase e-money.

The advantages would include less cash to carry and pay, easy payment abroad, being faster than checks and more secure than mag-stripe cards. Though allowing new denominations like a £30 note might be workable, using decimal amounts such as a $15.95 bill to eliminate coins would seem problematic. This scheme seems so obvious, though less than practical, but I’ve found no mention of it.