Cash, Corruption and Economic Development

Have you ever asked yourself what gives comfort to someone who demands and accepts a bribe, sells drugs or commits professional crimes for money? The majority of these people are not wealthy, and they accept small amounts of money every day from their victims.Cash, Corruption and Economic Development examines the causes of corruption and crime and highlightswhat bringscomfort to all those who accept bribes and kickbacks, arguing that it is paper currency becauseit does not leave a signature of its movement from one entity to another. The author proposes that today, with the technology available, we can make the transition to a paper currency-free economy, which will helpreduce corruption and crime and give a boost to economic development. The book analyses the causes of corruption and presents areplacement forthe current model, to be implemented bya central bank and followed by banks operating within its jurisdiction.This book will be of interest to economists, students of economics and finance, and all those who have suffered as a result of corruption and professional crime and wantthese practicesto end.

List of illustrations Preface 1 We the people Impact of corruption on development Impact of movement of dirty money on development Factors impacting the level of corruption An honest bottom cannot have a corrupt top Trade brings economic development Development has to be sustainable 2 Corruption no more Impact of transition on corruption Impact of transition on economic development How are payments made after transition to a paper currency- free economy? Transfer of money The use of fake currency Our fight against crime Our right to privacy of information The sellers of contraband Collection of tax revenue Solutions for the visually impaired, elderly and those who may lack literacy The threat of digital fraud The threat of digital fraud – cont’dThe transition does not need smartphones or computers You can travel alone An active step 3 The technicalities Partial or complete transition The cost of transition Factors influencing transition Ability to open a bank account with a fake identity The speed of processing Development of alternative currencies The legal tender The electronic currency The electronic currency account The rolling out of the system The rolling out of the system – cont’d Why does a central bank need the ability to monitor the electronic currency accounts of banks in real time? How is the authenticity of electronic currency verified? Recalling and replacement of paper currency – the most important factor for transition Recalling and replacement procedure – cont’d 1 Recalling and replacement procedure – cont’d 2 Recalling and replacement procedure – cont’d 3 Recalling and replacement procedure – cont’d 4Recalling and replacement procedure – cont’d 5 Need for paper currency to settle international transactions Which currency is used and which bank accounts are affected when entities settle their transactions? Undirectional conversion needs oversight and direction Platforms for the electronic transfer of money How will criminals evade the system? Central bank is in the centre The choice rests with us Index

Vikram Vashisht is a Certified Practising Accountant (CPA), Master of Accounting, Bachelor of Laws (LLB) and Bachelor of Commerce (BCom), and has previously served as a finance officer in the Australian Army.