Creating the future of money
Many know our QUASAR technology as the solution for connecting the ‘Internet of Things’ economy with the traditional financial systems. By providing digital wallets to IoT devices, these devices can make and receive payments with minimal transaction costs and at high speeds. However, many are not aware that QUASAR actually has the potential to serve as the basis for the future of money and transactions, also outside of IoT. In this blog we will explain you how
The first steps toward CBDC’s
It has been 5 years since our co-founder Gaston Hendriks together with one of our earliest employees Martijn van Eijk designed QUASAR. At that time, ‘stablecoins’ were still a relatively new phenomenon and there were almost no talks yet of Central Bank Digital Currencies (CBDC’s). Yet, Gaston and Martijn had already found a way to connect blockchain-based transactions to the traditional fiat currency world by using a hierarchical account structure.
Such a hierarchical account structure is very interesting and important, because it allows for asset issuing by a central authority and account control by account providing entities like banks. The assets of the QUASAR system should be considered as traditional cash in a digital form. The same KYC and AML rules will apply for withdraws and deposits of electronic cash as for traditional cash to a bank account. To comply with these rules, the interface between money on a bank account and the electronic cash asset in the customer wallets is always controlled by the bank. The first steps toward CBDC’s… 5 years ago!
The final steps toward CBDC’s
Over the years, the Quantoz team has realized that we need to take two more steps to make QUASAR the ideal solution for CBDC’s. First, the red (anonymous) wallets as described in the original QUASAR whitepaper can’t be used for Central Bank Digital Currencies. However, by introducing spending limitations to these wallets, which will become available soon, this problem is solved. Secondly, it is important to take care of interbank settlements. While this wasn’t originally described in the whitepaper, we have successfully implemented this in a project with a client, showing our ability to consistently adapt and innovate.