The year 2008 became an important period of change in history year for the debt money system, and the debt money system does not work. Two papers were published which could fundamentally transform the current debt money system into a new economic system of public money. The accounting system dynamics macroeconomic model by Kaoru Yamaguchi and the one on Bitcoin by Satoshi Nakamoto. Provided technological breakthroughs in peer-to-peer transaction systems.
A Peer-to-Peer Electronic Cash System (p2p)
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Peer-to-peer (P2P) services are decentralized platforms that enable two people to communicate with each other without the use of a middleman. Instead, using the P2P service, the buyer and seller conduct their business directly.
On January .3, 2009, the genesis block, the very first block in the ever-increasing blockchain for bitcoin transactions was successfully mined on the internet. Bitcoin was originally referred to as ”peer-to-peer electronic cash” by Satoshi Nakamoto.
Cash can be substituted by electronic cash. Electronic digits are stored in electronic cards as prepaid money in exchange for currency (coins and bank notes), and used for transactions. Some well-known examples are PayPal, ApplePay, Square Reader(NFC), and Square Stand. The traditional service charge for a credit card is between 5% and 8%.
Public Money System
Public money is put into circulation to sustain economic growth and welfare interest-free. Under the proposed public money system commercial banks are no longer creators of deposits, Under the public money system, monetary stability is restored and government debts are liquidated. P2P payment services are available to mobile phone users through a variety of apps.
Some P2P payment apps are provided by banks, hence they require bank accounts. Through PayPal, users can also make payments using a credit or debit card. Through this service, customers can make digital payments in place of checks or money orders. The quicker send-and-receive time makes these digital transfers more effective payment options.