IFSB Capacity Building
on
Blockchain Based Digital Payment System
Presented By
Mr. Abdullah Han Guangyu
Co-Founder & Managing Director
HLC Foundation
www. qitmmer.io
https://github.com/qitmeer
CONTENTS
PART ONE
Overview of the Project
PART TWO
Q Payment Solution
PART THREE
Business Development
LOGOOverview of the ProjectONE
This project is partnership with Central Bank of Nigeria in order to
provide Qitmeer payment system Solutions to build a
decentralized, cost-efficient, approximate real-time, inter bank
and cross boarder payment platform to connect rural banks to
each other and to national commercial banks, using Qitmeer
network payment system based on BlockDAG.
This effectively brings rural banks into the domestic financial
system and increases access to the communities in which they
operate.
LOGO
Q Payment Solution Objectives
The Q payment platform is aiming to service millions of previously unbanked Nigerians with this Q payment
solution as the first financial inclusion in the Africa region.
This project is a blockchain based solution to the Nigerian payments system. However, it will operate as the
country’s first Qitmeer Blockchain based payment network for cross boarder payment, settlement, domestic
remittances, and Tokenization of Naira.
LOGO
BANK B
BANK C
BANK D
Central Bank
A B C D
-50 70 -80 120
BANK A
Settlement
Mechanism
Clearing
Mechanism
Current Traditional Payment System
1 High Cost of Operations, Branches, ATMs, etc.
2 Complex Clearance and Settlement System
3 Cross Boarder Payment Transfer Slow
4 Lack of AML/KYC Traceability Solution
ONE
Key Issues:
Ledger
Business
Central
Bank
Commercial
Bank A
Users
Traders
Mechants
Commercial
Bank B
Ledger
Ledger
Ledger
Ledger
PoW and UTXO model with collaboration model
enables a secured, traceable and scalable ledger
for all banks.
Disruptive Clearance and Settlement System
KYC/AML Management and Traceability
Fast Local and Cross Boarder Payment Settlement
Cyber Resilience and Secured System
Up to almost Visa transaction per second enables the
high speed of transactions inter countries or cross
boarders
Cash settlements are hard to trace, however all token
transactions histories are recorded in the blockchain
Same secured level as Bitcoin which has been
proved for more than 10 years guaranteed by
consensus and algorithms
Blockchain-based Q Payment SolutionONE
Comparison between Traditional Payment and Q PaymentONE
Index Traditional Payment Q Payment
Clearance and Settlement
Local Transfer
Cross Border Payment
Remittance
Peer to Peer
Transaction Per Second (TPS)
NA As fast as VISA
Transparency
Comparison between Traditional Payment and Q PaymentONE
LOGO
Improve Cost-efficiency 02
Overcome the Limitations of
Existing Systems03
Reduce Operational Risks
and Running Cost04
Improve Speed of
Transaction Settlements01
Permit the recording of transactions of
any asset05
Q Payment Solution Benefits to Central Banks
It cuts operational costs which banks are
targeting and reach the customers at the
edge of wireless and not just bank
accounts.
Improve Payment System
Ability to 24 *7 Operation06
money, equities, bonds, over-the counter
derivatives- as well as cash, allowing
multiple simultaneous changes to the ledger
ONE
– The system is resilient and can
cope with cyber attacks
Transaction settlement, especially for
cross boarder payment settlement can be
done in seconds
It will increase efficiency and reduce
reconciliation costs in securities
clearing and settlement
It doesn't need the central
operator to be online
LOGO
Tracking Payments
Tracking where and when VAT
has been paid, and in doing so
reduce VAT fraud
Consistent Data Set
Helping multinational companies
provide a consistent data set for
multiple tax authorities
Data Supply
Giving tax authorities and other
regulators more confidence in
the data supplied to them
Verifying in Jurisdictions
Verifying judgements and assumptions
involved in establishing the profit global
businesses make in different jurisdictions
More Visibility
Giving more visibility to micro
transactions such as those done
by individuals as part of the
sharing economy
Q Payment Solution Benefits for Tax CollectionONE
LOGO
Rapid Local and Cross-boarder Payment
Facilitate Trade Finance
Easy Registration for an Account
Lower Cost of Transactions
Q Payment Solution Benefits to Users and ConsumersONE
Transfer money at any time without
operation time limitationNo Need to always bring cash
TWO Overview of Qitmeer Network
Cutting Edge Public Chain
Based on Block DAG
Act as the Guardian for the Core
Financial Ethical Values
Ecosystem Focuses on Ethical
Finance and Financial Inclusion
Qitmeer is the first public chain that is dedicated to serving the
ecosystem of ethical finance, socially responsible investment and Islamic
Finance, which aims to act as the overall financial infrastructure to
seamlessly converge all these areas, thereby enhancing financial
inclusion.
Qitmeer is a new generation-public chain based on Block DAG which
adopts a collaboration model in the mining over the traditional
competitive model, thereby achieving a desirable balance of typical
blockchain metrics, such as the security, openness, fairness and
scalability.
Reserving Base Currency For
Asset TokenizationSecurity Openness Fairness Scalability
LOGOTWO Technology Overview
BlockDAG
Token/Asset/Liquidity
Payment
WASM
J.P. Morgan Quorum™
Token
Layer-2: off-chain Payment+
Layer-1: native Payment
BLOT compatibleVM compatible
Layer 1 (native) + Layer 2 Cross-chain
Atomic-swap
eWASM
ILP compatibleFiat Currency
LOGO
Consensus: Pow + BlockDAG
OP_TOKEN asset issuance
mechanism
Assets backed up by base
currency
Interoperation with all the
mainstream blockchain network
CONSENSUS
Cross-chainUTXOBLOCKDAG
DATA STRUCTURE
PoW Spectre GhostDAG Inclusive
TWO Technical Underlying Structure
LOGOTechnology HighlightsTWO
Assets Authentication MeasureRequire an ecosystem endorsementfor anchors to issue asset.
InclusionMultiple cross-chain protocolsto integrate various use cases.
SecurityNearly Real Time Instant Confirmation.
Highly scalable throughput secures mainstream adoption.
ScalabilityFast confirmation to seconds order,
high throughput to thousands order.
Intrinsic Value Guarantee Tokens are reserved by native currency,
which is mined by Proof-of-work.
FairnessFair Mining model based on cooperation
LOGOTWO Digital Asset Wallet for E- Naira
As a professional digital asset wallet, it has unique competitive advantages that a set of
mnemonic words can create a multi-chain wallet, making it easy to backup; Users can
hold their private keys and complete smart contract matching without trusting a third
party, which is efficient and transparent. It supports cross-chain transactions of various
public chains, and it enables users to experience the advantages of Qitmeer public
chain in terms of security and fast transactions.
The KYC registration will be the first step for users to have their digital wallet account
where all data will be uploaded to central bank private data system for verifications and
tracking with daily limitation of transaction controlled according to central bank rules.
KYC Registration Ultimate security Fast Payment Settlement Diverse DApps
https://app.kahf.io/ https://testflight.apple.com/join/gAyuTI6AAndroid: Iphone:
LOGODigital Currency ExchangeTWO
Easy to Use, Easy to Access, Advanced Trading Functionalities, KYC/AML Available
Digital currency exchange is a peer-to-peer Exchange run by code. It usually exists as an application
(DApp). It is a place where people can trade digital currencies directly without a middleman
LOGODigital Payment System Model
Tokenization of Naira is best viewed as a form
of infrastructure or foundational layer for
digital currency that will generate immense
value for the digital asset's ecosystem
E- Naira could help create a tipping point for
much broader digital currency adoption by
successfully addressing concerns around
volatility, the tokenized Naira payments
system could be designed to flow as easy as
sending messages without compromising
regulations control, monetary policy, personal
privacy, and increase the influence of Naira
globally.
Digital Currency
Backed by Equivalent Amount of Fiat Currency
Fiat Deposits
Central Entity
Issuer/Wallet/Custodian
Issuance of Fiat- Backed Digital Currency
Merchants Digital Currency Exchanges
Trading of fiat-backed digital currency
THREE
LOGOCentral Bank Digital Currency (CBDC) Design PrinciplesTHREE
LOGO
1The CBDC is a form of central bank money that is at par
with other forms of central bank money, such as cash and
reserves
2
3
4
5
6
7
The CBDC is token based, while the reserve is account
based
It has a separate operational architecture from other
forms of central bank money, allowing the CBDC to
serve an entirely different core purpose
The CBDC may be interest-bearing and, under
reasonable assumptions, may pay a different interest
than the reserve
Compared with central bank reserves, the CBDC allows a
wider range of subjects to access (the former is
accessible only to commercial Banks, some payment
institutions and foreign central Banks, etc., while the latter
is designed to allow access to commercial Banks, non-
bank financial institutions, households and companies).
In addition to supporting retail payments, CBDC supports
cross-border payments. In contrast, cash is mainly a retail
payment instrument and reserves are mainly used for
interbank clearing
The CBDC's issuance mechanism could be different from
cash and reserves, for example by supporting different
collateral and allowing a wider range of subjects to
participate in CBDC issuance
Central Bank Digital Currency (CBDC) CharacteristicsTHREE
LOGO
Central BankAccounting System
Central BankDigital Currency System
Commercial BankDigital Currency System
Apply for E-Naira
Bank Repository receives E-Naira
Examination and Approval
Initiate the DepositReserve deduction
Examination and Approval
The deposit reserve is deducted to the issuing fund
E- Naira Issuing ProceduresTHREE
LOGOCBDC Economic ModelTHREE
LOGOExchange Transaction Types and Operation FlowsTHREE
Selling/buying deposits to/from other
private sector counterparties in
exchange for central bank eligible
collateral (e.g. government bonds)
Sell/buy CBDCS to/from
households and firms in exchange
for bank deposits
Sell/buy bonds to/from the central
bank in exchange for the CBDC
01
02
03
Enter into repurchase agreements
with the central bank to borrow/return
the CBDC
03
LOGO
E- Naira issued on the second Layer of Qitmeer Network pegged to Naira Currency
E- Naira Issuance by Qitmeer
Qitmeer underlying infrastructure as the ledger of Nigeria central bank for a fast and secured clearance
Underly Infrastructure for Bank Clearance
The third layer applications to operate the daily transactions of Naira and E- Naira settlements
Applications for Payment Solutions
01
02
03
QITMEER NETWORK
E- Naira
APPs
1
2
3
Financial Inclusion Case
Q Payment System For Central Bank Of Nigeria (CBN)THREE
LOGOTHREE Project Core Team Members
Prof. Abdussalam I. Onagun
Co-founder, is an acknowledged industry expert in the philosophy of blockchain technology within the Islamic Economy
Abdullah Han
Co-founder, has more than ten years extensive experience of marketing strategy, e-business strategy, and technology management across Africa, Middle East, Southeast Asia, and North America.
Prof. Datuk Rifaat
Advisor, a world-renowned leader and authority in the Islamic financial services industry (IFSI) both at the professional and academic level.
Dr. Omar Fisher
Advisor, Serial entrepreneur in Islamic financial services, thought-leader in Takaful-Islamic Insurance
Kokila AlaghLawyer, has 15 years of experience as a corporate, commercial, media and tech lawyer in UAE
Advisor, PhD degree of Tsinghua University.
Independent researcher on blockchain
technology, monetary and financial theory, and
Central bank digital currency of China.
Dr. Baitao Long
LOGOTHREE Project Core Team Members
Sam
Cross Chain team leader, 12 years experience, good at JS, participated in LVT, NatureToken etc. projects development
Mining Algorithm leader, was the R&D Director of Haier Financial Holdings, 16 years developing experience
E-wallet Project Manager, was the R&D Director of Newegg China, 15-year developing experience, expert in Front & back end development
Eric LoganTony
DAG Researcher, 11 years software developing experience, DAGFansfounder, Master of AUS in computer Science
Qitmeer News and SpeechesTHREE
HLC Foundation Joined Islamic Financial Services Board (IFSB) As Observer Member
Meeting with His Eminence Sultan of Sokoto, Nigeria
Meeting the chairman of JaizBank H.E. Alhaji Dr. Umaru Abdul Mutallab
Meeting with His Excellency Sokoto State Governor
IsDB 44th annual meeting in Marrakech, Abdullah Han was invited as a speaker on Blockchain and Islamic Finance
HLC Public Chain – Qitmeer Open Source Launch Event
Securities Commission Malaysia World Bank conference 2019, Abdullah as speaker
Meeting with H.R.H Prince Talal Bin Badr Bin Abdulaziz Al Saud
World's leading Islamic finance news Dubai Airport Free Zone Authority IFN FINTECH
Qitmeer Media CoverageTHREE
CNBC Interview
LOGOStrategic Corporation With Global Financial InstitutionsTHREE
LOGO
www.hlc.com
+971 4 321 2643
www.qitmeer.io
THANK YOU
LOGO
Reserve Fund
Cash
CBDC
CBDC CBDC
CBDC
CBDC
CBDCCBDC
CBDC
CBDC
CBDC
Exchange
Central BankCommercial
BankHouseholds
& Firms
Bank Loan
Bank Deposit
Bank
Loan
Bank
Deposit
Bank
Deposit
Bank Deposit
Non-bank
Financial
Institutions
Households and businesses use
financial services provided by non-
bank financial institutions
LOGO
CBDC ExchangeCentral Bank
Commercial
Bank
Households
& Firms
Non-bank
Financial
Institutions
CBDC
Debts
CBDC
Expenses
Bank Deposit
Purchase bonds
by CBDC
Exchange
Deposit
The exchange
maintains a float
of CBDC, bonds
and deposits