1. Fintech Chapter 3: MONEY: A MEDIUM OF EXCHANGE, UNIT OF ACCOUNT AND STORE OF WEALTH

2. Money
Wealth
Income

3. Money
Medium of Exchange
Unit of Account
Store of Value

4. Medium of Exchange Wide acceptance/network effects.
Not subject to extreme volatility.
Confidence
Standardized.
Right size/denominations
Portable.
Durable.
Secure.

5. Unit of Account Have wide applicability Reduce transaction costs.
Reduces information gathering costs.

6. Store of Value Store or “bank” purchasing power for later consumption.
Provide transfer of capital to higher economic purposes.
No hyperinflation.

7. Measuring Money

11. Trends in Noncash Payments
Debit cards
Credit cards
Checks
ACH

13. Financial System Plumbing: How credit cards work

15. Financial System Plumbing: the Automated Clearing House

17. Fintech Applications
Cryptocurrencies
ICOs
Blockchain
Payments

18. Cryptocurrencies Bitcoin Ethereum IOTA Litecoin Ripple
Many, Many others

19. ICOs
What are they
SEC
PBOC

20. Blockchain
How does it work
Disruptive implications
Applications

21. Bitcoin benefits Its fast Its cheap
Central government can’t take it away
No chargebacks
People can’t steal your information from merchants
It isn’t inflationary
It can be anonymous
You own it.

22. Bitcoin minuses Not widely accepted Denominations
Can be used for illegal purchases
Can be used for money laundering
Security
Scale questions
Investor protections

23. Payments Consumer to consumer Consumer to business-typically retail
Business to business
Point of Sale
Card not present
Tie in to Big Data
Typically, front end systems, leveraging existing infrastructure.

24. Fintech companies
PayPal
Square
Stripe
Venmo
mPesa