Business

The Evolution of Money? Canadian Mint Announces Plans for Digital Currency

The Royal Canadian Mint has announced that it is developing a digital alternative to cold, hard cash. They’re calling it called “MintChip.”

“Still in the research and development phase, MintChip will ultimately let people pay each other directly using smartphones, USB sticks, computers, tablets and clouds,” The Star reports.

“The digital currency will be anonymous and good for small transactions — just like cash,” the report adds.

Watch the official introductory video on MintChip (via MintChipChallenge):

“There’s been a very huge growing digital economy that is really going to be fueled by smartphones and mobile being the next big thing,” Mint’s chief financial officer Marc Brûlé said.

However, as the video clearly states, the project is still in the developmental stage or, as Gawker puts it, “Canada is making it up as it goes along.” To get the project moving, the mint is offering a reward for whoever helps make the idea of an all-digital currency a possibility.

“[T]he mint is offering $50,000 in an old-fashioned currency — gold — to winners of a contest aimed at developing smart-phone apps and other ways of demonstrating MintChip’s benefits as a payment system for consumers,” Calgary Herald reports.

The contest “is a way for us to enlist software developers in creating proofs-of-concept highlighting the potential advantages of such a technology,” Christine Aquino, the mint’s director of communications, said on Thursday.

But websites like PayPal and Google already offer digital wallets! What’s the difference?

According to the mint, the biggest difference between “MinChip” and already-existing online “wallets” it that “MintChip” will have zero personal information attached to it and it will be backed by the mint.

“It’s still too early for specifics such as how the Mint will make a profit from this, how it will prevent hackers from stealing cash, whether the money is anyway traceable or who exactly will load a chip with money, but Brûlé said the response to the contest has been tremendous,” The Star reports.

As Gawker’s Caity Weaver writes: “Let’s just see how this one plays out.”

Comments (66)

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  • JoeJericho
    Posted on April 12, 2012 at 3:25pm

    Why does Canada need to reinvent the wheel? Apparently, Sweden, the inventor of paper money, is going to get rid of paper and coins soon because of their digital monetary system. So, ask the Swedes what they are doing. As for me, I’m not interested in giving up my cash. Heck, we shouldn’t have left the Gold standard either. Imagine all of your “credits” being wiped out. No thanks. When you pay with currency, it is real.

    Report Post »  
    • woodyb
      Posted on April 12, 2012 at 4:17pm

      WOW!!!!!!!!!!

      A credit card you can use on your computer!!!!!!!!

      Report Post »  
    • Zorro6821
      Posted on April 13, 2012 at 12:39pm

      Progress is good…no one is re inventing the wheel, just making the wheel work more efficiently. I love progress and embrace innovation. That is (Was) the American…err Canadian Way.

      Report Post »  
  • tharpdevenport
    Posted on April 12, 2012 at 2:54pm

    “Annonymous”? This will be about as annonymous as Sandra Fluke’s sex life cost

    I can’t say why, but something about this news leaves me very concerned.

    Report Post » tharpdevenport  
  • THX-1138
    Posted on April 12, 2012 at 2:31pm

    I always thought the Anti-Christ would turn out to be Canadian….

    Report Post » THX-1138  
    • Col. HawK
      Posted on April 12, 2012 at 6:44pm

      I don’t think you understand…. All your transactions will be secure, in a special chip way….Canada Rocks….. Eh! :)

      Report Post » Col. HawK  
  • therealdeal2012
    Posted on April 12, 2012 at 2:24pm

    Bitcoin already does this! http://www.weusecoins.com its 100 times better!

    Report Post »  
  • conservativehatemonger
    Posted on April 12, 2012 at 1:44pm

    This is just the government’s attempt to eliminate any untaxed transactions. Now your garage sale income, income from sale of anything else, eBay, etc will all be reportable and taxed.

    Report Post »  
    • A Doctors Labor Is Not My Right
      Posted on April 12, 2012 at 2:11pm

      There’s a couple very bad things about digital money.

      First, it can be inflated forever. Which means that those who are forced to use it will be slaves forever. No escape.

      Second, digital money, if accepted by the public, would seem to give the government the authority to regulate the Internet under the color of authority to “regulate commerce” – even though the Constitution specifically establishes a silver and gold standard.

      This is extremely dangerous.

      Report Post »  
    • Do The Right Thing
      Posted on April 12, 2012 at 8:48pm

      Bingo!!!

      Report Post » Do The Right Thing  
    • ruoncrack
      Posted on April 12, 2012 at 9:48pm

      exactly correct. This is all about eliminating non-taxed trasactions

      Report Post »  
  • Sicboy
    Posted on April 12, 2012 at 1:20pm

    What will they do when an app is developed to steal the money from your smart Phone? Implant it in your hand? Wait, that sounds like a great idea.

    Report Post » Sicboy  
  • South Philly Boy
    Posted on April 12, 2012 at 1:14pm

    Hey, Ilike the PINK ones

    Report Post » South Philly Boy  
  • MrSunshine
    Posted on April 12, 2012 at 1:08pm

    Mint chip? dang it, I thought this was going to be about ice cream!

    Report Post » MrSunshine  
  • 2small2succeed
    Posted on April 12, 2012 at 12:55pm

    Proabably need a small transaction fee too (lol)

    Report Post »  
  • ShyLow
    Posted on April 12, 2012 at 12:45pm

    mind your business…Just think of all the drug addicts that can’t pay for their fix in cash , if you have pain killers for legit purposes , you’ll have to be armed to the teeth , and if you purchase somthing to barter with , the government will have a computer program that moniters all your purchaces , so you better be able to show all the things you have bought when the authorities show up at your door…Also makes it easy for the government to give healthy eating rewards buy putting money in your account for buying healthy food

    Report Post » ShyLow  
    • nothingtohide
      Posted on April 13, 2012 at 10:00am

      Your right this is a BAD idea. Also does this mean that if they put it in you its the mark of the beast? If so Im gonna starve.

      Report Post »  
  • InversionTheory
    Posted on April 12, 2012 at 12:10pm

    We really do need to do something about our currency and I don’t know what. A return to fully backed bimetalism (paper money issued with 100% backing in gold and or silver) is a return to sound currency, but will not allow the mass transactions that need to take place to keep our economy moving. Fiat paper currency is not sound and fully electronic currency compounds the issue. Government funds running low? Just add a few zeroes to the balance sheet! This makes inflation EVEN EASIER to set on a runaway course. And what happens if the government decides that you don’t deserve your electronic money anymore? Could they just invalidate your money? Where is the security? Where is the stability?

    Paper or electronic funds are really easy to deal with, but they have to be backed with some thing REAL that we all agree has lasting value. In a world of iPods and smartphones… I would propose backing currency with energy. There are fairly limited sources based on existing technology, but it could also scale in that energy cannot really be stored well, so we would produce as much as was ACTUALLY demanded by the market and yes, any Tom, Dick or Harry could snag one of those stationary bikes hooked to a generator and produce energy to fill up the bank account… But anyone who’s ever actually ridden one of those will tell you how much work it is to power a 40-watt lightbulb. It won’t be that easy to get rich that way. Just a thought.

    Report Post »  
    • Havok
      Posted on April 12, 2012 at 12:42pm

      So no more need to get the right paper, or identical plates to counterfit, just find a good hacker to add about 10 zero’s onto your account.

      Report Post » Havok  
    • ShyLow
      Posted on April 12, 2012 at 1:03pm

      Pennys used to be backed by wheat…wheat is used to make the stuff that makes bread rise…Jesus is the bread from heaven…on the 14th day of the first month is someones birthday

      Report Post » ShyLow  
    • disgustedAmerican
      Posted on April 12, 2012 at 2:46pm

      Shylow, you are wrong. Wheat does not make bread rise, it is the yeast’s by product that does. Leavening is a waste product. Jesus is not the bread. The unleavened bread is a symbol for memorial to his crucifixion and resurrection. To say that he “is” the bread equates us all to cannibalism, this is where the heresy of catholicism arises. True Christian followers know that there is no need for sacrifice, because Jesus was the last sacrifice. The communion bread and wine is as such, broken unleavened bread and unleavened “blood” of grapes (pure grape juice, not alcohol). Broken bread= remembering( key word there) the broken body of Christ/ Blood of grapes= remembering the cleansing of the blood of Christ. To refer to it as a literal is blasphemy.

      1 Corinthians 11:24 And when he had given thanks, he brake it, and said, Take, eat: this is my body, which is broken for you: this do in REMEMBRANCE of me.

      11:25 After the same manner also he took the cup, when he had supped, saying, This cup is the new testament in my blood: this do ye, as oft as ye drink it, in REMEMBRANCE of me.

      Communion is to be used as memorial, not sacrificial.

      Report Post » disgustedAmerican  
    • ShyLow
      Posted on April 12, 2012 at 8:53pm

      @disgustedamerican To paraphrase Jesus…“bite me” …and to anyone that has followed my story , Penny was born on the 14th day of the 1st month…nails of the cross measured in pennys…Abraham on the penny…Just the tip of the iceburg

      Report Post » ShyLow  
  • love the kids
    Posted on April 12, 2012 at 11:56am

    I live 20 minutes from Canada and travel there several times a year, I guess that will all come to an end. Also, what are you going to do about all of our Canadian friends that come to the USA paying cash to get treated for medical services that aren’t being taken care of in Canada???

    Report Post »  
    • HorseCrazy
      Posted on April 12, 2012 at 12:30pm

      creepy isnt it. I too own land right by the border and we travel to vancouver frequently. this isn’t cool this “new money” it is creepy. Well on the good side I guess all of our loonie’s will be collectors items. The royal canadian mint prints some of the most gorgeous money in the world I buy their collectors coins every year for stocking stuffers. would hate to see the mint go digital.

      Report Post »  
  • Tri-ox
    Posted on April 12, 2012 at 11:47am

    Don’t fall for it folks.

    Report Post » Tri-ox  
  • Itsjusttim
    Posted on April 12, 2012 at 11:26am

    Yep, digital money, and don’t forget the bar-codes on people’s arms, and don’t forget the flying monsters/ machines with stings in their tails, and the reporting of earthquakes everywhere. And I also know you’re not forgetting the part where fire comes down out of Heaven, I know you’re not forgetting to implement that too.

    Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 11:32am

      See, because I knew if it was written like that 2000 years ago, that you would do your best to make it come true. Lol. Of course, you’re not thinking that technology and more actually exists in the universe, while you are making-believe making Revelation come to life.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 11:39am

      Had it not been for the writing of the Book of Revelation, people would not have been so inclined to invent technology. That’s funny.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 11:53am

      See, the Book of Revelation was written as it is because to cause men to build their Kingdom above God’s Kingdom. Because if God would have shown men space-ships and very far advanced technology it would have killed the spirit of men, and men would have just said “Give me” with their hand stuck out.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 11:58am

      You’re all working for God, you’ve always been working for God.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 12:11pm

      So you see, God knows that men are wicked in their heart, and so God knew that if he told men “Not” to do things, that men would do things God didn’t want them to do, which is actually just what God wants them to do so men build up their Kingdom to God’s Kingdom, and therefore God can come dwell with men [without the spirit of men dying] when they see the Lord in all his glory.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 12:13pm

      And it’s like that that Satan works for the Lord Almighty, but Satan knows it not.

      Report Post » Itsjusttim  
    • Itsjusttim
      Posted on April 12, 2012 at 12:21pm

      Therefore “The Faithful” who keep the faith, and believe that Jesus did the miracles he is credited with, they should keep on believing that Jesus did the miracles he did. Keep the faith, because people will try to show you indisputable evidence that Jesus didn’t perform miracles. Keep your Faith!

      Report Post » Itsjusttim  
    • MrSunshine
      Posted on April 12, 2012 at 1:11pm

      Hey Tim, I think I hear Nurse Ratched calling your name.

      Report Post » MrSunshine  
  • MountainJac
    Posted on April 12, 2012 at 11:26am

    Well now all Persia has to do is wait until everything is digital. Then let an EMP do it’s damage.

    Report Post »  
    • Intense66
      Posted on April 12, 2012 at 11:36am

      Yea…that’s kinda scary! But what isn’t anymore, right?

      Report Post » Intense66  
    • starchaser57
      Posted on April 12, 2012 at 1:45pm

      Read the book to ONE SECOND AFTER by William R. Forstchen. It is a out what life after an EMPLOYEES. Well worth the read.

      Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on April 12, 2012 at 11:21am

    So the next question will be – how long until someone finds a means to hack these systems and then transfer amounts of funds into their own accounts w/o trace or trail left behind. This also will allow any government to just ‘shut off’ access to accounts and electronic funds as well at a whim.

    Report Post » Snowleopard {gallery of cat folks}  
  • Locked
    Posted on April 12, 2012 at 11:20am

    Not inherently worse off than fiat currency, which we already have. Only “new” issue is that usually governments aren’t the smartest people when it comes to computers… I foresee some hacking issues.

    Report Post »  
  • ColoradoMaverick
    Posted on April 12, 2012 at 11:16am

    Digital money is better than Obama’s “funny money” which isn‘t worth the paper it’s printed on.

    Report Post » ColoradoMaverick  
    • MidWestMom
      Posted on April 12, 2012 at 11:44am

      None of the world’s paper currency is worth the paper its printed on. Digital currency isn’t worth a thing either. I’d rather have paper currency. At least I can burn it to keep warm. Can’t do that with digital money.

      Report Post »  
  • The Jewish Avenger
    Posted on April 12, 2012 at 11:15am

    Obama is coming out with the same thing but he’s calling it the “Chocolate Chip” and this one will be implanted in your head.

    Report Post » The Jewish Avenger  
  • expatinontariocanada
    Posted on April 12, 2012 at 11:15am

    Ya, “I’m from the government and am here to help…!”. Sure. First they come for your money, then your borders disappear. Your money/currency = sovereignty. Can you get any further away from gold/silver-based monetary system than you are with a totally digital system? Nope…

    Report Post » expatinontariocanada  
  • imsteph
    Posted on April 12, 2012 at 11:14am

    yeah-this is a bad idea,,,
    and when the gov financial system gets hacked?

    Report Post » imsteph  
  • IndyGuy
    Posted on April 12, 2012 at 11:09am

    Coming soon…Retina scan that automatically charges your bank account…

    Report Post » IndyGuy  
  • NOBALONEY
    Posted on April 12, 2012 at 10:57am

    First they came for the penny……

    Report Post » NOBALONEY  
    • imsteph
      Posted on April 12, 2012 at 11:15am

      Lol

      Report Post » imsteph  
    • CatB
      Posted on April 12, 2012 at 11:47am

      ;-)

      Sad but true….

      Report Post »  
    • ShyLow
      Posted on April 12, 2012 at 1:34pm

      They came for the pennys , when the government became your parents and decided what you could and couldn’t buy with your pennys…mind your business!!! The first non-king to be described as wealthy , Abraham

      Report Post » ShyLow  
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