IT To Root-Out Counterfeit Currency

(Credit Card ToCombat Counterfeit Currency)

This document initially prompted by the news report of RBI decision to withdraw the currency notes of the year 1996 and 2000 to curtail the circulation of counterfeit currencies, reported in the media 28th August 2008.

Counterfeit currencies are the nightmares of common people. It is very difficult for people to commonly distinguish (in a non-embarrassing normal glance) the fake from the genuine notes even for the professionals. It is a major headache for the Governments, sabotaging the economy and pose a serious threat to the national security. The menace of the fake currencies increase as the advancement of printing technology made widely available.

Prevention of counterfeit currencies in circulation is the Governments main responsibility. However by the time the law enforcement catch the culprits most of the fake notes already out in the circulation! Not to mention the main culprits never been caught as the counterfeit rackets many times run by big criminal gangs, powerful mafia’s. Even Governments sponsoring terrorism said to be involved to finance the terrorism and destabilize the other countries.

In our technologically advancing world today the Governments tries hard to prevent the menace of counterfeit currencies by brining in more and more sophisticated currency papers, printing designs also by allocating more financial resources in the counterfeit currency detection and law enforcement catching the culprits. However the menace still continues more or less as it did before!

What is needed in my view is to bring in an entirely new kind of innovative trading technological (IT) approach that would make the existence of the counterfeit money in the economy virtually impossible! -- You believe it or not, this new kind of innovative technology IT solution already exists and very much in practice in our business trading! What is really needed is the Government needs to have the Political Will to implement it more and more widely in the business trade by making it obligatory!

Let me explain the above mentioned IT solution to root-out counterfeit currencies briefly. Most of us today know about doing trade, business, money exchange by the use of “Credit Card”. In which the money transaction between the two parties made directly through their bank to bank accounts by the aid of Electronic (credit card) money transfer. This completely takes away the need of exchange of the paper notes between the two trading party so any involvement or existence of the counterfeit currencies in this money transaction!

In our business world today this Electronic or E-money (credit card) transaction very much in practice what is needed is the government to promote it by encouraging people to trade through the credit card instead of the cash currency especially when it comes to the big amount than make such trade obligatory. I name it as the Mandatory Electronic Money Transaction (MEMT) in my paper document titled: “IT To Root-Out Corruption”. (Search the title in the web.)

The MEMT in the trade or business can root-out most of the economic crimes, corruption prevailing in our world. The major among them of tax evasion (fraud), bribery, money embezzlement etc. Elimination of counterfeit currency is just one among the many economic crime that it can most easily accomplish. However the main point in this is it can accomplish this task in its given area with total success that conventional counterfeit prevention measures could never achieve.

Valerian Texeira
St. Joseph Nagar, Jeppu
Mangalore – 575002 INDIA