T-Cash: Transferable Fiat Backed Coins

TL;DR

This paper introduces T-Cash, a blockchain-based electronic cash scheme that enables continuous transfer and reuse of coins, aiming to combine the privacy of digital cash with the transferability of fiat currency.

Contribution

The paper presents a novel transferable electronic cash scheme leveraging blockchain technology, addressing the lack of continuous spendability in previous digital cash systems.

Findings

Enables continuous reuse of digital coins within the system

Uses blockchain for secure and transparent transactions

Bridges the gap between digital cash privacy and transferability

Abstract

Numerous electronic cash schemes have been proposed over the years - however none have been embraced by financial institutions as an alternative to fiat currency. David Chaum's ecash scheme was the closest to something that mimicked a modern day currency system, with the important property that it provided anonymity for users when purchasing coins from a bank, and subsequently spending them at a merchant premises. However it lacked a crucial element present in current fiat-based systems - the ability to continuously spend or transfer coins. Bitcoin reignited the interest in cryptocurrencies in the last decade but is now seen as more of an asset store as opposed to a financial instrument. One interesting thing that has come out of the Bitcoin system is blockchains and the associated distributed consensus protocols. In this paper we propose a transferable electronic cash scheme using blockchain technology which allows users to continuously reuse coins within the system.