GNU Taler Overview¶
links: AC2 TOC GNU Taler - Index
Digital cash, made socially responsible.
Definition¶
Taler is
- a Free/Libre software payment system infrastructure project
- ... with a surrounding software ecosystem
- ... and a company (Taler Systems S.A.) and community that wants to deploy it as widely as possible.
However, Taler is
- not a currency
- not a long-term store of value
- not a network or instance of a system
- not decentralized
- not based on proof-of-work or proof-of-stake
- not a speculative asset / “get-rich-quick scheme”
Design goals¶
GNU Taler must ...
- ... be implemented as free software.
- ... protect the privacy of buyers.
- ... must enable the state to tax income and crack down on illegal business activities.
- ... prevent payment fraud.
- ... only disclose the minimal amount of information necessary.
- ... be usable.
- ... be efficient.
- ... avoid single points of failure.
- ... foster competition.
Vision¶
- Be paid to read advertising, starting with spam
- Give welfare without intermediaries taking huge cuts
- Forster regional trade via regional currencies
- Eliminate corruption by making all income visible
- Stop the mining by making crypto-currencies useless for anything but crime
Regulatory Features for Central Banks¶
- Central bank issues digital coins equivalent to issuing cash
- Architecture with consumer accounts at commercial banks
- Withdrawal limits and denomination expiration
- Income transparency and possibility to set fees
- Revocation protocols and loss limitations
- Privacy by cryptographic design not organisational compliance
CBDC (Central Bank Digital Currency)¶
- Taler replicates physical cash rather than bank deposits
- Taler has unique design principles and regulatory features that align with CBDC requirements
- ECB (Euro) survey has identified privacy as a primary requirement of end users
Online vs. Offline CBDC:
- Online-first
- Limited offline mode (counterparty risk)
- Physical cash for emergencies
Taxability¶
We say Taler is taxable because:
- Merchant’s income is visible from deposits.
- Hash of contract is part of deposit data.
- State can trace income and enforce taxation.
Architecture¶
Taler consists of different components:
- Exchange (Core)
- Merchant
- Wallet
Integrated into our banking system:
links: AC2 TOC GNU Taler - Index