Banking with TDNs
All the bank operations performed with paper money can be performed with TDN. Of course there is no need to have a bank account in order to use TDNs. Banks should convert paper money to TDNs on request for anybody.
TDN deposits and withdraws are instant and do not require a trip to the bank or an ATM when using an app supplied by the bank. The bank ATM will also offer TDN withdraws. The withdrawn TDN may be printer for the customer or it may be scanned into a mobile device with a TDN App. ATM TDN deposits may be performed in the same way.
Interbank transactions are also very simple and fast. For example if a customer wants to transfer money between two different bank accounts the sending bank will withdraw the amount from his/her account as a TDN and send it to the receiving bank who will deposit it in the customer’s account.
Electronic bill payments are performed in the same way. There is no need for clearing the transactions and the customer does not risk to overdrawn the account. His bank will not initiate the transaction in case of insufficient funds.
The bank do not need to have large quantity of paper money on hand and transferring them around if the TDNs get wider acceptance. Requesting TDNs from the Central Bank against the reserve account is instant.
International transaction can be simplified.
The central bank has statistical data for TDN that was impossible to collect for paper money. Also maintaining a TDNSYS is much less expensive than printing and handling paper money.
The TDNSYS specifications are generic and can be used for other purposes. For example a system can be design to implement banking transactions without need of clearing
In this situation the bank takes deposits and issues TDNs. This is totally different then the Central Bank issuing TDNs. The bank may enter into agreements with other banks issuing TDNs and merchants willing to accept bank’s TDNs as payments. The banks will accepts each other’s TDNs requiring a clearing process. In order for these TDNs to get acceptance it is necessary to have only one TDNSYS sued by all the banks and merchants.
