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Asymmetric Currency Rounding

  • David M’Raïhi
  • David Naccache
  • Michael Tunstall
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 1962)

Abstract

The euro was introduced on the first of January 1999 as a common currency in fourteen European nations. EC regulations are fundamentally different from usual banking practices for they forbid fees when converting national currencies to euros (fees would otherwise deter users from adopting the euro); this creates a unique fraud context where money can be made by taking advantage of the EC’s official rounding rules. This paper proposes a public-key-based protection against such attacks. In our scheme, the parties conducting a transaction can not predict whether the rounding will cause loss or gain while the expected statistical difference between an amount and its euro-equivalent decreases exponentially as the number of transactions increases.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2001

Authors and Affiliations

  • David M’Raïhi
    • 1
  • David Naccache
    • 2
  • Michael Tunstall
    • 3
  1. 1.GemplusRedwood CityUSA
  2. 2.GemplusIssy-lcs-MoulincauxFrance
  3. 3.GemplusGcmenosFrance

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