Asymmetric Currency Rounding
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.
Unable to display preview. Download preview PDF.
- 2.M. Blum, Coin flipping by telephone: a protocol for solving impossible problems, 24-th IEEE Spring computer conference, IEEE Press, pp. 133–137, 1982.Google Scholar
- 3.DGII/D1 (EC), Note II/717/97-EN-Final, The introduction of the euro and the rounding of currency amounts, 1997.Google Scholar
- 5.D. Wheeler, Transactions Using Bets, Security protocols workshop 1996, Lecure Notes in Computer Science no. 1189, Springer-Verlag, 1997.Google Scholar