IFSB Capacity Building

on

Blockchain Based Digital Payment System

Presented By

Mr. Abdullah Han Guangyu

Co-Founder & Managing Director

HLC Foundation

www. qitmmer.io

https://github.com/qitmeer

CONTENTS

PART ONE

Overview of the Project

PART TWO

Q Payment Solution

PART THREE

Business Development

LOGOOverview of the ProjectONE

This project is partnership with Central Bank of Nigeria in order to

provide Qitmeer payment system Solutions to build a

decentralized, cost-efficient, approximate real-time, inter bank

and cross boarder payment platform to connect rural banks to

each other and to national commercial banks, using Qitmeer

network payment system based on BlockDAG.

This effectively brings rural banks into the domestic financial

system and increases access to the communities in which they

operate.

LOGO

Q Payment Solution Objectives

The Q payment platform is aiming to service millions of previously unbanked Nigerians with this Q payment

solution as the first financial inclusion in the Africa region.

This project is a blockchain based solution to the Nigerian payments system. However, it will operate as the

country’s first Qitmeer Blockchain based payment network for cross boarder payment, settlement, domestic

remittances, and Tokenization of Naira.

LOGO

BANK B

BANK C

BANK D

Central Bank

A B C D

-50 70 -80 120

BANK A

Settlement

Mechanism

Clearing

Mechanism

Current Traditional Payment System

1 High Cost of Operations, Branches, ATMs, etc.

2 Complex Clearance and Settlement System

3 Cross Boarder Payment Transfer Slow

4 Lack of AML/KYC Traceability Solution

ONE

Key Issues:

Ledger

Business

Central

Bank

Commercial

Bank A

Users

Traders

Mechants

Commercial

Bank B

Ledger

Ledger

Ledger

Ledger

PoW and UTXO model with collaboration model

enables a secured, traceable and scalable ledger

for all banks.

Disruptive Clearance and Settlement System

KYC/AML Management and Traceability

Fast Local and Cross Boarder Payment Settlement

Cyber Resilience and Secured System

Up to almost Visa transaction per second enables the

high speed of transactions inter countries or cross

boarders

Cash settlements are hard to trace, however all token

transactions histories are recorded in the blockchain

Same secured level as Bitcoin which has been

proved for more than 10 years guaranteed by

consensus and algorithms

Blockchain-based Q Payment SolutionONE

Comparison between Traditional Payment and Q PaymentONE

Index Traditional Payment Q Payment

Clearance and Settlement

Local Transfer

Cross Border Payment

Remittance

Peer to Peer

Transaction Per Second (TPS)

NA As fast as VISA

Transparency

Comparison between Traditional Payment and Q PaymentONE

LOGO

Improve Cost-efficiency 02

Overcome the Limitations of

Existing Systems03

Reduce Operational Risks

and Running Cost04

Improve Speed of

Transaction Settlements01

Permit the recording of transactions of

any asset05

Q Payment Solution Benefits to Central Banks

It cuts operational costs which banks are

targeting and reach the customers at the

edge of wireless and not just bank

accounts.

Improve Payment System

Ability to 24 *7 Operation06

money, equities, bonds, over-the counter

derivatives- as well as cash, allowing

multiple simultaneous changes to the ledger

ONE

– The system is resilient and can

cope with cyber attacks

Transaction settlement, especially for

cross boarder payment settlement can be

done in seconds

It will increase efficiency and reduce

reconciliation costs in securities

clearing and settlement

It doesn't need the central

operator to be online

LOGO

Tracking Payments

Tracking where and when VAT

has been paid, and in doing so

reduce VAT fraud

Consistent Data Set

Helping multinational companies

provide a consistent data set for

multiple tax authorities

Data Supply

Giving tax authorities and other

regulators more confidence in

the data supplied to them

Verifying in Jurisdictions

Verifying judgements and assumptions

involved in establishing the profit global

businesses make in different jurisdictions

More Visibility

Giving more visibility to micro

transactions such as those done

by individuals as part of the

sharing economy

Q Payment Solution Benefits for Tax CollectionONE

LOGO

Rapid Local and Cross-boarder Payment

Facilitate Trade Finance

Easy Registration for an Account

Lower Cost of Transactions

Q Payment Solution Benefits to Users and ConsumersONE

Transfer money at any time without

operation time limitationNo Need to always bring cash

TWO Overview of Qitmeer Network

Cutting Edge Public Chain

Based on Block DAG

Act as the Guardian for the Core

Financial Ethical Values

Ecosystem Focuses on Ethical

Finance and Financial Inclusion

Qitmeer is the first public chain that is dedicated to serving the

ecosystem of ethical finance, socially responsible investment and Islamic

Finance, which aims to act as the overall financial infrastructure to

seamlessly converge all these areas, thereby enhancing financial

inclusion.

Qitmeer is a new generation-public chain based on Block DAG which

adopts a collaboration model in the mining over the traditional

competitive model, thereby achieving a desirable balance of typical

blockchain metrics, such as the security, openness, fairness and

scalability.

Reserving Base Currency For

Asset TokenizationSecurity Openness Fairness Scalability

LOGOTWO Technology Overview

BlockDAG

Token/Asset/Liquidity

Payment

WASM

J.P. Morgan Quorum™

Token

Layer-2: off-chain Payment+

Layer-1: native Payment

BLOT compatibleVM compatible

Layer 1 (native) + Layer 2 Cross-chain

Atomic-swap

eWASM

ILP compatibleFiat Currency

LOGO

Consensus: Pow + BlockDAG

OP_TOKEN asset issuance

mechanism

Assets backed up by base

currency

Interoperation with all the

mainstream blockchain network

CONSENSUS

Cross-chainUTXOBLOCKDAG

DATA STRUCTURE

PoW Spectre GhostDAG Inclusive

TWO Technical Underlying Structure

LOGOTechnology HighlightsTWO

Assets Authentication MeasureRequire an ecosystem endorsementfor anchors to issue asset.

InclusionMultiple cross-chain protocolsto integrate various use cases.

SecurityNearly Real Time Instant Confirmation.

Highly scalable throughput secures mainstream adoption.

ScalabilityFast confirmation to seconds order,

high throughput to thousands order.

Intrinsic Value Guarantee Tokens are reserved by native currency,

which is mined by Proof-of-work.

FairnessFair Mining model based on cooperation

LOGOTWO Digital Asset Wallet for E- Naira

As a professional digital asset wallet, it has unique competitive advantages that a set of

mnemonic words can create a multi-chain wallet, making it easy to backup; Users can

hold their private keys and complete smart contract matching without trusting a third

party, which is efficient and transparent. It supports cross-chain transactions of various

public chains, and it enables users to experience the advantages of Qitmeer public

chain in terms of security and fast transactions.

The KYC registration will be the first step for users to have their digital wallet account

where all data will be uploaded to central bank private data system for verifications and

tracking with daily limitation of transaction controlled according to central bank rules.

KYC Registration Ultimate security Fast Payment Settlement Diverse DApps

https://app.kahf.io/ https://testflight.apple.com/join/gAyuTI6AAndroid: Iphone:

LOGODigital Currency ExchangeTWO

Easy to Use, Easy to Access, Advanced Trading Functionalities, KYC/AML Available

Digital currency exchange is a peer-to-peer Exchange run by code. It usually exists as an application

(DApp). It is a place where people can trade digital currencies directly without a middleman

LOGODigital Payment System Model

Tokenization of Naira is best viewed as a form

of infrastructure or foundational layer for

digital currency that will generate immense

value for the digital asset's ecosystem

E- Naira could help create a tipping point for

much broader digital currency adoption by

successfully addressing concerns around

volatility, the tokenized Naira payments

system could be designed to flow as easy as

sending messages without compromising

regulations control, monetary policy, personal

privacy, and increase the influence of Naira

globally.

Digital Currency

Backed by Equivalent Amount of Fiat Currency

Fiat Deposits

Central Entity

Issuer/Wallet/Custodian

Issuance of Fiat- Backed Digital Currency

Merchants Digital Currency Exchanges

Trading of fiat-backed digital currency

THREE

LOGOCentral Bank Digital Currency (CBDC) Design PrinciplesTHREE

LOGO

1The CBDC is a form of central bank money that is at par

with other forms of central bank money, such as cash and

reserves

2

3

4

5

6

7

The CBDC is token based, while the reserve is account

based

It has a separate operational architecture from other

forms of central bank money, allowing the CBDC to

serve an entirely different core purpose

The CBDC may be interest-bearing and, under

reasonable assumptions, may pay a different interest

than the reserve

Compared with central bank reserves, the CBDC allows a

wider range of subjects to access (the former is

accessible only to commercial Banks, some payment

institutions and foreign central Banks, etc., while the latter

is designed to allow access to commercial Banks, non-

bank financial institutions, households and companies).

In addition to supporting retail payments, CBDC supports

cross-border payments. In contrast, cash is mainly a retail

payment instrument and reserves are mainly used for

interbank clearing

The CBDC's issuance mechanism could be different from

cash and reserves, for example by supporting different

collateral and allowing a wider range of subjects to

participate in CBDC issuance

Central Bank Digital Currency (CBDC) CharacteristicsTHREE

LOGO

Central BankAccounting System

Central BankDigital Currency System

Commercial BankDigital Currency System

Apply for E-Naira

Bank Repository receives E-Naira

Examination and Approval

Initiate the DepositReserve deduction

Examination and Approval

The deposit reserve is deducted to the issuing fund

E- Naira Issuing ProceduresTHREE

LOGOCBDC Economic ModelTHREE

LOGOExchange Transaction Types and Operation FlowsTHREE

Selling/buying deposits to/from other

private sector counterparties in

exchange for central bank eligible

collateral (e.g. government bonds)

Sell/buy CBDCS to/from

households and firms in exchange

for bank deposits

Sell/buy bonds to/from the central

bank in exchange for the CBDC

01

02

03

Enter into repurchase agreements

with the central bank to borrow/return

the CBDC

03

LOGO

E- Naira issued on the second Layer of Qitmeer Network pegged to Naira Currency

E- Naira Issuance by Qitmeer

Qitmeer underlying infrastructure as the ledger of Nigeria central bank for a fast and secured clearance

Underly Infrastructure for Bank Clearance

The third layer applications to operate the daily transactions of Naira and E- Naira settlements

Applications for Payment Solutions

01

02

03

QITMEER NETWORK

E- Naira

APPs

1

2

3

Financial Inclusion Case

Q Payment System For Central Bank Of Nigeria (CBN)THREE

LOGOTHREE Project Core Team Members

Prof. Abdussalam I. Onagun

Co-founder, is an acknowledged industry expert in the philosophy of blockchain technology within the Islamic Economy

Abdullah Han

Co-founder, has more than ten years extensive experience of marketing strategy, e-business strategy, and technology management across Africa, Middle East, Southeast Asia, and North America.

Prof. Datuk Rifaat

Advisor, a world-renowned leader and authority in the Islamic financial services industry (IFSI) both at the professional and academic level.

Dr. Omar Fisher

Advisor, Serial entrepreneur in Islamic financial services, thought-leader in Takaful-Islamic Insurance

Kokila AlaghLawyer, has 15 years of experience as a corporate, commercial, media and tech lawyer in UAE

Advisor, PhD degree of Tsinghua University.

Independent researcher on blockchain

technology, monetary and financial theory, and

Central bank digital currency of China.

Dr. Baitao Long

LOGOTHREE Project Core Team Members

Sam

Cross Chain team leader, 12 years experience, good at JS, participated in LVT, NatureToken etc. projects development

Mining Algorithm leader, was the R&D Director of Haier Financial Holdings, 16 years developing experience

E-wallet Project Manager, was the R&D Director of Newegg China, 15-year developing experience, expert in Front & back end development

Eric LoganTony

DAG Researcher, 11 years software developing experience, DAGFansfounder, Master of AUS in computer Science

Qitmeer News and SpeechesTHREE

HLC Foundation Joined Islamic Financial Services Board (IFSB) As Observer Member

Meeting with His Eminence Sultan of Sokoto, Nigeria

Meeting the chairman of JaizBank H.E. Alhaji Dr. Umaru Abdul Mutallab

Meeting with His Excellency Sokoto State Governor

IsDB 44th annual meeting in Marrakech, Abdullah Han was invited as a speaker on Blockchain and Islamic Finance

HLC Public Chain – Qitmeer Open Source Launch Event

Securities Commission Malaysia World Bank conference 2019, Abdullah as speaker

Meeting with H.R.H Prince Talal Bin Badr Bin Abdulaziz Al Saud

World's leading Islamic finance news Dubai Airport Free Zone Authority IFN FINTECH

Qitmeer Media CoverageTHREE

CNBC Interview

LOGOStrategic Corporation With Global Financial InstitutionsTHREE

LOGO

www.hlc.com

+971 4 321 2643

www.qitmeer.io

THANK YOU

LOGO

Reserve Fund

Cash

CBDC

CBDC CBDC

CBDC

CBDC

CBDCCBDC

CBDC

CBDC

CBDC

Exchange

Central BankCommercial

BankHouseholds

& Firms

Bank Loan

Bank Deposit

Bank

Loan

Bank

Deposit

Bank

Deposit

Bank Deposit

Non-bank

Financial

Institutions

Households and businesses use

financial services provided by non-

bank financial institutions

LOGO

CBDC ExchangeCentral Bank

Commercial

Bank

Households

& Firms

Non-bank

Financial

Institutions

CBDC

Debts

CBDC

Expenses

Bank Deposit

Purchase bonds

by CBDC

Exchange

Deposit

The exchange

maintains a float

of CBDC, bonds

and deposits