Module 2: Digital Wallets

Have you ever wanted to live on a private island? Well—in this course, we’re going to imagine that you’ve been invited to do just such a thing! You are a person who has an interest in finance and technology and have noticed that these two industries have been connected in some very interesting ways. One day, you found an advertisement for a drawing on social media describing a once-in-a-lifetime opportunity to live on a private island and help build its innovative financial system from the ground up! The requirements for the drawing include:

1. an interest in the up-and-coming field of FinTech
2. knowledge of basic statistics, finance, computer programming/software development
3. a willingness to move to an island in the middle of the ocean
4. participate in a social and economic experiment along with two professors of finance.

You are interested in the drawing because you meet the criteria. You enter your name in the drawing and promptly forget about it (you didn’t think you had a chance anyway!).

Fast forward two months—you receive an email in your inbox from the FinTech Island drawing. You tear open the envelope and read the first few lines of the letter quickly before falling backward onto your couch in shock. It is a congratulatory letter saying that you were one of the finalists chosen to join the FinTech Island adventure! You immediately run to your computer to email the contact provided. The two finance professors who sent the letter request that you email them to set-up a time to discuss the opportunity virtually. You now have a lot of things to think about.

A week later you’re ready to meet with the two professors from the drawing. The meeting goes swimmingly and you are very excited about the idea. You weren’t really sure what you would be getting into, but now you are ready to pack your bags. Here is the basic overview they pitch to you about FinTech Island:

• FinTech Island is in international waters
• After the drawing winners arrive, the island will meet the size and population requirements to declare independence and become a de facto state
• The professors want to increase the international legitimacy of the island by building their own innovative financial infrastructure with the input of the island inhabitants (the drawing winners)

You were initially concerned about the living conditions on the island, but you learned several things that helped ease those concerns:

• The island has an electric grid powered by wind and solar energy (from the previous owner)
• The cellular tower on a nearby island allows for cell service for the inhabitants

Some of the interesting things you noted included:

• There are currently no physical banks for similar financial institutions on the island, which means that inhabitants resort to trading communal goods
• One inhabitant, an amateur botanist, has identified several plants with medicinal properties. These plants may be useful for trade off of the island.

As the meeting came to an end, the professors suggest that you try and learn as much as you can about payment technologies in order to start the trip of right. They send you several video resources to watch on the plane in preparation.

After making numerous plans, securing insurance, and contacting many people, you are ready to embark upon your adventure! You arrive at the airport, board the plane, and open your computer to watch the resources the professors sent along. It’s time to start thinking!