1, 2* Selin SEZER and 1, 2 Wolfgang PRINZ
1 Fraunhofer Institute for Applied Information Technology FIT, Schloss Birlinghoven 53757 Sankt Augustin, Germany
2 RWTH Aachen University, Templergraben 55, 52062 Aachen, Germany
1 Tel.: +49 2241 14 3720, E-mail: selin.sezer@fit.fraunhofer.de
Received: 28 June 2023 Accepted: 31 August 2023 Published: 11 September 2023
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Abstract: The ubiquity of blockchain platforms in the last decade has transformed various sectors, including finance, prompting a reevaluation of existing structures and concepts. This paper explores the role of self-sovereign identity (SSI) in a large-scale programmable money ecosystem with embedded spending conditions. Programmable money refers to digital currency with predefined spending conditions, enabling greater control and transparency. SSI, based on decentralized identifiers and verifiable credentials, empowers individuals to manage and control their digital data, enhancing security and privacy. By combining SSI with programmable money, users gain autonomy and efficiency in financial transactions, promoting a more inclusive and user-centric financial ecosystem. This paper examines opportunities and use cases of programmable money, including conditional payments, project budget management, and behavior change incentives. Additionally, it discusses the benefits of SSI in a programmable money ecosystem, such as decentralized identity management, user empowerment, and streamlined spending conditions. The findings highlight the potential of SSI to contribute to a more efficient and user-friendly programmable money ecosystem, bringing about advancements in financial technologies.
Keywords: Blockchain, Programmable money, Conditional payments, Self-sovereign identity, Verifiable credentials
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