GNU releases first version of payment method Taler

The French National Institute of Computer Science and Mathematics Inria has released version 0.0.0 of GNU Taler. The system should provide a free electronic payment system where anonymity is guaranteed for customers, but not for merchants.

The Taler system “basically” works with any existing currency, from euros to dollars and possibly other cryptocurrencies, although there is currently no integration with “real” banks or other cryptocurrencies, GNU Taler writes on gnu.org. One of the goals of the system is to make it possible to gain transparency for governments so that tax can be levied on cryptocurrency income.

Taler is not a new digital currency, but only intended as an exchange exchange. An end user, or “citizen” on the Taler site, uses the Taler digital wallet or “wallet” as a holder of Euros or other currencies exchanged through a Taler exchange. Any instability of a currency therefore depends on the actual currency. The advantage for the citizen is that the transaction with the merchant or retailer is private and that no private information is exchanged, such as a credit card number or bank account.

Another benefit for both customer and merchant is that the transaction is visibly recorded in a contract, capturing a ‘cryptographic proof of payment’ along with cryptographically signed confirmations from the Taler exchange. Because a merchant never gets sensitive customer information when it comes to payments, there’s no need for a merchant to go through “tough security audits and procedures” because a cryptographically signed contract is available in the event of a lawsuit.

It is easy for governments to tax companies because the information is available. There would also be ‘some extra information’ in a transaction, so that individuals could also be assessed, and yet anonymity would be guaranteed. For example, a government cannot see what good a citizen has bought.

At the moment the project is still in its early stages. Four important parts function, namely the possibilities to run a bank, an exchange, a seller and a wallet, although there is no possibility to link a coin yet. Much does not yet work or does not work well; for example, it is occasionally possible to trace transactions back to a buyer and there is not yet an external ‘auditor’ such as a government-appointed body to check the databases. The latter must be there because without an auditor, funds can possibly be misappropriated.

Inria and GNU Taler hope to show a working system to the public this year.

Taler as seen by: Developer/Government, Customer, Merchant, Exchange