Interview With Adriaan Brink Chief Exectutive Officer of iCoins
Mark Herpel
May 02, 2008
(Q) What is or what are iCoins?
iCoins is a system designed to provide a link between disparate wallet systems in much the same way that SWIFT/IBAN provides for conventional banking, but with real-time funds transmission (from the consumer´s point of view). The goal is to break down barriers between the many competing services, and provide an easy way for new wallets or accounts within merchants to integrate with others. The system is modeled on a digital representation of cash.
(Q) What is an iCoins Wallet and what can it do?
There is no such thing. There is an iCoins enabled wallet – that would be your account at Paypal (for example) integrated with iCoins.
(Q) What does this mean (from your web site) "iCoins provides a global addressing system whereby all these diverse eWallets can be associated with the an iCoins Wallet Address (much like an IBAN number in the banking system) and then transfer funds between their wallets." I have PayPal, Moneybookers and e-gold accounts...how can they all be used with iCoins?
If we were integrated with all 3 of those entities then your account at each entity would be assigned an iCoins Account Number. This is a globally unique number, but each eWallet or Account Server cannot tell where the remote account is. So you could then issue an instruction through your interface within Paypal to send money to (say) account 1234567890123456 which is your iCoins Account Number at Moneybookers. The funds would flow instantly between the two at no cost to you and Paypal would not know that they had gone to Moneybookers (and vice versa).
(Q) How did you come to end up as iCoins CEO?
I invented the concept and put it together.
(Q) What is your business background?
I have been writing computer software for 25 years. During this time I have written software and launched companies for Charity Lotteries (International Lottery in Liechtenstein Foundation), Payments (Earthport PLC) and recruitment (Peoplebank).
(Q) With a DGC system like e-gold, all accounts are the same and there is no distinction between a merchant or customer account. When describing iCoins, are there separate and distinct ´customer´ and ´merchant´ accounts that act differently depending on the transaction?
No – in that respect it is similar to DGC system.
(Q) Is iCoins 100% anonymous for the user?
Yes.
(Q) When funding iCoins, do I send money directly to iCoins?
No – you deal through Account Servers and they deal with Treasuries.
(Q) Compare and contrast your payment system with all others now out there such as PayPal, Webmoney and e-gold...why should I be using iCoins instead of these other popular systems? What´s the big iCoins advantage here that all my readers should know about?
Most payment systems set out to be the "biggest wallet around". We are not a wallet, in fact our intention is never to operate a wallet (although Coinjars is a wallet in a sense). Our intention is to integrate with as many disparate payment systems/wallets as possible and provide the glue between them – all secured and underwritten by a strong Treasury network.
(Q) Comparing iCoins to a PayPal type merchant transaction, which is cheaper? Is iCoins a better deal?
Yes – as long as the coins stay digital transfers are free of charge.
(Q) What characteristics do iCoins and regular cash dollars share?
They move instantly, are only ever owned by a single person at an instance in time and there is no cost associated with them changing hands. Transfers are anonymous (from the consumer´s perspective).
(Q) Where do iCoins and cash differ?
iCoins provides a full audit trail for AML purposes, but only where required by an authority investigating a crime in the jurisdiction of the Treasury.
(Q) You have a popular application on Facebook named CoinJars, what does that allow Facebook users to do?
It provides a mechanism for the free movement of funds down to as little as 1c (US) between users and to merchants.
(Q) Do you have any specific target markets for your products such as online gambling or un-banked Net users without a credit card?
Clearly this is of more use to users where a conventional credit card system does not work well. We are integrating at the moment with some great non-credit card systems such as direct to bank. Our target markets are Social Networks (we are on Facebook with Coinjars and will launch on Bebo very soon, hopefully MySpace not long after that).
(Q) Is there a mobile iCoins application?
Not at this stage.
(Q) If I had a web site selling retail merchandise online, can I accept iCoins?
Yes.
(Q) Do you offer an API?
iCoins offers an API to all Account Servers. I also anticipate that some Account Servers will offer their own APIs for merchants (Coinjars will have some for Social networks soon).
(Q) If I am shopping online and buy something with e-gold and it never gets delivered (I get scammed), there is nothing I can do to chargeback or reverse that purchase. If I am shopping online with iCoins and get scammed can I reverse the transaction? Is it like a PayPal transaction where I can complain and the funds get pulled back from the merchant account?
iCoins Transfers can be reversed, but this does not imply an automatic reversal by the originating Account to the form of payment.
(Q) Your iCoins tagline is, "Currency of the Internet" is the online payment system considered a ´currency´ by local regulations? As an example, in an area such as the UK, is iCoins registered with the FSA and an emoney issuer? Would a UK Treasury in London, need to register?
Treasuries are licensed in the jurisdiction where they operate. Certainly a Treasury in London would need to comply with FSA regs.
(Q) If I have cash, is there currently any way for me to fund my iCoins account?
Very soon there will be.
(Q) Are you partnered with Ukash, cashU, paysafecard or anyone else yet?
Hope to soon.
(Q) Could a Treasury separately partner with any of these services?
Absolutely – that is how it would happen.
(Q) Can I integrate iCoins into my existing shopping cart as another payment method?
Not directly.
(Q) Can I use iCoins to sell digital content like software downloads?
Yes – but probably through an eWallet or Account server (unless the merchant has its own accounts system in which case it can integrate directly)
(Q) How does any iCoins user know their funds are safe?
Account servers (servers that interact with the user and are integrated with iCoins) provide a link that invokes a page from the Treasury confirming the validity of the iCoin.
(Q) Is each iCoin different from one another and is each coin unique?
Yes – a coin is always unique, can be any amount in any currency and is ever only owned by a single party. When a coin is transferred the original is destroyed and a new one owned by the new owner created.
(Q) When an iCoin is used is it destroyed? An example of this question would be...if I have $100 iCoin in my iCoin Wallet and receive from another user a $50 iCoin, do I then have two iCoins in my wallet or are those two destroyed in favor of a newly issued $150 iCoin?
They are both destroyed and a new one for $150 is created.
(Q) Is there any case where that original $100 and $50 iCoin would be used again? Can these codes ever be recycled?
No.
(Q) Are there any restrictions on whom I can send my iCoins to? Are there any limits on how much I can transact?
Not restrictions. There are limits depending on the level of the Account.
(Q) Would iCoins work in an online casino? Is gambling permitted?
That is a matter for the Treasuries. Gambling is not illegal in much of the world. At this stage the Isle of Man Treasury has elected not to integrate with gambling businesses.
TREASURIES
(Q) What is an iCoin Treasury and is there more than one?
A Treasury is an organization that securitizes and guarantees the value of coins on issue. There can be any number of treasuries, although I don´t anticipate the number growing to more than a few hundred. Treasuries are integrated within the system only having satisfied us that they are properly licensed and controlled. There are currently two treasuries.
(Q) I read, "...iCoins are only available through its eWallet partners." is a Treasury the same thing as an eWallet partner?
No – an eWallet partner is a customer of a Treasury.
(Q) What is the incentive for a Treasury to operate....how do they make money?
The make money from the difference between the Redemption Fee (8.8%) and the Creation Rebate (7.2%). They also earn on the interest and from dormant/lost coins.
(Q) Are there capital requirements to start and operate an iCoins Treasury?
Yes.
(Q) Where are the servers located?
That depends on the Treasury. We maintain servers on behalf of the Treasuries in the jurisdiction of their choice. Treasuries are licensed organizations (where appropriate) that manage the assets behind the digital cash.
(Q) Are the ´Treasuries´ operated separated and independently from iCoins.com ? Are they separate businesses and or separate companies?
Yes – they are independent entities although we are very careful who we license.
(Q) Can I start my own iCoins Treasury tomorrow in whatever jurisdiction I like?
If you have the requisite credentials.
(Q) If I started a Treasury in Panama, and my office and all my business developed and filtered through Panama, would I have to abide by US rules?
That would be a question for a lawyer in Panama. So far as we are concerned, as long as you are abiding by Panama law and not contravening the system wide restrictions there would be no issue.
(Q) So my new iCoins Treasury would have to comply with eMoney regulations in the jurisdiction where it is incorporated and or operated?
Yes.
(Q) How many iCoins Treasuries are then today and where are they located?
Two – one in the Isle of Man and one in Singapore.
Example: An agent accepts an incoming $1000 bank wire transfer into their exchange bank account, and then transfers in e-gold digital currency $950 directly to that client´s e-gold account. Keeping a small fee $50 (or large) for his risk and work.
(Q) Is this the same type of operation of an iCoins Treasury?
That is the job of an Account Server (a customer of a treasury). The Treasury runs the systems and settlement between other Treasuries and also with all it´s Accounts.
(Q) Do you allow any high yielding investment web sites (HYIP Ponzi schemes) to use your product? Why or why not?
Not at this stage, although we have not been approached by any yet. As long as an activity is legal it would be considered, but the eventual decision on whether or not to do business with any entity is for the Treasury. As long as they don´t contravene the central list that all Treasuries agree to then each Treasury is independent and free to take its own decisions on who it does business with.
(Q) I have a new product out now, which cures all forms of cancer with just two months of taking the pill....can I accept iCoins to sell this product on my new big money web site?
Sounds great! You would have to go through due diligence with a Treasury and they would make the decision.
(Q) Would you like to see more of these iCoins partners [treasuries]?
No doubt they will come. I anticipate that some of the larger eWallets (such as Paypal) would want to run their own treasury. We would not have an issue with that.
(Q) Is is possible for me to swap e-gold for iCoins or vis versa?
Not at this time.
(Q) That sounds like a pretty good online business, would you allow that type of exchange business?
I don´t see why not, but that would be up to the Treasury.
(Q) Do you classify your company as a online payment system?
In a way, although not the same as Paypal.
(Q) Who is Walmint (www.walmint.com/) ?
Walmint is an eWallet that is one of our early adopters. It is a customer of Mintflow (the Isle of Man Treasury).
(Q) Is there any big news on the horizon for iCoins such as additional products ready to roll out? What´s next for iCoins?
More integration. We will bring local banking in a huge array of countries complete with near-instant purchases from countries where this is possible (Netherlands, Poland, Australia amongst others).
I´d like to thank Adriaan for taking time to answer my questions.
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