Is decp decentralized
Publish: 2021-03-31 06:58:45
1. On the issue of issuing their own digital currency, central banks are always less thunderous. Central banks around the world are considering issuing their own digital currencies to compete with cryptocurrencies such as bitcoin, but they have been unable to do so for a long time
the media's attention to the central bank's digital currency has increased significantly, especially after Zuckerberg testified in Congress on the Libra issue and Christina Lagarde acknowledged the "clear demand" for stable currency at her first media reception as president of the European Central Bank, which seems to have changed the public's view on this matter, Let many people in cryptocurrency community think that cbdcs is in sight<
according to the latest survey report released by the bank for International Settlements, central banks in the past seven years have been investigating this technology and assessing its impact. Of the 63 central banks surveyed, 55 said they were unlikely to issue cbdcs in the next three years, and only one reported that they were "highly likely to issue large-scale cbdcs in the next three to six years."
although the proportion of central banks studying cbdcs is very high, the crux of the problem is that it is mainly theoretical and investigative work. Only five central banks have concted more in-depth research and real project development or experimentation - but that still does not mean that they will necessarily issue cbdcs
through close observation, it is more and more obvious that both Libra recently released by Facebook and the new stable currency assets have had a significant impact on the central bank. Today's situation took hundreds of years to form, but it changed in a few months; Competition, the most terrifying and unfamiliar concept that has never been thought of before and penetrated into the elite society of central banks, is now knocking at the door
it can be said that the solution to the current situation is still unclear. Some people who are familiar with these things even say that they are bluffing. However, in Lagarde's own words, the slow and wait-and-see regulatory approach can no longer meet the needs
1. What is central bank digital currency<
what is the difference between central bank digital currency CBDC and other digital currencies
CBDC is a new form of currency, which is directly issued by the central bank in digital form as legal tender. The current form of legal currency is cash, reserve deposit or balance settlement< There are two main differences between CBDC and other digital currencies (including cryptocurrency and other forms of central bank currency):
1. CBDC has nothing to do with cryptoassets. They're not decentralized, they don't have to be blockchain based, and they're certainly not anonymous, they're not unlicensed, they're not censored< 2. Contrary to the current digital cash, the operation structure of CBDC will be different from other forms of central bank currency. CBDC has more powerful functions. They are programmable, can generate interest, can be cleared in near real time, and have cheaper handling charges and wider openness
when designing CBDC, the speed of central banks is different. Different central banks adopt their own approach. However, in general, there are three problems being explored: whether CBDC should be based on token or account number, whether CBDC should be batch (only open to banks) or retail (open to the public), and whether it should be based on DLT
when CBDC is to be implemented, things will become complicated, and there are many thorny problems to be considered
for example, once CBDC is launched, does it need to cancel cash? Should CBDC carry interest? Should they have face value like cash? Or linked to the total price index? What impact will this have on commercial banks? What about anonymity and privacy? All these questions need to be answered<
2. Motivation for issuing CBDC
in the 2017 staff discussion paper, the Bank of Canada gave six reasons for issuing CBDC in an article entitled "central bank digital currency: motivation and impact":
1. Ensure that the central bank provides sufficient cash to the public, and maintain the seigniorage revenue of the central bank
2, Support non-traditional monetary policy
3. Rece overall risk and improve financial stability
4. Improve payment competitiveness
5. Promote financial inclusiveness
6. Curb criminal activities
looking back at the bank for International Settlements survey we analyzed earlier, payment security and domestic efficiency are selected as the most important motives of the central bank. According to a large number of papers published by the central bank and other large financial institutions, for developed countries, the transformation into a cashless society is the main driving factor, while for developing countries, financial inclusiveness, cost rection and operational efficiency are the main motivation
throughout the rest of the reports and the literature that can be found, the fierce competition brought about by bitcoin and other innovations in the cryptocurrency instry, as well as the clear need for "one step ahead", of course, are not listed as the reasons for issuing CBDC< The advantages and potential risks of CBDC are very low.
if the central bank starts to launch CBDC and succeeds in the end, there are many potential benefits
from a technical point of view, CBDC is much better than the current form of legal currency. They can be tracked better, collect taxes more conveniently, transmit monetary policy better, have better financial inclusiveness, and rece the cost of procing physical currency
the most obvious advantage is that payment is cheaper and faster, whether it is domestic payment or cross-border payment
in addition to the design and implementation problems, a key problem of issuing CBDC is that CBDC may increase the risk of bank operation. However, this only happens when banks promise that their deposits can be converted into CBDC on demand, which is not necessarily the case, according to the Bank of England document
4. Facts on the ground
how far is it from us to see a real CBDC appear in the market? It's hard to estimate, but at present, we can sum up the current situation in one sentence: all talk but no practice
if we put aside the failed digital currencies of Ecuador, Tunisia and Venezuela, we can only do theoretical research, a small amount of experiments, and issue some feasible CBDC issuance announcements supported by the state in the future
the most famous CBDC projects in progress are: e-peso in Uruguay (the project was successfully tested in 2018), DCEP in China, "project Inthanon" in Thailand, e-krona in Sweden (still in the research stage)...
5. The revolution has not yet been successful, and comrades still need to work hard
considering the factors mentioned above, Most of the headlines about CBDC's upcoming release are groundless. All projects scheled to be released this year have been delayed
in fact, there is still a long way to go for the birth of CBDC, and to convince the public, we need more than a statement. Given the current situation, it seems that CBDC and other cryptocurrencies may not affect each other - at least for now.
the media's attention to the central bank's digital currency has increased significantly, especially after Zuckerberg testified in Congress on the Libra issue and Christina Lagarde acknowledged the "clear demand" for stable currency at her first media reception as president of the European Central Bank, which seems to have changed the public's view on this matter, Let many people in cryptocurrency community think that cbdcs is in sight<
according to the latest survey report released by the bank for International Settlements, central banks in the past seven years have been investigating this technology and assessing its impact. Of the 63 central banks surveyed, 55 said they were unlikely to issue cbdcs in the next three years, and only one reported that they were "highly likely to issue large-scale cbdcs in the next three to six years."
although the proportion of central banks studying cbdcs is very high, the crux of the problem is that it is mainly theoretical and investigative work. Only five central banks have concted more in-depth research and real project development or experimentation - but that still does not mean that they will necessarily issue cbdcs
through close observation, it is more and more obvious that both Libra recently released by Facebook and the new stable currency assets have had a significant impact on the central bank. Today's situation took hundreds of years to form, but it changed in a few months; Competition, the most terrifying and unfamiliar concept that has never been thought of before and penetrated into the elite society of central banks, is now knocking at the door
it can be said that the solution to the current situation is still unclear. Some people who are familiar with these things even say that they are bluffing. However, in Lagarde's own words, the slow and wait-and-see regulatory approach can no longer meet the needs
1. What is central bank digital currency<
what is the difference between central bank digital currency CBDC and other digital currencies
CBDC is a new form of currency, which is directly issued by the central bank in digital form as legal tender. The current form of legal currency is cash, reserve deposit or balance settlement< There are two main differences between CBDC and other digital currencies (including cryptocurrency and other forms of central bank currency):
1. CBDC has nothing to do with cryptoassets. They're not decentralized, they don't have to be blockchain based, and they're certainly not anonymous, they're not unlicensed, they're not censored< 2. Contrary to the current digital cash, the operation structure of CBDC will be different from other forms of central bank currency. CBDC has more powerful functions. They are programmable, can generate interest, can be cleared in near real time, and have cheaper handling charges and wider openness
when designing CBDC, the speed of central banks is different. Different central banks adopt their own approach. However, in general, there are three problems being explored: whether CBDC should be based on token or account number, whether CBDC should be batch (only open to banks) or retail (open to the public), and whether it should be based on DLT
when CBDC is to be implemented, things will become complicated, and there are many thorny problems to be considered
for example, once CBDC is launched, does it need to cancel cash? Should CBDC carry interest? Should they have face value like cash? Or linked to the total price index? What impact will this have on commercial banks? What about anonymity and privacy? All these questions need to be answered<
2. Motivation for issuing CBDC
in the 2017 staff discussion paper, the Bank of Canada gave six reasons for issuing CBDC in an article entitled "central bank digital currency: motivation and impact":
1. Ensure that the central bank provides sufficient cash to the public, and maintain the seigniorage revenue of the central bank
2, Support non-traditional monetary policy
3. Rece overall risk and improve financial stability
4. Improve payment competitiveness
5. Promote financial inclusiveness
6. Curb criminal activities
looking back at the bank for International Settlements survey we analyzed earlier, payment security and domestic efficiency are selected as the most important motives of the central bank. According to a large number of papers published by the central bank and other large financial institutions, for developed countries, the transformation into a cashless society is the main driving factor, while for developing countries, financial inclusiveness, cost rection and operational efficiency are the main motivation
throughout the rest of the reports and the literature that can be found, the fierce competition brought about by bitcoin and other innovations in the cryptocurrency instry, as well as the clear need for "one step ahead", of course, are not listed as the reasons for issuing CBDC< The advantages and potential risks of CBDC are very low.
if the central bank starts to launch CBDC and succeeds in the end, there are many potential benefits
from a technical point of view, CBDC is much better than the current form of legal currency. They can be tracked better, collect taxes more conveniently, transmit monetary policy better, have better financial inclusiveness, and rece the cost of procing physical currency
the most obvious advantage is that payment is cheaper and faster, whether it is domestic payment or cross-border payment
in addition to the design and implementation problems, a key problem of issuing CBDC is that CBDC may increase the risk of bank operation. However, this only happens when banks promise that their deposits can be converted into CBDC on demand, which is not necessarily the case, according to the Bank of England document
4. Facts on the ground
how far is it from us to see a real CBDC appear in the market? It's hard to estimate, but at present, we can sum up the current situation in one sentence: all talk but no practice
if we put aside the failed digital currencies of Ecuador, Tunisia and Venezuela, we can only do theoretical research, a small amount of experiments, and issue some feasible CBDC issuance announcements supported by the state in the future
the most famous CBDC projects in progress are: e-peso in Uruguay (the project was successfully tested in 2018), DCEP in China, "project Inthanon" in Thailand, e-krona in Sweden (still in the research stage)...
5. The revolution has not yet been successful, and comrades still need to work hard
considering the factors mentioned above, Most of the headlines about CBDC's upcoming release are groundless. All projects scheled to be released this year have been delayed
in fact, there is still a long way to go for the birth of CBDC, and to convince the public, we need more than a statement. Given the current situation, it seems that CBDC and other cryptocurrencies may not affect each other - at least for now.
2. On the impact of national decp on the blockchain instry
recently, ABC released the news of decp, and the BTC market has also risen in the past two days. Many brothers privately asked me whether there is a connection between the two, so they specially sent a paper to express their views for your reference
first of all, decp is the legal currency anchoring RMB, which is completely centralized and supervised by the state, and achieves the digitization of RMB
decp's operation system (you can search popular science on the Internet): the central bank's digital currency adopts a two-tier operation system, and adheres to the centralized management mode in this process. The full name of decp is digital currency electronic payment. The official definition is: a digital payment instrument with value characteristics. To put it plainly, centralization of electronic payment is similar to the current Alipay and WeChat, but it is different from them, because DECP has no fees and no networking.
as we all know, BTC is decentralized, and transactions need to be confirmed by miners (actually controlled by large mines), so in essence, completely centralized decp does not conflict with BTC
according to personal analysis, there may be the following situations:
first (positive side): the emergence of decp is very likely to make the concept of blockchain decentralization truly popularized to the people of the whole country, so as to increase the number of participants and promote the market of the currency circle
second (bad side): the government has always been committed to strengthening RMB's influence in the world, and will not allow more domestic private capital to flow to the currency circle. It is very likely to publicize the negative information of the currency circle through various media, or to control the exchange to wipe out the participants' motivation from the root, which will lead to the decline of the domestic currency circle market
third (neutral): given that the starting point of the concept of decentralization is to protect money from the influence of one country, one policy, and rece the impact of small-scale financial crisis on its own funds, the impact on the currency circle is likely to be extremely limited
to sum up, I think that the state is highly likely to act on the currency circle (it should have moved for a long time), but it is estimated that it will not affect the people who really believe in decentralization, so it is not the currency circle that is difficult to do in the future, but the domestic openers and team leaders.
recently, ABC released the news of decp, and the BTC market has also risen in the past two days. Many brothers privately asked me whether there is a connection between the two, so they specially sent a paper to express their views for your reference
first of all, decp is the legal currency anchoring RMB, which is completely centralized and supervised by the state, and achieves the digitization of RMB
decp's operation system (you can search popular science on the Internet): the central bank's digital currency adopts a two-tier operation system, and adheres to the centralized management mode in this process. The full name of decp is digital currency electronic payment. The official definition is: a digital payment instrument with value characteristics. To put it plainly, centralization of electronic payment is similar to the current Alipay and WeChat, but it is different from them, because DECP has no fees and no networking.
as we all know, BTC is decentralized, and transactions need to be confirmed by miners (actually controlled by large mines), so in essence, completely centralized decp does not conflict with BTC
according to personal analysis, there may be the following situations:
first (positive side): the emergence of decp is very likely to make the concept of blockchain decentralization truly popularized to the people of the whole country, so as to increase the number of participants and promote the market of the currency circle
second (bad side): the government has always been committed to strengthening RMB's influence in the world, and will not allow more domestic private capital to flow to the currency circle. It is very likely to publicize the negative information of the currency circle through various media, or to control the exchange to wipe out the participants' motivation from the root, which will lead to the decline of the domestic currency circle market
third (neutral): given that the starting point of the concept of decentralization is to protect money from the influence of one country, one policy, and rece the impact of small-scale financial crisis on its own funds, the impact on the currency circle is likely to be extremely limited
to sum up, I think that the state is highly likely to act on the currency circle (it should have moved for a long time), but it is estimated that it will not affect the people who really believe in decentralization, so it is not the currency circle that is difficult to do in the future, but the domestic openers and team leaders.
3. Recently, the hottest topic is blockchain. The 24 eldest brothers formed a team to learn blockchain. This event can be regarded as an epic good in the blockchain circle. Starting from the evening of the 25th, bitcoin soared 40% in one day, and then more than n domestic concept coins soared in turn. The whole coin circle was beaten to death. Many aunts in the circle of friends microblog began to study blockchain; On the stock market, the blockchain sector is also very lively, with more than 1000 listed companies claiming to lay out the blockchain field. This shot is really 666. I remember everyone was busy getting rid of blockchain before! It's really forgetful
in a few days, the safe also released the blockchain development plan. It seems that the whole world will be transformed by blockchain. Many people have a kind of blockchain application, which will give the currency transaction and foreign exchange transaction a false identity
blockchain has a natural anti censorship international nature in terms of asset transaction and circulation, and can freely and conveniently circulate without the constraint of traditional concurrent management. On the one hand, there is a great risk, so the safe also said that in China, only RMB can be used for pricing, and anything that may threaten this basis should be prohibited. In a short period of time, it may be difficult for blockchain to achieve anything at the level of foreign exchange transactions. The foreign exchange bureau mentioned the application scenarios of blockchain technology in cross-border trade financing and macro Prudential Management. This direction belongs to the pure technology application direction, which is less related to transactions. At present, it is also the direction that the top priority is to develop, using blockchain technology to optimize the real instry
how to optimize it? Because blockchain has the characteristics of traceability, distributed transparency, tamper proof, etc., for example, in cross-border trade, the data of related parties involved in trade are linked and opened to third parties (such as banks) with permission. In the past, enterprises may need more practical asset mortgage to borrow money from banks, Now, by associating reliable trade data on the blockchain, the bank can know the future cash flow of the enterprise, and can use the operation of the enterprise as asset mortgage to give credit. This will greatly optimize the allocation of assets
another example is the patient information in the hospital. The traditional scenario is that the data of each hospital is independent. Every time you go to a new hospital, you will be asked to do a booklet or a set of examinations. If there is a medical chain open to all hospitals and all information is recorded in this account book, you can avoid a lot of plication and simplify efficiency
it is clear that the priority is to develop blockchain technology to optimize and transform traditional instries, with the focus on the combination with the real economy. I am also very optimistic about this, but in terms of asset trading, the expectation of currency trading and foreign exchange trading should not be too high. After the excitement, it will be calm. FX technology, fxmap in Assa community
in a few days, the safe also released the blockchain development plan. It seems that the whole world will be transformed by blockchain. Many people have a kind of blockchain application, which will give the currency transaction and foreign exchange transaction a false identity
blockchain has a natural anti censorship international nature in terms of asset transaction and circulation, and can freely and conveniently circulate without the constraint of traditional concurrent management. On the one hand, there is a great risk, so the safe also said that in China, only RMB can be used for pricing, and anything that may threaten this basis should be prohibited. In a short period of time, it may be difficult for blockchain to achieve anything at the level of foreign exchange transactions. The foreign exchange bureau mentioned the application scenarios of blockchain technology in cross-border trade financing and macro Prudential Management. This direction belongs to the pure technology application direction, which is less related to transactions. At present, it is also the direction that the top priority is to develop, using blockchain technology to optimize the real instry
how to optimize it? Because blockchain has the characteristics of traceability, distributed transparency, tamper proof, etc., for example, in cross-border trade, the data of related parties involved in trade are linked and opened to third parties (such as banks) with permission. In the past, enterprises may need more practical asset mortgage to borrow money from banks, Now, by associating reliable trade data on the blockchain, the bank can know the future cash flow of the enterprise, and can use the operation of the enterprise as asset mortgage to give credit. This will greatly optimize the allocation of assets
another example is the patient information in the hospital. The traditional scenario is that the data of each hospital is independent. Every time you go to a new hospital, you will be asked to do a booklet or a set of examinations. If there is a medical chain open to all hospitals and all information is recorded in this account book, you can avoid a lot of plication and simplify efficiency
it is clear that the priority is to develop blockchain technology to optimize and transform traditional instries, with the focus on the combination with the real economy. I am also very optimistic about this, but in terms of asset trading, the expectation of currency trading and foreign exchange trading should not be too high. After the excitement, it will be calm. FX technology, fxmap in Assa community
4. Spain
5. In China, it is becoming more and more common for consumers to take out their mobile phones to pay for coffee, language courses or natural gas bills, rather than using cash as before. Obviously, the use of mobile payment platform in China has increased sharply
China is the first country in the world to use paper money, but after a few centuries, the popularity of mobile payment makes some analysts predict that China may also be the first country to stop using paper money
according to China based iResearch, in 2016, the total commodity value of third-party mobile payment increased by 200% over the same period last year, reaching 38 trillion yuan (about 5.6 trillion US dollars)
as Chinese consumers are increasingly away from physical stores, China's rapidly expanding e-commerce market also supports the growth of cashless systems
Ben Cavender, director of China market research group, said: "I think it is very likely that China will become the first cashless country or one of the first cashless societies in the next 10 years."< According to Cavender's estimation, China's mobile payment market has exceeded that of the United States by 40 to 50 times
cashless mobile payment
Alipay was founded by Alibaba, the e-commerce giant, and now owned by Affiliated Companies ant ant suit. WeChat payment is a popular instant messaging service under Tencent, with hundreds of millions of users, both of which are the main payment platforms in China.
in Beijing, it is difficult to find a proct or service that cannot be purchased with a mobile phone
in the fresh proce market, vendors display bar codes on tables full of fruits and vegetables for customers to scan and pay, although many shoppers seem to prefer cash
some restaurants in the capital no longer accept banknotes, while taxis, street dining cars and hairdressing salons often offer mobile payments
according to a report released in April by the better than cash alliance supported by the United Nations, mobile payment accounted for 8% of total retail payments in 2015 and is expected to reach 12% by 2020. But in China, cash payment is still the main payment method, although it is not as good as before
the better than cash alliance predicts that the proportion of cash in retail payments will drop to 30% by 2020. In 2010, the figure was 61%
one of the main attractions of mobile payment is convenience. People can carry little cash or no cash, and avoid the problem of their debit or credit cards being rejected e to the limited number of terminals at the store's point of sale< According to Martin utreras, vice president of emarketer, the relatively short history of using bank cards in China also makes it easier for consumers to accept new technologies. In China, many people have never owned any automated financial instruments in any way. The first thing they do is to use mobile payment. "
conversion
although mobile payment can bring a lot of convenience, some people are still reluctant to switch to cashless system, especially the elderly
for example, there is a 63 year old woman surnamed song who sells hand-made sunflowers and toys on a pedestrian overpass in Beijing. She likes cash and accepts mobile payments because some customers don't have cash
she said, "cash is more convenient for me because I'm getting older and have poor eyesight."
to be successful, payment providers are expanding their business, offering consumer and business credit scores, short-term loans and even investment procts. This change is in line with the Chinese government's policy of promoting consumer spending and increasing access to financial services for ordinary people
Alibaba and Tencent are also using their strong technology and financial resources in overseas markets to target Chinese tourists and develop China's emerging payment market
earlier this month, Tencent and German payment company Wirecard jointly launched WeChat in Europe, which has already been able to use Alipay.
however, people pay more and more attention to the security of mobile payment. It has been reported that criminals replace real barcodes with forged barcodes, and the software carried by these forged barcodes steals personal information or users' bank accounts
according to the better than case alliance, the authorities are still trying to maintain a "balance between innovation and regulation", and they are more active in taking measures to rece financial risks and fraud< "At present, the government has no tendency to slow down the introction of mobile payment," Cavender said
summary
with the development of the Internet and the formation of people's idea of pursuing convenience and simplicity, mobile payment will become more and more popular, which is a big trend. With the development of this trend, maybe one day, China, as the first country to use paper money, will become the first country to stop using paper money.
China is the first country in the world to use paper money, but after a few centuries, the popularity of mobile payment makes some analysts predict that China may also be the first country to stop using paper money
according to China based iResearch, in 2016, the total commodity value of third-party mobile payment increased by 200% over the same period last year, reaching 38 trillion yuan (about 5.6 trillion US dollars)
as Chinese consumers are increasingly away from physical stores, China's rapidly expanding e-commerce market also supports the growth of cashless systems
Ben Cavender, director of China market research group, said: "I think it is very likely that China will become the first cashless country or one of the first cashless societies in the next 10 years."< According to Cavender's estimation, China's mobile payment market has exceeded that of the United States by 40 to 50 times
cashless mobile payment
Alipay was founded by Alibaba, the e-commerce giant, and now owned by Affiliated Companies ant ant suit. WeChat payment is a popular instant messaging service under Tencent, with hundreds of millions of users, both of which are the main payment platforms in China.
in Beijing, it is difficult to find a proct or service that cannot be purchased with a mobile phone
in the fresh proce market, vendors display bar codes on tables full of fruits and vegetables for customers to scan and pay, although many shoppers seem to prefer cash
some restaurants in the capital no longer accept banknotes, while taxis, street dining cars and hairdressing salons often offer mobile payments
according to a report released in April by the better than cash alliance supported by the United Nations, mobile payment accounted for 8% of total retail payments in 2015 and is expected to reach 12% by 2020. But in China, cash payment is still the main payment method, although it is not as good as before
the better than cash alliance predicts that the proportion of cash in retail payments will drop to 30% by 2020. In 2010, the figure was 61%
one of the main attractions of mobile payment is convenience. People can carry little cash or no cash, and avoid the problem of their debit or credit cards being rejected e to the limited number of terminals at the store's point of sale< According to Martin utreras, vice president of emarketer, the relatively short history of using bank cards in China also makes it easier for consumers to accept new technologies. In China, many people have never owned any automated financial instruments in any way. The first thing they do is to use mobile payment. "
conversion
although mobile payment can bring a lot of convenience, some people are still reluctant to switch to cashless system, especially the elderly
for example, there is a 63 year old woman surnamed song who sells hand-made sunflowers and toys on a pedestrian overpass in Beijing. She likes cash and accepts mobile payments because some customers don't have cash
she said, "cash is more convenient for me because I'm getting older and have poor eyesight."
to be successful, payment providers are expanding their business, offering consumer and business credit scores, short-term loans and even investment procts. This change is in line with the Chinese government's policy of promoting consumer spending and increasing access to financial services for ordinary people
Alibaba and Tencent are also using their strong technology and financial resources in overseas markets to target Chinese tourists and develop China's emerging payment market
earlier this month, Tencent and German payment company Wirecard jointly launched WeChat in Europe, which has already been able to use Alipay.
however, people pay more and more attention to the security of mobile payment. It has been reported that criminals replace real barcodes with forged barcodes, and the software carried by these forged barcodes steals personal information or users' bank accounts
according to the better than case alliance, the authorities are still trying to maintain a "balance between innovation and regulation", and they are more active in taking measures to rece financial risks and fraud< "At present, the government has no tendency to slow down the introction of mobile payment," Cavender said
summary
with the development of the Internet and the formation of people's idea of pursuing convenience and simplicity, mobile payment will become more and more popular, which is a big trend. With the development of this trend, maybe one day, China, as the first country to use paper money, will become the first country to stop using paper money.
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