**This document is not a business plan**

Ploutos (Bank) & Pisti Payment Network

Overview We will offer the easiest and most convenient ways to access and use Bitcoin by the general public and merchants here in Cyprus. Cyprus is the ideal location to set a precedent globally for the mass adoption of Bitcoin as an alternative currency, due to the lack of confidence in the traditional banking sector. The population is not too large to bring about widespread changes and it is also not too small to go unnoticed globally. Upon start-up we will establish our first branch in the capital Nicosia, and the branch will operate very similar to any regular bank branch allowing the deposit of cash into the customers account which will be converted into Bitcoin. All accounts will be delegated an account number so the general public does not have to familiarise themselves with cryptography or the intricate details of Bitcoin. All the technical aspects of Bitcoin will be completed in the background for the customer. We will also offer accounts that remove the risk created by the volatility of the exchange rate away from the customer. We shall operate adhering to the principles of full-reserve banking. We will establish our own card payment network for retailers both in the high street and within the e-commerce industry. With one company holding the monopoly over traditional card payment networks the fees for card acceptance are high and the settlement terms can extend to 30 days. We will set about the task of educating a population that has seen the traditional banks raid their deposits to pay for the bankers own failings, using terms and products the average person can understand, through planned and targeted advertising campaigns. The target demographic of our customers will be those aged between 16 and 65 who do not currently use Bitcoin. We are not aiming to capture the existing community of Bitcoin users. The Cypriot marketplace The whole world focused on Cyprus in March 2013 when the government imposed strict capital controls and the decision was made to enforce a onetime levy of 20%+ on all deposits over 100,000 held within the 2 largest banks in Cyprus. This action has undermined the security offered by keeping deposits within a traditional bank here in Cyprus. Cyprus has a population of 1.117 million, the core nationality groupings of the population are, Greek Cypriots, Turkish Cypriots, British citizens and Russian citizens. The key areas of population are, Nicosia (Capital City), Paphos, Limassol and Larnaca. The percentage of households in 2012 with internet connectivity was 70%. E-commerce According to the annual survey Information and Communication Technologies Usage and ECommerce in Enterprises 2012, carried out by Cyprus Statistical Service, only 8.4% of the enterprises covered in the survey said they accepted orders through the internet, and 18.6% of the enterprises placed orders via the internet. This is due to the high charges incurred for processing credit and debit card transactions in Cyprus because the market is monopolised by JCC.

Payment Gateways JCC hold a monopoly over the acceptance of debit and credit card transactions so fees are high with terms that prevent many merchants from offering both card payment facilities in store and online sales. JCC the facts and figures (2012) 85,000+ transactions per day (peaks up to 250,000). Over 20,000 card acceptance points on the island. Card acquiring in Cyprus, (2012): 2.7 bn. Reported fees have been as high as 20% per transaction with settlement times as long as 30 days for both high street retailers and for those in the e-commerce sector. Central bank of Cyprus (Regulators) The recent EU Payment Services Directive does not extend to virtual currencies. Under the current regulations Bitcoin participants will not require licensing or disclosure under the EU (and in member states like the UK). Intermediaries and market operators will not require a licence to deal in this product either. That is, unlike the US and Australian approach, the EU and UK approaches are not designed in a way to easily cater for payment facilities without a clear issuer. Ploutos will from start-up integrate procedures and standards that meet the requirements set out by the Central Bank of Cyprus for the operation of a banking organization, this will ensure all licensing requirements are met in advance when or if a shift in policy occurs. Current Capital Controls The transfer of cashless payments to other credit institutions within the Republic is 15.000 per month per natural person in each credit institution regardless of the purpose. The ceiling for overseas transactions is 5.000 per month per person if the transaction is sending money to a student or completing payment of an invoice related to a business. Credit card or debit card payments outside the Republic debit are allowed. The ceiling for exporting banknotes for natural persons per trip is 3.000 or the equivalent in a foreign currency. The daily cash withdrawal limit is 300
**We have contacted the Central Bank of Cyprus seeking legal clarification a response is still being awaited**

The Reported issues with Bitcoin Converting government issued currencies into crypto-currencies. Fluctuation in the rate of exchange. Securing a Bitcoin wallet. Where to spend your Bitcoins. Daunting technical aspects of Bitcoin, cryptography, mining and proof of work.

Our Solutions Converting government issued currencies into crypto-currencies Ploutos will offer a branch network that allows the deposit and withdrawal of Euros into their Bitcoin denominated accounts, through a strategic partnership with a private bank (to be confirmed) IBAN/SWIFT/SEPA deposits and withdrawals will allow customers to wire transfer funds between international accounts held with traditional banks.

Fluctuation in the rate of exchange Ploutos will offer a range of accounts. As an example one type of account balance held is purely denominated in Bitcoin and the depositors spending power will fluctuate with the exchange rate of Bitcoin. This places the risk on the depositor. Another type of account the balance will be pegged to the Euro placing the risk onto Ploutos, for this type of account Ploutos will implement a thoroughly planned hedging strategy to ensure the impact of a reduction in the exchange rate is kept to the absolute minimum. Securing a Bitcoin wallet The internal systems used for our payment gateways will be PCI-DSS compliant and all other software and hardware implementations will be designed to comply with the FISC guidelines on computer systems for banking and related financial institutions. This removes the responsibility of securing the wallet onto ourselves. All online banking services will feature multiple verification methods to ensure the level of risk is reduced to the absolute minimum for the losses incurred through fraudulently accessed online accounts. Where to spend your Bitcoins The Pisti payment network will offer both e-commerce and retail solutions for the acceptance of Bitcoin payment here in Cyprus for our merchant account holders. This will be achieved through the implementation of our own network based on the VISA/MasterCard model, through the integration and use of Chip and Pin Terminals. With the implementation of this network we shall provide merchant services at much lower rates with an almost instant deposit to the merchants account. Every instant access account holder will be provided with a Chip and Pin payment card. Daunting technical aspects of Bitcoin, cryptography, mining and proof of work The Ploutos user interfaces will present our customers with an 8 digit account number, this account number will be linked directly to the customers public key, removing the daunting task of inputting a 34 public key in order to send a payment to another customer of Ploutos. Ploutos will remove all the technicalities of Bitcoin and its use to ensure the average person in the street can integrate Bitcoin with their daily routine. The services Ploutos will offer On Demand (Pegged) Instant access. Cash, SEPA and wire transfer methods for deposits and withdrawals. Pegged to the Euro to shift risk away from the depositor. Fixed low monthly charge with no transaction fees. Pisti debit card for use both online and in stores. Online and branch based facilities for managing the account. Bill Payment facility. On Demand (BTC Denominated) Instant access. Cash, SEPA and wire transfer methods for deposits and withdrawals. No monthly charge. Pisti debit card for use both online and in stores. Online and branch based facilities for managing the account. Bitcoin exchange rate determined on long term averages to increase price stability. Bill Payment facility.

Secure Storage (BTC Paper Wallet) Cash deposits. 0.5% deposit fee for take away paper wallets. 1% deposit fee for the paper wallet to be stored within the branches vault. Short URL for checking blockchain to check wallet balance. Wallet is generated, printed, loaded and sealed in the customers presence. Savings Account (Pegged) Fixed for an agreed period of time (Optional). Interest payable (Optional). Cash, SEPA and wire transfer methods for deposits and withdrawals. Online and branch based facilities for managing the account. Pegged to the Euro to shift risk away from the depositor. Savings Account (BTC Denominated) Fixed for an agreed period of time (Optional). Interest payable (Optional). Cash, SEPA and wire transfer methods for deposits and withdrawals. Online and branch based facilities for managing the account. Bitcoin exchange rate determined on long term averages to increase price stability. Merchant Account POS Terminal for the acceptance of Pisti card payments. Online merchant services with 2 step authentication as standard. Instant availability of funds. Payments can be retained in Bitcoin or instantly converted to the Euro. Business Account (Pegged) Instant access. Cash, SEPA and wire transfer methods for deposits and withdrawals. Pegged to the Euro to shift risk away from the merchant. Pisti debit card for use both online and in stores. Online and branch based facilities for managing the account. Bill Payment facility. Billing request facility/Direct Debit Facility** Business Account (BTC Denominated) Instant access. Cash, SEPA and wire transfer methods for deposits and withdrawals. Pisti debit card for use both online and in stores. Online and branch based facilities for managing the account. Bill Payment facility. Billing request facility/Direct Debit Facility** **Ploutos will be connected to the traditional banking infrastructure through a strategic partnership with a private bank based in Panama, this partnership will allow the deposit directly into a Ploutos account and the withdrawal of any currency through a wire transfer service (IBAN/SWIFT). The proposed partnership would enable Ploutos to store government issued FIAT on behalf of the partnered bank, this solution enables Ploutos to credit accounts held with the partner bank without the need to transport the cash to anywhere outside of the country. This process will be subject to external audit from the partnered bank. **To be confirmed

Future service offerings and scalability Lending services. Instant cash transfers worldwide through a network of local agents (Western Union). The exchange of precious metals for Bitcoin. All the systems created will be scalable to allow for the expansion of the Ploutos branch network both in Cyprus and globally, the software being created can be licensed to other start-ups providing the same services in other jurisdictions, this will aid the creation of a new international banking network. Ploutos plans to expand into other local areas with dense population within Cyprus to ensure our customer base has an ease of access to Ploutos services. Risk Bitcoin Vulnerabilities In the event of SHA256 becoming compromised, the Bitcoin protocol can shift to a stronger algorithm. The implementation of the algorithm would be completed by a mass update across the entire network, although destabilising for the network and the Bitcoin economy, the entire world places a great deal of trust into the SHA256 algorithm which would result in many global issues and not issues purely focused on Bitcoin. Hard Fork In the event of a fork occurring on the Bitcoin network due to the nature of the Ploutos systems the large majority of transactions will be completed off chain, once the chain with the longest fork has been collectively followed and the cause addressed by the community as a whole, only then will Ploutos resume posting transactions to the Blockchain. The hard fork that occurred on May 15th 2013 was resolved within a matter of hours. The impact of such an event would be minimal on the operations of Ploutos. The previous occurrence of a hard fork demonstrated the openness and the ability of the Bitcoin community as a whole to address issues in a timely manner. Regulatory Risks The current view on Bitcoin held by the European Central Bank declares that Bitcoin does not adhere to the requirements that would deem Bitcoin as Money. Should this stance change the exchange of government issued fiat currencies and Bitcoin would become regulated, Ploutos from inception will operate in full compliance with all current regulations placed upon the traditional banks, to ensure that any policy changes have minimal effect on the operations of Ploutos, by adhering to these regulations Ploutos will be in a suitable position to register immediately upon any policy change occurring. If the government of Cyprus was to declare the use of Bitcoin illegal it would set a precedent for the rest of the world although the Bitcoin network is impossible to shut down without turning the internet off for the worlds entire population. This scenario however unlikely would have a catastrophic effect on the exchange rate of Bitcoin. Ploutos will work closely with the regulators and the government to ensure the impact of Ploutos will be of benefit to the economy of Cyprus thus preventing the need to declare the use of Bitcoin as illegal. Competition risks Should JCC and the existing banking sector threaten our merchants and customers with account closure for using Bitcoin, the facilities offered by Ploutos would allow our merchants and customers to transfer all of their business to Ploutos. For JCC and the existing banks to take these measures Ploutos would already have successful foundations in place. Any reactions in this form would be legally challenged at the highest possible level.

Infrastructure Risks Failure of the IT and communications infrastructure would cause significant operational issues, to reduce this risk Ploutos will deploy several countermeasures to ensure reliability and minimum impact should part the network fail. Backups of all data will be made frequently and securely stored to ensure that total loss of data would never occur. Security is a high priority for Ploutos to ensure that all of the funds held are kept secure and the majority of reserves will be stored securely offline, to reduce losses if the security measures were breached. Market risks Although the exchange rate has been rising exponentially year on year since Bitcoins release, the chance of the market crashing is still a possibility due to the small market capitalization, mass adoption would reduce this risk considerably. Should the exchange rate crash Ploutos will hedge against these losses to ensure the deposits held remain safe. Human Risks Internal theft poses a small but real risk, Ploutos will employ an internal head of security that will report directly to the CEO. Strict cash handling procedures and reporting practices will be developed and implemented. All transactions over a set threshold will require multiple authorisation before the transaction can be completed. All employees will be vetted prior to employment to ensure the employment of a certain individual does not increase the risk of internal theft. Ploutos internal procedures and policies will reduce the impact of any robbery or breach of a branch vault by thieves. The vaults used in the construction of branches will be of the highest quality rating possible. Internal policies will ensure cash (Euros) held at each branch does not exceed the insured limit. Ploutos will utilize the services of a reputable and insured cash handling company to reduce the risk of having large cash sums held within our own vaults onto a reputable third party. Natural threats The biggest natural threat in Cyprus is drought during the hot summers. The country has a moderate rating for seismic activity. Operational procedures will be developed for all realistic eventualities to ensure that business operations can continue during disruptions. Marketing Bitcoin is a relatively unknown currency here in Cyprus, those that have heard it mentioned in the media do like the idea of the decentralized nature but do not understand the technicalities. The approach Ploutos will take towards marketing our services will ensure that we inform potential customers that they have no need to change their daily routine with regards to the management of their finances and taking control of their own money. The strongest marketing message Ploutos can deliver will be the ability to place their deposits into an account where not even Ploutos can take the funds without them inputting their Password/Pin or multi-factor authentication information. Ploutos putting your money where it cant be frozen, spent or taken by anyone other than you Prior to launch Ploutos will embark on a marketing campaign dedicated to introducing people to the world of Bitcoin, this campaign will ensure the audience understands the key benefits of Bitcoin whilst addressing many of the myths associated with Bitcoin as portrayed in the print/online media. This campaign will target the following groups; Merchants The General Public Students

Merchants Business networking events will be hosted to engage with merchants and promote the acceptance of Bitcoin within their stores and promote the new found viability of e-commerce. Popular trade magazines will be used to promote both what Ploutos and the Pisti network can offer and the networking events we shall be hosting. We will offer incentives for those who wish to integrate Bitcoin acceptance through discounted products and lower transaction fees. The key points we will highlight will be the lower cost of accepting payments, the instant availability of funds, the reduced possibility of chargebacks due to bio-metric authentication (sustainability and security is currently under investigation) at the point of sale and the use of multi-factor authentication. Merchants will also be incentivised to promote the acceptance of Bitcoin to their suppliers through the use of discounted transaction fees. General Public Billboard campaigns throughout Nicosia city centre and on the motorway leading to the capital will be utilized to promote Ploutos, Pisti and the benefits of Bitcoin. With many Cypriots not spending the majority of their social life at the computer due to the lack of variety within the e-commerce space, print media and flyer campaigns will be used to introduce the general population to Ploutos, Pisti and Bitcoin. Television and radio campaigns will be used to promote a new way of banking for the people. Students Campaigns directly engaging students within the city of Nicosia will drive the promotion of on demand accounts, sponsored events will be scheduled utilising the best of popular culture whilst ensuring maximum product placement can occur during these events.