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We describe challenges in the risk management of smart card based electronic cash industry and describe a method to evaluate the effectiveness of distributed intelligence on the smart card. More specifically, we discuss the evaluation of distributed intelligence function called "on-chip risk management" of the smart card for the global electronic cash payment application using micro dynamic simulation. Handling of uncertainty related to future economic environment, various potential counterfeitarXiv:1301.6693v1 fatcat:nsieijdeb5gm7orek3zthg6bpi