From: "E. ALLEN SMITH" <EALLENSMITH@ocelot.Rutgers.EDU>
Date: Sat, 6 Jul 1996 11:53:37 +0800
To: cypherpunks@toad.com
Subject: E-cash & G10 in the news
Message-ID: <01I6Q75MZDP0984P39@mbcl.rutgers.edu>
MIME-Version: 1.0
Content-Type: text/plain


	It's interesting but actually unsurprising that they're looking at the
cash cards before they are the Internet money exchange stuff. They haven't
spotted exactly how much of a difference the latter can make - the former will
act about like cash at "worst" from their viewpoint.
	-Allen

>   Reuters New Media
   
>   _ Friday July 5 12:27 PM EDT _
   
>G10 mulls effect of E-cash on policy and fraud
   
>   ZURICH - The threat of fraud, money laundering and tax evasion from
>   new electronic payment systems will be high on the agenda of Monday's
>   monthly meeting of Group of 10 (G10) central bankers at the Bank for
>   International Settlements (BIS).
   
>   The central bank governors will be briefed on two reports that examine
>   the implication of emerging forms of payment -- electronic purses,
>   e-cash, cybercash -- on monetary policy and whether it will open the
>   way to widespread fraud.
   
>   With big banks already waging a fierce battle to set a new global
>   standard for electronic cash, central bankers want to stay on top of a
>   technology that is not only likely to destabilize monetary aggregates,
>   but also holds out the promise a cashless society and threatens the
>   monopoly of central banks to issue notes and coins.
   
>   William McDonough, president of the New York Federal Reserve and
>   chairman of the G10 Committee on Payment and Settlement Systems, will
>   brief his colleagues on electronic money and fraud, money laundering,
>   counterfeiting, tax and legal issues.
   
>   The other report, to be presented by Charles Freedman, Bank of Canada
>   deputy governor, explores the issue of electronic money and monetary
>   policy.
   
>   Whether G10 governors take action or merely note the reports and let
>   them fade into the BIS archives is uncertain. An initial decision will
>   probably be taken at the meeting.
   
>   The two reports will focus mainly on the implications of prepaid cards
>   rather than so-called network money, cybercash or digital cash as the
>   latter is less developed.
   
[...]

>   The concept of electronic money covers a wide range of new payment
>   methods ranging from multi-purpose, rechargeable prepaid cards, such
>   as Mondex, to forms of digital cash or cybermoney that enable shoppers
>   to pay for goods over the Internet.
   
[...]
   
>   Copyright, Reuters Ltd. All rights reserved