From: Duncan Frissell <76630.3577@CompuServe.COM>
Date: Tue, 15 Jun 93 13:15:29 PDT
To: <cypherpunks@toad.com>
Subject: digital cash
Message-ID: <930615194400_76630.3577_EHK24-1@CompuServe.COM>
MIME-Version: 1.0
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>>>The legal issues involved in setting up a real world money system are
enormous.<<<
 
No need.  This is the advantage of piggy backing a digital cash application
onto an existing offshore financial institution.  It is true that if I sat
in the US and started to offer digital cash accounts I would be subject to
a lot of regulation.
 
DC would probably be held to be a 'security' and there are all sorts of
financial regulations involved.  It might be possible to get a regulatory
waiver for an experimental system if we got an academic partner like the
Iowa Political Stock Market which also traded 'securities' with account
sizes up to $1,000.  On the other hand, other jurisdictions are not as
regulated as the US is.
 
Generally, solicitations for unregistered securities cannot be directed to
Americans except in international publications.  I would advocate that all
physical mail involved in such an application be sent and received overseas
(The City of London would be convenient) and that all email be sent via
Julf's remailer.  We could also start an internet DC email group (as a
feedback and semi-advertising medium) sent from Finland.  (Julf willing of
course.)  It would be interesting to see the litigation about whether or
not such a publication is a "domestic" publication.  It should be easy to
find non-US residents to be the nominal "publishers."
 
Now all we need is a banking haven jurisdiction with good internet
connections...  I *have* been looking.
 
Duncan Frissell
 
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