From: Duncan Frissell <frissell@panix.com>
Date: Sat, 31 Jul 93 18:38:54 PDT
To: cypherpunks@toad.com
Subject: Outlawing Cash
Message-ID: <199308010320.AA17036@panix.com>
MIME-Version: 1.0
Content-Type: text/plain


To: cypherpunks@toad.com


>>>even "poor people" will then have credit
or debit cards. This eliminates the last practical argument for
allowing cash. <<<

However, there is another major argument in favor of cash - that it 
provides a concrete and absolutly enforcible accounting system for people 
who are totally unable to use any other system (illiterate, mentally 
defective, spendthrift, non-abstract thinkers, etc).  A fair chunk of the 
population can't handle an electronic payments system to save their lives.

>>>There will be the usual objections, but the "War on
Drugs" and the war on the underground economy, money laundering, etc.,
will be cited as a more pressing concern than the "freedom" to use
cash.<<<

Hopefully we will have radically restructured the system before them.


>>>An insistence on using cash, when electronic transactions are
*so much more convenient* will be see at best as an eccentricity and
at worst as grounds for further investigation.<<<

Do they have enough cops.  There is so much "wrongdoing" out there (and 
it is on the rise) that the cops will have their hands full just keeping a 
lid on things without being able to pursue such "thin" investigatory 
leads.

The other point usually ignored is that even an EPS can provide anonymity. 
 As electronic payments become more common and necessary, a market is 
created to help those with lousy access to the systems to complete these 
transactions.  Check cashing services are booming and they are starting to 
offer various sorts of EPS services (phone bills, etc).  The private 
payphone companies (and AT&T) are starting to sell 'debit' phonecards that 
are now making it easy to complete anonymous LD calls without a pile of 
quarters.  Secured credit cards are being issued by everyone from Western 
Union to Citibank.  These secured credit cards are designed for people 
with no credit history.  Non-existent people (created to serve one's 
own purposes) have truly non-existant credit histories.  Credit and debit 
cards acquired from banks in Haven jurisdictions overseas can also be used 
domestically.

The First Digital Bank of Cyberspace (SM) will issue debit Visa cards as 
one of its first marketing ploys.  You pick your own name.

>>>We Cypherpunks need to ensure our plans for digital money are not
closed off by these sorts of moves. (I'm not sure what we need to do,
or can do, but it's worth thinking about.)<<<

No doubt about it.

Duncan Frissell

Did you know that it is still possible -- in 1993 -- to open a bank 
account in the United States in a nome de guerre?

Like all rulers, William Jefferson Blythe Clinton is a libertarian for 
himself.  By the appropriate application of technology, we can force him, 
the Mrs., and all the other rulers to grant us the liberty that they 
arrogate to themselves.  

7 X</--- WinQwk 2.0b#07 X</