From: "Kent Hastings" <kent_hastings@qmail2.aero.org>
Date: Tue, 10 Aug 93 13:26:53 PDT
To: cypherpunks@toad.com
Subject: ADICO: Anarchist FDIC
Message-ID: <199308102022.AA10924@aerospace.aero.org>
MIME-Version: 1.0
Content-Type: text/plain


                      ADICO: Anarchist FDIC#000#
When someone objects to free banking (in gold, for example) on 
the grounds that unregulated banks will have fractional reserves 
and have no incentive to stay honest, perhaps describing an 
Anarchist Deposit Insurance COmpany (ADICO) will ease their fears.

A new or relatively obscure offshore bank would gain the trust of 
potential depositors by agreeing to cooperate with surprise 
inspections of their gold supply. Depositors would pay a small
premium to cover loss from bank failures due to theft or fraud.

Cryptographic protocols would need to be developed to allow the 
ADICO to see a verified total amount on deposit, without revealing
anything about any particular depositor. The total should match 
the physical amount of gold in storage, assuming 100% reserves.

Does anybody know of work on this, or think it is worth researching?

Kent - <jkhastings@aol.com>
#000#