From: Joe Thomas <jthomas@pawpaw.mitre.org>
Date: Mon, 8 Nov 93 11:58:23 PST
To: cypherpunks@toad.com
Subject: Re: Mostly offline digicash
Message-ID: <9311081957.AA26361@pawpaw.mitre.org>
MIME-Version: 1.0
Content-Type: text/plain


Alan (Gesture Man) Wexelblat <wex@media.mit.edu> writes"
> Nick asks:
> > Why haven't people backed away from credit cards despite $10's of  
billions
> > in fraud? 

> 

>  A very good question.  The reason is largely
> because it's a very profitable business *for the
> card merchants* (banks, mostly).  They get their
> percentage no matter what, and losses don't eat
> into it all that much.
> 

> I agree with much of what Nick says, but I think
> we have to consider ways to help make digicash pay
> for its own implementation and enforcement, or it
> will not take hold.

Hmmm.  Couldn't digicash issuers simply charge up front
for their digicash notes, adding a percentage on top
like travellers checks?  Let the people who want the
convenience and anonymity of digital cash pay for it;
let the merchants redeem it for free.  Sound okay?

Joe