From: Sandy <72114.1712@CompuServe.COM>
Date: Fri, 18 Feb 94 11:56:14 PST
To: <cypherpunks@toad.com>
Subject: REAL WORLD ENCRYPTION
Message-ID: <940218194654_72114.1712_FHF64-1@CompuServe.COM>
MIME-Version: 1.0
Content-Type: text/plain



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                         SANDY SANDFORT
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C'punks,

This is a belated reply to the issues raised by Tim May about
digital banking.  Also, I would like to have Tim clarify some of
the statements/assumptions he made.

Tim wrote:

    . . . how much I put [in a digital bank] would be
    dependent on the degree of "Swiss"-type services.
    Probably not many such services, I am surmising . . .

Actually, we will begin operation with a basic set of Swiss-type
services, and will bring a wide range of others on board as soon
as practical.

    . . . if I remained in
U.S., no protection.  If I left
    U.S., no _need_ for your bank.

I think this is incorrect on both counts.  If Tim remains in the
US, he absolutely needs the protection an offshore bank (digital
or otherwise) can provide.  Without one, there is no way he can
keep his assets from being at risk.  Having some of his money out
of the States is an insurance policy against extortion and/or
seizure.

If Tim leaves the US, he will still have to live *someplace*, and
*someplace* might want to grab his money every bit as much as the
US government (or litigious thieves) would.  In addition, Tim
will still need a simple, quick and secure way to transact
business in the US and elsewhere.

    . . . You can't be a real digital money bank, in the
    long-range sense we've talked about.  (Total anonymity,
    Liechtenstein "anstalt"-type anonymity, digitally
    mediated.)

I don't see what is to stop us.  Perhaps Tim will elucidate.

Tim went on to say that Cypherpunks would not be enough to
financially support our bank and that "high rollers" would not be
interested.  True (though largely irrelevant) and false.  The 700
Cypherpunks are a drop in the 20 mega-user Internet.  We only
have to get a small fraction of that market to make our nut.

Without false modesty, I can safely say, I have met and dealt
with far more "high rollers" (and real tax avoiders, for that
matter) than Tim will ever know.  I know what they want.  We have
what they want.  We will get their business.  Period.

As for the Feds, privacy, regulations, etc., see my previous few
posts.


 S a n d y

             Unencrypted e-mail to sandfort@crl.com
             PGP encrypted to ssandfort@attmail.com
             Nothing to my CompuServe acct., please

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