From: tcmay@netcom.com (Timothy C. May)
Date: Mon, 4 Apr 94 12:59:00 PDT
To: consensus@netcom.com (Christopher Allen)
Subject: The AntiCash -- was: Electronic Purse Press Release
In-Reply-To: <199404041904.MAA23728@mail.netcom.com>
Message-ID: <199404041959.MAA14536@mail.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


Thanks to Christopher Allen for passing on that latest "Digital Purse"
proposal. I won't quote-and-comment here.

Does this system provide _any_ protection againt fine-granularity
monitoring of payer identity? The talk of "clearinghouses" and the
involvement of VISA International and the Usual Suspects suggest
identity-blinding protocols are not in use. I also see no mention of
DigiCash, or even RSA (but maybe I missed that--and the presence of
RSA would not necessairly mean identity-blinding protocols were being
planned).

Likely Scenario: This is *not* digital cash as we think of it. Rather,
this is a future evolution of the cash ATM card and credit card,
optimized for faster and cheaper clearing.

Scary Scenario: This could be the vehicle for the long-rumored
"banning of cash." (Just because conspiracy theorists and Number of
the Beast Xtian fundamentalists belive it doesn't render it
implausible.)

There are many "reasons" to ban cash and make it all electronic:

* War on Drugs....need I say more?

* surface the underground economy, by withdrawing paper currency and
forcing all monetary transaction into forms that can be easily
monitored, regulated, and taxed.

* reduce theft of welfare checks, disability payments, etc....a
problem in some locales, and automatic deposit/cash card approaches
are being evaluated. 

* illegal immigrants, welfare cheats, etc. Give everyone a National
Identity Card (they'll call it something different. to make it more
palatable, such as "Social Services Portable Inventory Unit" or
"Health Rights Document").

There was a time when I would've said Americans, at least, would've
rejected such a thing. Too many memories of "Papieren, bitte. Macht
schnell!" But I now think most Americans (and Europeans) are so used
to producing documents for every transaction, and so used to using
VISA cards and ATM cards at gas stations, supermarkets, and even at
flea markets, that they'll willingly--even eagerly--adopt such a
system.

Make no mistake, this is not the digital cash that Cypherpunks
espouse. This gives the credit agencies and the government (the two
work hand in hand) complete traceability of all purchases, automatic
reporting of spending patterns, target lists for those who frequent
about-to-be-outlawed businesses, and invasive surveillance of all
inter-personal economic transactions.

This is the AntiCash.

Beware the Number of the AntiCash.


--Tim May


-- 
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