From: "Perry E. Metzger" <perry@snark.imsi.com>
Date: Tue, 3 May 94 13:05:20 PDT
To: cypherpunks@toad.com
Subject: Re: digital cash
In-Reply-To: <0097DE1B16127260.0000344D@cbpi.UUCP>
Message-ID: <9405032005.AA29597@snark.imsi.com>
MIME-Version: 1.0
Content-Type: text/plain



daily%cbpi.UUCP@dmc.com says:
> 1. You will need  a place that not only you trust, but that the people you 
> are dealing with will trust. This place must be accessible physically as well
> as electronically. Physically so I can walk in and deposit money anonymously
> (so there is no electronic trail),

You can deposit money electronically without leaving a trail, too.

I'm not going to say how -- consider it a "trade secret", but others
will doubtless come up with similar ideas to mine.

> and also so that I can give money to 
> people who have no computer.

You don't need to be near the bank for that either. Use an ATM machine.

> The only way to get money out of the account would be with a PGP like 
> signature. I set the private key when I open the account. The public keys 
> would be designed to incorporate the amount of the e-check I'm writing. 
> When you go to the  bank to cash in your key, the key is recorded so it 
> can't be used again, and the bank gives the money to the key holder.

Why not just sign an electronic bank draft? Why not use Chaumian
digicash? Seems far too complicated.

I would suggest that you probably ought to read up more on the subject
-- you have obvious enthusiasm for it, but others have already thought
of many of these issues in detail. Reading Chaum's paper and learning
a bit about commercial law (especially w.r.t. commercial paper) and
the "open literature" on anonymous electronic banking would be
valuable.

> I think banks would go for this because they get the float on our
> money, they don't have to pay interest, and they don't have to send
> monthly statements.

Of course, its illegal for them to do this in the U.S. -- banks can't
give out numbered or otherwise anonymous accounts. It could be done
overseas, of course...

Perry