From: eric@remailer.net (Eric Hughes)
Date: Thu, 8 Dec 94 17:29:35 PST
To: cypherpunks@toad.com
Subject: Re: backing ecash
In-Reply-To: <199412050431.WAA00176@omaha.omaha.com>
Message-ID: <199412090227.SAA24809@largo.remailer.net>
MIME-Version: 1.0
Content-Type: text/plain


   From: Alex Strasheim <alex@omaha.com>

   Suppose Digicash opened up a digital currency exchange in Amsterdam.
   [...]

Left unexamined here are the ways in which various things can go
wrong.

   Edollars would still have value here in Lincoln, NE USA.

How much?  Not full value, that's for sure, because of the risk cost
associated with getting the edollars back to Amsterdam.  What happens
when womthing goes wrong in Amsterdam?  What happens?  What effective
recourse does a USA holder have with respect to a Netherlands company?

Your basic idea, however, is right on target, that you don't need to
be a bank to issue digital currency.  On the other hand, with that
realization your problems are only beginning.

Eric