From: Ryan Lackey <ryan@pobox.com>
Date: Sun, 31 Dec 1995 08:13:42 +0800
To: cypherpunks@toad.com
Subject: Starting an e-cash bank
Message-ID: <199512302305.SAA20998@netaxs.com>
MIME-Version: 1.0
Content-Type: text/plain


_Money_ is at the root of control of cyberspace.  If states control the
banks issuing the currency, states will control cyberspace.  If the
banks/issuers of coins are beyond the reach of statist governments,
cyberspace will remain free.  Crytpo of course will allow the banks to issue
coins, but if they have to follow statist laws, crypto won't really help
them all that much -- I don't know many bank execs willing to face down the
US Government with nothing to back them up but ~unbreakable codes. 

What would it take to start an anonymous, private, secure, etc. etc. bank
issuing e-cash, located in a country without taxes/etc.?  I assume a tax
haven like the Cayman Islands or a small third world country somewhere would
have plenty of nice tax-shelter banks interested in such a venture.  Of
course, it would be quite illegal to transfer money to such a bank, but once
it's there, wouldn't coins be perfectly legitimate currency?  The bank could
even make money by issuing coins for $US held in vaults, $US invested in
different mutual-fund type things or other currencies, and perhaps even
coins backed only by the bank's profits (sounds like stock).

A cypherpunk?  me?,
Ryan
<ryan@pobox.com>