From: abostick@netcom.com (Alan Bostick)
Date: Sun, 12 May 1996 08:00:00 +0800
To: cypherpunks@toad.com
Subject: Re: distinctive properties of ecash, netbill, cybercash and iKP
In-Reply-To: <Pine.GSO.3.93.960511163200.17967B-100000@happyman>
Message-ID: <+kMlx8m9LQfO085yn@netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


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In article <Pine.GSO.3.93.960511163200.17967B-100000@happyman>,
=?ISO-8859-1?Q?J=FCri_Kaljundi?= <jk@stallion.ee> wrote:
> 
>  Sat, 11 May 1996, Jon Moore wrote:

> > The banks/cash-issuing corporations are likely to support anything
> > that is secure enough, and looks like a runner, because any e-money
> > scheme is profitable to them (they earn interest on the
> > corresponding real cash while the e-money is in circulation). 
> 
> This is one question why the central bank in Estonia (I am not sure about
> other countries) does not allow issuing e-cash here in Estonia. While the
> banks issue e-cash to people, they get some real cash from people.  This
> leads to actually doubleing the money in circulation, each monetary unit,
> either dollar or kroon, can at the same time be used by owner of e-cash
> and at the same time by the bank. The central banks are afraid that when
> the amount of e-cash in circulation gets big, this could lead to
> devalvation of money, especially a small country like Estonia is afraid of
> such development.

Good heavens!  Are checking accounts illegal in Estonia, then?  The exact
same argument applies to them.

> 
> Anonymity of monetary transactions is another thing that Bank of Estonia
> has declared illegal.

Cash is illegal, too!  How does the economy in Estonia work these days?
Barter?

- -- 
Alan Bostick               | "The thing is, I've got rhythm but I don't have
mailto:abostick@netcom.com | music, so I guess I could ask for a few more 
news:alt.grelb             | things." (overheard)
http://www.alumni.caltech.edu/~abostick

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