From: “Joseph M. Reagle Jr.” <reagle@rpcp.mit.edu>
To: cypherpunks@toad.com
Message Hash: 0f04fbfdb0fb0e4c75a47b38190327141c3541573f9eb988343bf795b69ee3c8
Message ID: <2.2.32.19961004155849.006ff404@206.33.128.129>
Reply To: N/A
UTC Datetime: 1996-10-05 07:31:29 UTC
Raw Date: Sat, 5 Oct 1996 15:31:29 +0800
From: "Joseph M. Reagle Jr." <reagle@rpcp.mit.edu>
Date: Sat, 5 Oct 1996 15:31:29 +0800
To: cypherpunks@toad.com
Subject: Tietmeyer-Only banks should issue electronic money
Message-ID: <2.2.32.19961004155849.006ff404@206.33.128.129>
MIME-Version: 1.0
Content-Type: text/plain
I'm sure they'd like to have it "applied to Internet network money."....
> FRANKFURT, Oct 3 (Reuter) - Bundesbank President Hans
>Tietmeyer said on Thursday a new government policy to give only
>banks the right to issue pre-paid cards, or ``electronic purses'',
>should also be applied to Internet network money.
> Tietmeyer said in the text of a speech to The Economic Club
>of New York that G-10 central bank governors were addressing the
>new payment forms because they may cause difficulties for
>central banks to ensure the integrity of payments.
> Tietmeyer noted European Union central bankers have agreed
>that only banks should issue the pre-paid cards. The policy is
>expected to be widened to include the rights to create and
>maintain Internet-based electronic cash systems.
> ``In our opinion, the same should definitely also apply to
>network money,'' he said.
> Tietmeyer said electronic forms of money tend to crowd out
>currency and deposit money, which may increase the potential for
>credit institutions to create money.
> ``Electronic money may impair the supervisory functions of
>the central bank, or, in other words, its function of ensuring
>the integrity of payments,'' Tietmeyer said in a text of the
>speech released in Frankfurt under embargo.
> ``That would increase the risk of crises in one country
>spreading out to engulf payment systems worldwide,'' he said.
> Electronic purses are plastic cards with a built-in
>micro-chip which stores the electronic cash value of an account
>and can be reloaded at special machines.
> The proposal to restrict such projects to banks is part of a
>new German banking law which is still under preparation but
>expected to be enforced in 1997.
> Tietmeyer said it was difficult to create definitive
>regulations for electronic money at ``this early stage''.
> ``The evolution of electronic money is only in its infancy.
>But it is a characteristic feature of today's world that
>tomorrow's world will be upon us in no time,'' he said.
> Electronic purses, also known as smart cards, are not yet
>available in cash-dominated Germany but tests are being run on
>several projects.
> Internet banking is slowly gaining credence in Germany after
>some of the top banks, including Dresdner Bank AG, launched
>securities trading accounts via the Internet.
_______________________
Regards, He who foresees calamities suffers them twice over. -?
Joseph Reagle http://rpcp.mit.edu/~reagle/home.html
reagle@mit.edu E0 D5 B2 05 B6 12 DA 65 BE 4D E3 C1 6A 66 25 4E
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