From: "Timothy C. May" <tcmay@got.net>
Date: Mon, 30 Dec 1996 14:31:36 -0800 (PST)
To: cypherpunks@toad.com
Subject: Re: Untraceable Payments, Extortion, and Other Bad Things
In-Reply-To: <Pine.LNX.3.95.961230105436.594A-100000@jolietjake.com>
Message-ID: <v03007801aeedf3cfaecb@[207.167.93.63]>
MIME-Version: 1.0
Content-Type: text/plain


At 3:59 PM -0500 12/30/96, Mark M. wrote:

>On Mon, 30 Dec 1996, Omegaman wrote:

>> One rogue bank, therefore, can be frozen out if others are not using
>> Chaumian cash.
>
>I don't see how one bank offering fully anonymous digital cash could be
>"frozen out."  Partially untracable cash systems may be much more popular, but
>as long as the fully anonymous system receives enough money to stay in
>business, there would be little risk of fading away.  A bank offering fully
>anonymous digital cash could be used for tax evasion, extortion, and money
>laundering.  These crimes usually involve large sums of money, so this would
>keep the bank in business.

Precisely my sentiment. And as I said in my main response to Omegaman's
points, all Ed the Extortionist has to do is cash in his digibux at the
bank; at worst this involves a trip to the physical site of the bank.

(Yes, he may be photographed by the bank, etc., but the payments are
untraceable, meaning, unlinkable. All the bank knows is that Ed is
redeeming $100,000 worth of digibux, and taking his payment in dollars, or
gold, or whatever. I grant you that having only fully untraceable digital
cash issuer is far from ideal, for various reasons. But I was addressing
the point Omegaman made that having only one such bank would mean it would
or could be driven out of business by other banks...I disagree.)

--Tim May


Just say "No" to "Big Brother Inside"
We got computers, we're tapping phone lines, I know that that ain't allowed.
---------:---------:---------:---------:---------:---------:---------:----
Timothy C. May              | Crypto Anarchy: encryption, digital money,
tcmay@got.net  408-728-0152 | anonymous networks, digital pseudonyms, zero
W.A.S.T.E.: Corralitos, CA  | knowledge, reputations, information markets,
Higher Power: 2^1398269     | black markets, collapse of governments.
"National borders aren't even speed bumps on the information superhighway."