From: John Young <jya@pipeline.com>
Date: Wed, 12 Nov 1997 10:14:58 +0800
To: cypherpunks@toad.com
Subject: FRB Crypto Systems
Message-ID: <1.5.4.32.19971112020047.00a4d1e0@pop.pipeline.com>
MIME-Version: 1.0
Content-Type: text/plain



Federal Register, November 10, 1997

Excerpt from a Federal Reserve Bank announcement:

      ... the Reserve Banks plan to change their policy 
for ownership of the encryption boards used by depository 
institutions with dial and multi-drop connections. These 
encryption boards are currently purchased and owned by the 
depository institutions. With the replacement of the 
encryption boards beginning in the second half of 1998 to 
enhance the security of the Federal Reserve's communications 
network, the Reserve Banks plan to purchase and assume 
ownership of these boards. This approach is consistent with 
Reserve Bank ownership of other equipment at depository 
institutions that is required for electronic connections to 
the Federal Reserve, specifically link encryptors and 
signaling equipment. Reserve Bank ownership should improve 
management of the security of the network and facilitate the 
implementation of an all-electronic key distribution system. 
This change in policy may affect future-year electronic 
connection fees, as priced services must recover depreciation 
costs associated with the new encryption boards.

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Are these systems related to Kawika Daguio's comments on
PCCIP forwarded by Declan yesterday? Anyone have more
detailed info on the boards and link encryptors?