It seems the former Office of Technology Assessment, now called the Institute for Technology Assessment (Go, Newt!), had a need for a horseman on their law-enforcement panel tomorrow. Anyone know where I can get a riding crop? :-). I'm scheduled, anyway. I'm in Cupertino at the moment (the Mac-Crypto conference was, er, insanely great; more on that later), and I haven't received the plane tickets yet (Bob Hettinga: You Buy, I Fly), though they're supposed to show up today. We'll see when I get home tonight. Oh. Any former Pac-Man addicts remember the name of the ghosts? I think there were four, right? Cheers, Bob Hettinga ----------------- The Institute For Technology Assessment ITA INSTITUTE FOR TECHNOLOGY ASSESSMENT WORKSHOP DIGITAL MONEY AND PUBLIC POLICY SEPTEMBER 10, 1996 US House of Representatives, Cannon Office Building, Room 121 A Workshop on Public Policy and New Technology: "Digital Money" is a rapidly evolving financial/communications technology. It is important that government, industry, and the public fully understand the unique characteristics and potential benefits and costs of this radically new technology, so that benefits may be fully realized and costs avoided through early, judicious attention to public policy issues and concerns. This workshop brings together the stakeholders and interested parties -including the public and their government representatives-to consider the issues that may be posed by this emerging technology. In this workshop, attention will be focused on three questions: What issues need to be resolved now if development of digital money is to proceed with minimal social costs and institutional risks? Where is there general agreement about needed actions, or about reasonable solutions to recognized problems? Where are there true uncertainties that must be monitored, solved empirically, or objectively researched? The workshop will consist of three sessions. Each will begin with invited presentations, followed by open discussion among presenters and participants. Moderator: Dr. Wayne Boucher of Strategic Futures International 10 a.m. Greetings and Introductions Keynote Address: The Honorable Michael Castle Chairman, Subcommittee on Domestic and International Monetary Policy House Committee on Banking and Financial Services 10:30 a.m. Session I : Digital Money Systems, Today and Tomorrow - Industry Perspectives Who are the players in developing digital money -and what new players will emerge? What are the potential benefits -and costs-for banks, credit card companies, telecom companies, software vendors, or others? What has been learned from early pilot systems? What are the relative advantages-and risks-of smart cards vs. network-based systems? What older payment systems lose ground to electronic money and smart cards? Is the playing field level with respect to regulation and legislation? Specific issues that may be raised include questions about state licensing, Bank Secrecy Act coverage and financial privacy, protocols for payments of different sizes, clearinghouses, and multiple mints. PRESENTERS: Roger Applewhite, Benton International, Inc., Torrance, California William Barr, Bellcore, Basking Ridge, N.J. Electronic Funds Transfer Association, Reston, Virginia Kawika Daguio, American Bankers Association, Washington, D.C. 12:30 p.m. Buffet lunch 1:15 p.m. Session II. Government's Role in the Development of Digital Money How may existing laws and regulations impede the development of digital money? Does the possibility of future regulations or restrictions threaten to drive development in sub-optimal directions? Do banks or other potential developers need firmer assurances about regulatory intentions? Does existing legislation and regulation adequately protect property and contract rights with regard to digital money? What might be the effect of European data protection initiatives, and what steps can the US government take to circumvent international friction over this issue? What are the major risks imposed by digital money, including risks of devaluation of US currency? Could private insurance buttress against network failure, electronic runs on money, or other sources of catastrophic risk? To what extent could a failure in digital money systems contaminate or threaten the traditional banking system, or the integrity of traditional money systems? Who will set standards with respect to risk management and capital adequacy of clearing systems? Should smart cards and small internet transactions be exempt from Regulation E and EFTA protections against consumer liability? Would -or should Representative Markey's On-line Privacy Bill cover digital money transactions? Would non-bank digital money mints be covered by the Right to Financial Privacy Act of 1978 and the Electronic Communications Act of 1986? Which party would bear the risk of loss in case of hard-disk crashes, counterfeiting, network failure, etc.? PRESENTERS: Melanie Fein, Arnold & Porter, Washington, D.C. L. Richard Fisher, Morrison & Foerster, Washington, D.C. Professor Sarah Jane Hughes, Indiana University Law School 2:45 p.m. Session III: Law Enforcement Issues Will anonymous instantaneous digital money create the possibility of new crimes, or new versions of old crimes -theft, money laundering, insider trading, etc.? How would the flow of invisible, non-traceable money affect law enforcement and the administration of justice? Do benefits of encryption outweigh the possible harm to law enforcement capabilities? Does digital money threaten the new focus of law enforcement on seizing the proceeds of criminal enterprises? Considering the lessor of the Digital Telephony Act, can early cooperation between digital money providers and law enforcement avoid the heavy costs of retrofitting systems to accommodate the needs of law enforcement? What is the appropriate role of government in assuring the security of digital money systems against breaches by insiders, or criminals, or terrorists? To what extent would digital money threaten the ability of the IRS to collect taxes or to prosecute tax dodgers? PRESENTERS: Roger Weiner, Deputy Director, FinCEN, U.S. Department of the Treasury Scott Charney, Chief, Computer Crimes Section, U.S. Department of Justice Robert Hettinga, Boston, MA 4:00 p.m. Adjournment Conference Organizers Steven Bonorris, Vary Coates (ITA) 202 686 0693 ----------------- Robert Hettinga (rah@shipwright.com) e$, 44 Farquhar Street, Boston, MA 02131 USA "'Bart Bucks' are not legal tender." -- Punishment, 100 times on a chalkboard, for Bart Simpson The e$ Home Page: http://www.vmeng.com/rah/