ADICO: Anarchist FDIC#000#
When someone objects to free banking (in gold, for example) on
the grounds that unregulated banks will have fractional reserves
and have no incentive to stay honest, perhaps describing an
Anarchist Deposit Insurance COmpany (ADICO) will ease their fears.
A new or relatively obscure offshore bank would gain the trust of
potential depositors by agreeing to cooperate with surprise
inspections of their gold supply. Depositors would pay a small
premium to cover loss from bank failures due to theft or fraud.
Cryptographic protocols would need to be developed to allow the
ADICO to see a verified total amount on deposit, without revealing
anything about any particular depositor. The total should match
the physical amount of gold in storage, assuming 100% reserves.
Does anybody know of work on this, or think it is worth researching?
Kent -