abostick@netcom.com (Alan Bostick) writes:
This is one question why the central bank in Estonia (I am not sure about other countries) does not allow issuing e-cash here in Estonia. While the banks issue e-cash to people, they get some real cash from people. This leads to actually doubleing the money in circulation, each monetary unit, either dollar or kroon, can at the same time be used by owner of e-cash and at the same time by the bank. The central banks are afraid that when the amount of e-cash in circulation gets big, this could lead to devalvation of money, especially a small country like Estonia is afraid of such development.
Good heavens! Are checking accounts illegal in Estonia, then? The exact same argument applies to them.
Well, checking accounts and travellers checks are all part of the M1 money supply. :-) --- Dr. Dimitri Vulis Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps