At 5:41 PM 8/6/94 -0700, Eric Hughes wrote:
The obstacles are certainly not for electronic money, which the Fed's been using for some time now, but rather for electronic cash, which includes anonymity.
We've chased each other around a tree like this one before... Let's see what the differences are this time. I've been doing some thinking about this... Anonymity can come out of retail settlement of e$, if the transactions aren't tracked. We've talked here before about how you think that the tracking of those transactions at the retail level is pretty trivial, so the cost to the user of traceable e$ may be meaningless. I'm not so sure that that's the case, and I think (I hope!) I remember Perry agreeing with me on that point. But if we fiat the argument just to see where it takes us, we come to the sheer volume of transaction records themselves. Is it possible to accurately estimate the cash transaction load of an economy? I bet that if we could, you'd see that the data from each transaction would cause the problem news servers have by several orders of magnitude. The information would get dumped pretty frequently. This is probably the same problem the NSA has now picking out signals to listen in on, but running down an audit trail is different, it's a historical process. Since you don't know whose transactions you need, you need to keep them all. True, this doesn't keep TLAs from trying trying to drink from a firehose, or more to the point, to free-dive to the bottom of the Marianas Trench (if they could keep all of the data), or high-dive into a wading pool (if they couldn't). Hmmm...
The USA provides a fair amount of financial privacy to everyone but the government, particularly law enforcement. So the _business_ case for privacy is largely felt to be already satisfied by the regulators.
When *every* business transaction can be scrutinized (as much as physically possible, per above) at any time, for any reason the government deems necessary, it makes a sizable business case *for* traceable electronic cash. This is probably the place to put the lever on the business community.
The Treasury department, among others, really _doesn't_ want non-recorded transactions. Unless the banking community as a united front _does_, I don't think it will happen domestically (USA) before other deployments. If there's not a united front, it'll be divide and conquer.
Non-recorded transactions exist already. It's keeping them from dissapearing that we're really talking about here. It's quite possible to get banks to present a united front. They have one of the largest lobbies in Washington. They have fought reporting requirements tooth and nail with some considerable success, but every time they get greedy (S&Ls) the noose tightens. It might be the threat of international deployment and regulatory arbitrage which brings them around, and fires up the lobbying apparatus on our side of the issue. It has worked before (gold, et.al.). On the other hand if those reporting requirements are frictionless, they don't *need* to fight it, do they... It's time to leave the ring. Somebody tag me. My brain hurts... Now to plug the topic of the thread a bit, how receptive would people in the crypto community be to participating in an annual dog&pony/schmoozefest for the suits? Who should chair the morning "primer" session? *E-mail* me with your ideas, everyone. Thanks, Robert Hettinga ----------------- Robert Hettinga (rah@shipwright.com) "There is no difference between someone Shipwright Development Corporation who eats too little and sees Heaven and 44 Farquhar Street someone who drinks too much and sees Boston, MA 02331 USA snakes." -- Bertrand Russell (617) 323-7923