C'punks, On Wed, 16 Mar 1994, Hal wrote:
. . . If you want to invest in gold, you can go down to the coin store and buy some, right? Or you can put your money into a gold-investing mutual fund and use it as a checking account. If you want yen, or marks, you can invest in those.
If the point is to do so secretly, why is it easier to mail your paycheck to the digicash bank in the Bahamas than to mail it to an existing bank there?
. . .
If avoiding taxes is the major goal, my problem is that by far the bulk of my taxes are withheld from my paycheck. I know, Sandy or Duncan said, "What? You still have a paycheck?" but let's face it, most people do.
Are you so sure about this? Yes, most people receive some of their income in a paycheck. Be advised, though, the underground economy is vigorous and robust. Are their any mechanics out there who *don't* do auto repair on the side? Accountants? Plumbers? Programmers? I also find it hard to believe most waiters and waitresses are reporting their tips. I'm sure we could extend this list for hours. Digital cash transactions could easily surpass above ground transfers. Not everyone nor every dollar needs to go via digital channels to (a) make a digital bank successful or (b) put a major crimp in the ability to finance government.
It seems to me that the weak point in these bypass-the-government digicash schemes is the conversion between paper cash and digital cash. That looks like the choke point where the government can still keep control.
Don't be so sure, Hal. There are, and will be, plenty of financial transaction that will never, or rarely, need to convert to or from cash. When they do, well, that's what ATMs are for. S a n d y