17 Dec
2003
17 Dec
'03
11:17 p.m.
From: Alex Strasheim <alex@omaha.com> Suppose Digicash opened up a digital currency exchange in Amsterdam. [...] Left unexamined here are the ways in which various things can go wrong. Edollars would still have value here in Lincoln, NE USA. How much? Not full value, that's for sure, because of the risk cost associated with getting the edollars back to Amsterdam. What happens when womthing goes wrong in Amsterdam? What happens? What effective recourse does a USA holder have with respect to a Netherlands company? Your basic idea, however, is right on target, that you don't need to be a bank to issue digital currency. On the other hand, with that realization your problems are only beginning. Eric