TO: >internet: cypherpunks@toad.com Forgive me for a newbie question. Why wouldn't the following inelegant idea work? X gives $101 to First Digital Bank, which gives X a PGP-signed password representing a claim on $100 (or maybe they would do this just for the "float"). X gives the $100 password to Y, in exchange for a narco-terrorism decoder ring. Y, being a cautious soul, calls First DigiBank immediately and gives it the password. DigiBank pockets $1 and issues Y a new signed password good for $99. Note that DigiBank (1) doesn't need to know who Y is and (2) ensures that a given money-password is only spent once. By the same method, Y can pay Z and Z can deposit the credit in BillnHill's S&L for settlement. Or the money can keep floating around until DigiBank gets it all, which is what usually happens now ;-) Of course, you have to trust the bank - but you have to now, also. Don't abuse me too much. Just point me to the right FAQ (...cowering...) bdolan@well.sf.ca.us