The advantage is that its electronic AND that its secure. Since its secure, the intermediation costs drop dramatically as the possibility of fraud goes down. But it is also possible to make systems that are secure and non-anonymous. Admittedly, I spoke of "identity-based systems", which is not quite right. Rather I should have said "identifying systems", which include the identity but do not rely upon it alone to verify payment, as do credit cards, say. These kinds of systems can be just as secure and completely lack anonymity. To pick just one, consider certified digital checks. The drawer writes a check, the bank certifies it (and puts a hold on the account), the check is transmitted and deposited. Secure, low level, and totally identifying. One could do electronic payments with credit cards and email right now -- but the costs would be pretty bad. I agree. There's an interesting parallel. As it turns out, credit card fraud is _dropping_, because of various educational programs and anti-fraud measures. The one segment that credit card fraud is increasing is in technical card forgery, which is way up. Transmitting card numbers electronically over the Internet can only exacerbate that problem. Eric