hughes@ah.com (Eric Hughes) said:

If the value transferred is liquid, and the payment is made upon demand, then, in fact, you are a bank, regardless of what else you might call yourself. This is the case in the USA.

Ok, so gtoal, and my idea for multiple MM IOU servers need to fail at least one test, if not both. I will assume that 'pay on demand' means the payer must pay at the moment the note holder requests payment. So, supose the owner of the IOU server were to accept payment requests electronicaly, but then mail the payment a week later. Or perhaps deliver it in person at the next local CP meeting (but only if given at least 1 weeks notice). Is this enough to dodge 'demand'? I will assume that 'liquid' means 'readily convertible into cash'. So to avoid being 'liquid' perhaps the payments could be made in physical IOU's, personal checks, travelers checks, money orders, phone calling cards, or gift certificates. None is nearly as 'readily convertable into cash' as cash is. But perhaps there are other instruments which could be used. Alternatively, the value could be delivered in the form of some comodity, such as Rice, Corn, Diet Coke, or Sow Bellies. Naturally there still remain the issues of patents. Cat Shoe