Re: distinctive properties of ecash, netbill, cybercash and iKP
Sat, 11 May 1996, Jon Moore wrote:
Bert-Jan said:
=B7 Monetary value: it must be backed by either cash (currency), bank authorized credit, or a bank-certified cashier's check, so that it is easily accepted by others.
The banks/cash-issuing corporations are likely to support anything that is secure enough, and looks like a runner, because any e-money scheme is profitable to them (they earn interest on the corresponding real cash while the e-money is in circulation).
This is one question why the central bank in Estonia (I am not sure about other countries) does not allow issuing e-cash here in Estonia. While the banks issue e-cash to people, they get some real cash from people. This leads to actually doubleing the money in circulation, each monetary unit, either dollar or kroon, can at the same time be used by owner of e-cash and at the same time by the bank. The central banks are afraid that when the amount of e-cash in circulation gets big, this could lead to devalvation of money, especially a small country like Estonia is afraid of such development. Anonymity of monetary transactions is another thing that Bank of Estonia has declared illegal. Juri Kaljundi jk@stallion.ee AS Stallion
-----BEGIN PGP SIGNED MESSAGE----- In article <Pine.GSO.3.93.960511163200.17967B-100000@happyman>, =?ISO-8859-1?Q?J=FCri_Kaljundi?= <jk@stallion.ee> wrote:
Sat, 11 May 1996, Jon Moore wrote:
The banks/cash-issuing corporations are likely to support anything that is secure enough, and looks like a runner, because any e-money scheme is profitable to them (they earn interest on the corresponding real cash while the e-money is in circulation).
This is one question why the central bank in Estonia (I am not sure about other countries) does not allow issuing e-cash here in Estonia. While the banks issue e-cash to people, they get some real cash from people. This leads to actually doubleing the money in circulation, each monetary unit, either dollar or kroon, can at the same time be used by owner of e-cash and at the same time by the bank. The central banks are afraid that when the amount of e-cash in circulation gets big, this could lead to devalvation of money, especially a small country like Estonia is afraid of such development.
Good heavens! Are checking accounts illegal in Estonia, then? The exact same argument applies to them.
Anonymity of monetary transactions is another thing that Bank of Estonia has declared illegal.
Cash is illegal, too! How does the economy in Estonia work these days? Barter? - -- Alan Bostick | "The thing is, I've got rhythm but I don't have mailto:abostick@netcom.com | music, so I guess I could ask for a few more news:alt.grelb | things." (overheard) http://www.alumni.caltech.edu/~abostick -----BEGIN PGP SIGNATURE----- Version: 2.6.2 iQB1AwUBMZTKJ+VevBgtmhnpAQHHpQMAmpLtHIXNIHSxBnAtZMz2mlVoI7i+765r i9Cv6J0TA3OWd1LqFnrOSlpL9SIjAAxn0bwSZFERwfzetyIxya5ctyWRUOjbQtI3 ApL5XhskucNEq9Z5cWl0wQRwptivCCLl =rvLb -----END PGP SIGNATURE-----
abostick@netcom.com (Alan Bostick) writes:
This is one question why the central bank in Estonia (I am not sure about other countries) does not allow issuing e-cash here in Estonia. While the banks issue e-cash to people, they get some real cash from people. This leads to actually doubleing the money in circulation, each monetary unit, either dollar or kroon, can at the same time be used by owner of e-cash and at the same time by the bank. The central banks are afraid that when the amount of e-cash in circulation gets big, this could lead to devalvation of money, especially a small country like Estonia is afraid of such development.
Good heavens! Are checking accounts illegal in Estonia, then? The exact same argument applies to them.
Well, checking accounts and travellers checks are all part of the M1 money supply. :-) --- Dr. Dimitri Vulis Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps
participants (3)
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abostick＠netcom.com -
dlv＠bwalk.dm.com -
Jüri Kaljundi