From: IN%"weidai@eskimo.com" "Wei Dai" 7-APR-1996 10:52:52.30

I think you're right. There is no need for the issuer to pay explicit interest. The easiest way to eliminate signorage would be to steadily increase the value of each denomination of ecash. It would be kind of like a mutual fund that doesn't pay dividends. In fact, if the ecash is backed by a portfolio of investment securities and its value floats with the value of the portfolio, then it would be almost exactly like a mutual fund.

Another method would be for ecash to have a label on it as to when the issuer would redeem it. Until then, if you want cash from it, find someone else to trade to. This has the interest advantage for the purchaser, and the advantage to the issuer that they won't have to worry about when someone will redeem it. They'll know that they'll need to have a particular amount on a particular date, and their earnings/losses up until that point can vary all over the place without being worried about whether they can make their payments. Ideal for a startup business. -Allen