ecash, cut & choose and private credentials (Re: Jim Bell)

[James A. Donald]

     --
Adam Back wrote:
 > > > I think the thing that killed MT / digicash for this application
 > > > was MT at the time was reported to be closing accounts related
 > > > to pornography -- they apparently didn't want the reputation for
 > > > providing payment mechanisms for the porn industry or something.

James Donald replied:
 > > Payee traceability made it possible to close accounts related to
 > > pornography.   Ecash is not truly cash like if the issuer can
 > > prevent it from being used by tax evaders, child pornographers,
 > > money launderers and terrorists.

Anonymous wrote:
 > Payee traceability had nothing to do with it.  Every customer of
 > MTB, whether an end user or a merchant, had to fully identify
 > himself to the bank, including SSN and for merchants, type of
 > business, etc.  This is SOP for other payment systems like credit
 > cards.

Ecash is not supposed to be like credit cards.

Had the coins been cashlike, joe pornographer could have sold them under 
the table to the flying nun, who would then cash them in her very 
respectable account, and pay Joe pornographer under the table.

 > It was on this basis that MTB was able to screen their merchants. No
 > payee tracing was necessary.  A fully untraceable cash system would
 > have been equally amenable to merchant screening.  Any vendor has
 > the right to control whom it does business with, and MTB chose to
 > exercise its discretion in this way.

Payee traceability made it possible for the vendor to control who used his 
ecash.  With truly untraceable cash, the vendor can no more control who 
uses his coins than can an issuer of physical coins.

     --digsig
          James A. Donald
      6YeGpsZR+nOTh/cGwvITnSR3TdzclVpR0+pr3YYQdkG
      1888xf3dGOa7E0/VKdf5i8BViiT/hrOp51IW5PzN
      4SxTFltcoKTQc4eFab8ZoF0byDe9qzXOqtQUqYWwc