[109424] in Cypherpunks
None
daemon@ATHENA.MIT.EDU (BPM Mixmaster Remailer)
Tue Mar 23 21:25:40 1999
Date: Tue, 23 Mar 1999 17:40:02 -0800 (PST)
To: cypherpunks@toad.com
From: BPM Mixmaster Remailer <remailer@bpm.ai>
Reply-To: BPM Mixmaster Remailer <remailer@bpm.ai>
John Young added a fairly readable paper
J. Orlin Grabbe's Smart Cards and Private Currencies
http://jya.com/scpc.htm
which explains some fairly profound
economic concepts, include the notion of
competition between currencies
(on the basis of their inflation rates, for instance).
There's an explanation of payment types and their compatibility with
electronic payment types. Also a fascinating section on US law and
its burdens on micropayment systems and anonymity.
And a review of the tech.
But there's some physics-surpasses-politics, which
reminds one of that fine futurist speculation, Bell's
Assasination Politics.
And there's a line, "The objective of a good electronic money system is to put
FinCEN and similar government financial information collectors
out of business." which reminds of the CP soundbite,
"putting the NSA out of business". Perhaps t-shirt material
for the ecashpunk crowd: "ECash: putting FinCEN out of business."
in green on black?
excerpts:
....
Smart cards have a natural role to play in eliminating government monopoly over currency issue. (I include among government
monopolies the curious case of the U.S. Federal Reserve, which is privately chartered, but which acts as a government handmaiden.)
Smart cards will assist in the development of private currencies to compete with, if not replace, today’s prevalent types of monopoly
money.
....
The bulk of the funds obtained by issuing e-money, of course, is used to buy interest-bearing assets. The interest earned from these
assets is the e-money issuer’s profit once expenses have been covered.
.....
But more is needed. Much, much more. The whole objective is to denationalize money, to decentralize it, to put it beyond the control
of regulatory authorities who operate to maintain a government or central banking monopoly, to create mobile network banks that do
not become sitting targets for Big Brother information collectors, to distribute private currency operations in such a way that they can
be said to exist in no single political or legal jurisdiction—or for that matter cannot be said to exist in any jurisdiction. Electronic
monetary transactions will take place out there, somewhere in cyberspace, unobserved by third parties. The intent is to deliver an
honest service at an honest price, and to give the user of the system complete privacy.
......
Gold coins are a great thing—at a minimum they represent an alternative competing currency all by themselves. But they don’t help
much in effecting transactions at a distance or in minimizing transactions costs. The gold market itself is organized electronically. [17]
And the gold standard? Forget it: the objective is to get the government out of the process. And if you argue that government is not
necessary for a gold standard, then quit bitching and create one privately. That’s what private currencies are all about: if you have a
better idea, then implement it and sell it to others.
Private currencies are on their way. And smart cards are an important part of that process.
-----------
...I'll get you, and that stupid little dog of yours too...
