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Re: distinctive properties of ecash, netbill, cybercash and iKP



[email protected] (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. :-)

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<a href="mailto:[email protected]">Dr. Dimitri Vulis</a>
Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps