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re:backing



>workable barter currency?

Aug/Sept 93 Mother Earth News has an article "The Ultimate Barter" about
"A currency based on time-hours is a boon to a rural community."

>poorly-backed digital currency will win out over e.g. U.S. dollars?

Depends on legal tender status (see post by Perry).  Note too his
point that digital currency needn't be poorly backed.  However, also note
that government issued dollars would circulate in preference to gold
backed digital currency issued by someone else according to Greshams 
law (which was stated in reference to metal coins, but applies to
other forms as well).

Solution might be to denominate digital currency in something other
than $ (e.g. gold grams) & have parallel monetary system develop.