Re: Virtual Cash

[Eli Brandt <ebrandt@jarthur.cs.hmc.edu>]

> 	Money has value because we agree it has value.  As long as
> noone is willing to give me a meal, a nights lodging, or 30 minutes
> CPU time for some number of tacky tokens, they will be just that;

The simple model: I offer to accept U.S. dollars and hand out tokens
at a one-for-one rate.  I also promise to redeem them at the same
rate.

Unfortunately, nobody would trust me, and they'd be smart not to.
I'm not an established financial institution.  Not only might I
abscond with the money, I don't have the financial reserves to
cover redemptions and still make money on a no-fees system.  And
I don't know the laws involved, so you might lose out when I get
hauled off to jail.

Poll: assuming you had a use for FedNote-backed 100%-reserve digicash, 
what service fee would you be willing to pay, and how much money
would you be willing to leave in the hands of some random individual?

   Eli   ebrandt@hmc.edu