In Search of Genuine DigiCash

[hughes@ah.com (Eric Hughes)]

   >In an off-line system, is the cash really cleared immediately?

   Clearing in this case is when the cash passes from you to me.

This is a pretty non-standard usage of the word "clearing", which
happens when the issuer accepts the instrument for deposit.
Settlement happens when money actually moves.

The significant activity that happens at clearing is a liability
acknowledgement by the issuer.  This acknowledgement makes clear that
the issuer has a liability.  If the issuer clears but does not settle,
i.e.  accepts the liability but does not act upon it, the depositor
can use the clearing as a claim against the issuer.  (N.B. Here
'claim' is used in its strict legal meaning as the opposite of a
'defense'.)

Eric