Digicash and capital adequacy

[Simon Spero <ses@tipper.oit.unc.edu>]

This came out of a corridor discussion yesterday as to how digicash 
would affect future banking systems:

How does digicash interact with capital adequacy requirements? Should each
digi-dollar issued require a corresponding hunk'o'assets in the customers 
account, or should the bank be able to issue digicash using existing 
rules? Digicash can have a much faster velocity than real cash, so I can 
sort of imagine their being periods where adequacy limits could be exceeded.

What's the panels view?

Simon
 p.s.
    I got to see the movie "Hackers" while I was sick in bed after WWW 
    IV. The movie was pretty bogus, but the soundtrack was pretty 
    cool. The wonderful movie website had nothing about any soundtrack 
    albums; anyone know if there was one?