Re: July Freedom Forum Meeting

[The Deviant <deviant@pooh-corner.com>]

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On Tue, 9 Jul 1996, Robert Hettinga wrote:

> Date: Tue, 9 Jul 1996 19:04:46 -0400
> From: Robert Hettinga <rah@shipwright.com>
> To: dcsb@ai.mit.edu
> Cc: cypherpunks@toad.com
> Subject: July Freedom Forum Meeting
> 

[stuff rm'd]

> Banks have been doing "electronic funds transfers" for years, and now 
> ATM transactions have skyrocketed, due to their convenience.  What 
> happens when you can take complete control by saving your e-money right 
> in your own personal computer's hard drive?  Will there be competing 
> e-currencies?  Will transactions become invisible?  The internet and new 
> encryption techniques make the possibilities absolutely enthralling.

this SHOULD never happen, for the same reason that money cards (the one's
with the chip embedded in the plastic) should never happen.

I'll use the card as an example of why not...

ok, say I DID get a money card... here's the process that makes the
encryption, and/or any other security, useless.

1) get a bank loan, and transfer the $$ onto the card.. lets say
$100,000...

2) copy the chip.

3) now go cash both at seperate ATM machines, the same day.

4) pay off your loan. (you decided you didn't NEED a house after all)

5) move to switzerland, because this is VERY tracable.

you now have $100,000 CASH, and a small paper trail. No cryptanalisys
required.

Of course, this would require some equipment, but anybody who can afford
the equipment, with, say a small loan, can pay back their loan that day,
and still have a bit of spending cash.

 --Deviant



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