RE: What backs up digital money?

>From: 	Perry E. Metzger
>
>Alan Horowitz writes:
>> I will put forth the proposition that Federal Reserve "Notes" are not 
>> notes.
>
>Probably true, but not relevant here on cypherpunks.
......................................................................

Perry, here's a question for you, and I am seriously interested in your
answer:

I agree that discussing the past history of money in relation to whether
the Federal Reserve should exist, or has the authority to issue "Notes",
and whether the Notes are actually worth anything, is too involved and
political and complex a discussion to pursue on this list.

But since electronic cash does involve encryption, and since this does
have social/political repercussions for the future of mankind, and since
the list does involve itself with an acute awareness of what this means
for life, liberty, and the pursuit of international wealth,

and since you know a lot about the place of free banking and currency in
the world economy (not to mention the Peruvian economy  <g>), 

and since it is a valuable exercise therefore to examine the logical,
valid perspective that one should have on this matter in order that one
be correct, rather than mistaken, on just how a fluid medium like
electronic currency could exist within this new cyber-world order while
not yet losing the attributes which have made it acceptable in the past,

what, then, would you yourself consider proper for discussion here?  A
brief outline would be sufficient, to create a context to keep in mind,
within which to contain & limit discussion, as we ponder the subject. 
Perhaps something which could be re-sent when newbies bring up the
question again.

Thanks.
   ..
>Blanc
>

Blanc Weber writes:
> Perry, here's a question for you, and I am seriously interested in your
> answer:
[...]
> what, then, would you yourself consider proper for discussion here?
> [in the context of digital cash discussion]

I'd say that anything directly dealing with digital cash, its
implications, deployment, and technical issues associated with
it. General discussions of whether the Federal Reserve is a bunch of
evil old men and the like are what are out of bounds.

This means:

"How does blinding work"

and 

"Do you think that digital cash systems will hurt bank regulatory
supervision"

are fine things to talk about but

"Do you think the Federal Reserve issues counterfeit money"

are not.

Perry