Helping you make sense of going Cashless | Best-selling author of "Cashless" and "Innovation Lab Excellence" | Consultant | Speaker | Top media source on China's CBDC, the digital yuan | China AI and tech
💥BOOM! The ECASH Act is BRILLIANT and has my full support by providing an anonymous cash equivalent that is intended to “compliment CBDCs.”💥 E-Cash is not a CBDC! The difference is that E-Cash is a digital token that has no central ledger or digital history as it is passed from user to user, just like cash. It is designed for offline transactions and can be used on a payment card (note the picture of the e-CNY card on page 6) or cell phone. E-Cash characteristics: 1️⃣ Legal tender 2️⃣ A bearer instrument used by the general public via secured hardware devices. 3️⃣ Capable of instantaneous, final, direct, peer-to-peer, offline transactions. 4️⃣ Does not involve or require subsequent or final settlement on or via a common or distributed ledger, approval, or validation by the US Gov’t or any other third-party payments processing intermediary. (No blockchain!) 5️⃣ Subject to a per-device denominational or transaction cap, similar to physical currency caps today. 6️⃣ Regulated in a manner similar to physical currency for anti-money laundering, know-your-customer, counter-terrorism, and transaction reporting laws. (No KYC/AML!) 7️⃣ Prohibits the U.S. government and counterparties from collecting, monitoring, or retaining data from E-Cash transactions (Strong enough?) Look closely at point 4 . Unlike a CBDC which requires verification on gov’t run systems, E-Cash is fully unconnected and independent. It relies on hardware wallets to validate a token and make offline cash transfers. This is almost exactly what China’s e-CNY hardware wallets do when used in offline mode. They have sufficient processing power to cryptographically validate coins offline to prevent double-spending and are subject to transaction caps. I love E-Cash and think that it would be a compliment to CBDC. Use E-Cash for small amounts and above the transaction cap use CBDC! This is China's model almost exactly! Imagine an E-Cash wallet with a limit of $10,000 and max transaction size of $2000. This would give most of us sufficient levels of anonymity and privacy. Above these amounts, we could use CBDC which would give gov’t the AML and KYC it demands. ❓Will this fly❓ 🔥 No chance! 🔥 Imagine this: I have 5 E-Cash cards each charged up to a hypothetical $10,000 limit. I could just hand them to you and you would have $50k in a tiny package. Drug smugglers would love it! Compromises on caps are possible but tech workarounds would likely try to tie a card to a user which defeats anonymity. Still, I think that this Act and E-Cash require serious consideration. It shows that anonymous digital cash is possible. The ECASH Act makes an important contribution to digital payment privacy and I support it. It may help us all go Cashless! Thoughts? PS: Did you know the LinkedIn algorithm weighs a 5-word comment equal to 10 likes? Please leave a comment and connect for more on #China's #CBDC, #fintech, #technology, #innovation and my book #CashlessChina
Was wondering in India UPI digital wallets are widely used for day to day transactions. Trying to understand how e-Cash will add value in India?
??? As we innovate, stuff is supposed to get better - not got backwards. You lose your phone, you lose your Ecash. Your phone falls in the toilet, you lose your Ecash. This will be used by criminals and drug dealers given it will be fully anonymous. The technology better be completely hack proof too - otherwise criminals are stealing phones to hack and transfer the Ecash to their phones.
Hmmm. "Legal tender [...] not included in calculations of public debt subject to limit under debt ceiling". One more way to print more US dollars without officially incerasing debt? 😋 I can imagine paying governmental workers in "hardware devices with e-cash on them" instead of checks and thus bypasssing debt ceiling. Richard Turrin, you surely studied this docoment more miticulously tha me, so please correct me if I am wrong. - for standard cash (coin and bills) it is still FED in charge how much money can US Treasury print and mint, but for e-cash it is outside of FED 'powers'?
Sorry Richard, not buying it!. On a transactional perspective validation is passed through a government organisation. If that's not a third eye 👀 then what is it?. I may be wrong but please correct me in the validation aspect. I,ll read through the whole article, but in principle from what I,ve read, it doesn't guarantee a certain level of non biased checks unlike a distributed ledger would do. I still love the technology, and seems to go like CBDC in the right direction to tackle corruption, black money so on and so for.
One needs to look at it in closer detail but it looks promising.
In a way, if ECASH was endorsed, the privately issued USD backed stablecoins would benefit. The US would pass legislation to allow only licensed issuers....
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US Naval Research Laboratory
2yECash is not the same as digital cash Fed Res notes. They are digital coins created by the Treasury not the Fed. This is glossed over in the discussion. There is nothing I can see preventing the Treasury from providing eCash cards to agencies, not funded by borrowing or taxation, for purchases. Grey has been a proponent of the Platinum coin and this is his way to introduce real government money creation. Pretty sneaky.