[cryptography] Digital cash in the news...

James A. Donald jamesd at echeque.com
Sun Jun 12 22:56:08 EDT 2011

On 2011-06-12 8:57 AM, Ian G wrote:
> I wrote a paper about John Levine's observation of low knowledge, way
> back in 2000, called "Financial Cryptography in 7 Layers." The sort of
> unstated thesis of this paper was that in order to understand this area
> you had to become very multi-discipline, you had to understand up to 7
> general areas. And that made it very hard, because most of the digital
> cash startups lacked some of the disciplines.

One of the layers you mention is accounting.  Recall that in 2005 
November, it became widely known that toxic assets were toxic.

 From late in 2005 to late in 2007, it was widely known that major 
financial institutions were walking dead, and yet strangely they 
continued to walk, though this took increasingly creative changes of the 

Today in 2011, there is still no audit that acknowledges that toxic 
assets were and are toxic.

While doubtless a good monetary system should embrace all these aspects 
of knowledge, our existing monetary system does not.

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