`Minting' electronic cash

Electronic equivalents of traditional cash payment systems are being launched worldwide. Electronic cash can combine the benefits of traditional cash with those of payment by debit and credit card, while circumventing both their shortcomings. As with traditional cash, electronic cash should have high acceptability and be suitable for low value payment from person to person. With the possible exception of online payment platforms such as the Internet, it is preferred that payments be verifiable offline, without the bank's involvement, for reasons of cost effectiveness and speed. To facilitate electronic cash payments over the phone and the Internet, physical proximity of payer and payee should not be necessary. Moreover, electronic cash should offer privacy of payments. In particular, payments by an honest payer should be untraceable, and information about transaction content should remain privy to payer and payee. Yet a payer ought to always be able to trace the payee; traceability suits electronic cash and is as open to extortion, money laundering, and bribery as a check or wire transfer. Lastly, as with payments by debit and credit card, electronic cash should be convenient to store and transport, while protecting users against loss, theft, and accidental destruction