Many claim that the Internet is not a safe place to do business - not true.

Cash are tokens that can be authenticated independently of the user. Cheques require reference to user. Card channels payment through existing card payment systems.

We don’t necessarily need a single system, the “real” financial world has multiple, complementary ones. Transactions are already available on the web. The problem is not technology, but achieving critical mass despite legal and political obstacles. Not clear that it will work very well in the foreseeable future.

Credit card companies and banks are exploring the field, including making various announcements, but the fact is that an intereconomy is a huge threat to their livelyhood. Their payment systems are exepensive, with a large overhead per transaction, and preferably linked with expensive (and very profitable) credit. An internet economy with very low transaction overhead would be a significant threat..

International transactions is a big profit source for banks. Digital cash and similar technologies could eliminate this completely. It would also open up completely the market for financial services, such as loans and fund managements. Already small financial institutes are beginning to look at the Internet as a way to reach a mass market without a branch in every town.

Personally, I use First Virtual to make donations, and Netscape “secure” protocols to purchase with credit card, including things like hard disks, SIMMs, etc. First Virtual’s method is particularly neat, relying on the Internet’s size for protection, and using telephone keypad to update credit card information.

In fact, the way I got the rights to using the Dilbert cartoon (omitted on hand-out versions) is a good example. I first emailed United Media, but, getting no response, two days before the presentation I e-mailed Scott Adams and complained. He promptly replied with a cc to a suitable person, who quickly replied. I payed with credit card (faxed via our internal intranet) and downloaded the image off the net. 45 dollars for the rights of using it once.