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Confidence, A Key Element

Commodity money circulates because the stability of the society gives ground for confidence that the money will continue to be accepted habitually in exchange for goods and services. Similarly, the credit instruments of any government, bank, corporation, firm, or individual will circulate more or less widely in proportion to public confidence in its promises to pay. Likewise, a possible introduction of a digital cash system will require a period of long-term trust.



Adrian Perrig
Fri May 31 09:07:38 MET DST 1996