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For Users

The disadvantages presented in this subsection might seem not very weighty, but on second sight they are at least of the same importance than the other disadvantages mentioned before.

First of all, fewer people can understand the technology behind digital money, and thus it does not inspire confidence. Conventional money on the other hand does not require any profound knowledge in order to use it.

The rising of E-cash could also foster a have and have-not society: Those with PCs would have ready access to the new technology, while those without, many of them low-income consumers, would not.

With digital cash, numbers stored somewhere in a pocket computer, the notion of money is somewhat lost. Sometimes we use the physical tangibility of cash in order to hand money personally to someone else, e.g. as a gift, as charity, or as a tip. This cannot be done with digital cash. With regard to tips, it is important for waiters, for example, to have some means to supplement low pay. It is not certain that procedures such as rounding up the bill, or leaving some coins on the table will occur when digital cash is used.

Also, children might have difficulties to learn to get a feeling of ``how much'' something costs. Handhold readers that display balances might be of help, but will probably not be fully equivalent to the look and feel or the symbolic meaning of cash.



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