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Re: [Taler] note to 035-regional-currencies.rst

From: Christian Grothoff
Subject: Re: [Taler] note to 035-regional-currencies.rst
Date: Sun, 12 Feb 2023 19:12:29 +0100
User-agent: Mozilla/5.0 (X11; Linux x86_64; rv:102.0) Gecko/20100101 Thunderbird/102.6.0

On 2/12/23 14:13, Calvin Burns via Taler wrote:
Just some thoughts about local currencies.

An exchange could also connect two regional currencies.
The "cash-out" function would translate currency 1 to currency 2 somehow.

We actually think that in general currency conversion should likely be the role of a merchant, where you purchase one currency and pay with another one. The regional currency 'cash-out' functionality by libeufin is a bit of a special case, as this is handling the case where no exchange is available for the fiat currency.

Today every commercial bank creates it's own local currency by printing its own
money (by creating credit (for itself or others) and take "interest" for 
creating credit).
How do they connect their local currencies (beside giving them the same name)?

That's different, as here it (usually) doesn't matter which commercial bank your money is with, especially given asset insurance and a reasonable regulatory framework. So if that exists, we'd show all of those commercially backed coins of the same denomination to be equivalent ("no scope") based on them sharing the same auditor(s). However, in cases where the specific issuer does matter, we can apply the same rule as for regional currencies and show the domain name of the (backing) issuer with the national currency.

At least, that's my interpretation of the current state of the design discussion ;-)

Happy hacking!


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