Such schemes have been tried before, although the digital twist is a new
one to me. The perrenial problem has been the temptation to make lots
of currency, resulting in inflation. They have to have the ability to
make some currency for each new participant, otherwise stagnation occurs.
So they therefore have the ability to wreck their own economy through
inflation. Such a misdeed can be very profitable for them since they
are the first to spend the new currency.
In short, they have means and they have motive. What guarantees to
they offer on their money supply?
Robert Schrader rms@cts.com