Replying to Avatar Tim Bouma

All existing payment systems are account-based. They are 100% surveillable and individually ruggable.

With Cashu, it’s now possible to create a bearer-token-based payment system. This payment system is much harder to surveil and almost impossible to rug specific individuals.
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dfa94a58... 1y ago 💬 1

a bearer instrument is an asset that when held , the holder irrecoverable owns it. If that asset is a bearer instrument and is in a fedimint, the fedimint owns it.

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Tim Bouma 1y ago

For ecash (Cashu and Fedimint) the ‘bearer instrument’ is a credit note in the hands of the holder. It doesn’t actually exist in a mint. The mint only knows that it has some liabilities ‘out there’, but nothing is on record, save for the balance of the reserve.