can you name some examples of companies that are exploring this idea? can they afford to not keep track of balances and txs given the legal requirements they operate under?

if they move user balances to cashu, how would the transition look like? it looks to me that it'd require interactivity from the user. are the users supposed to keep and back up the cashu proofs themselves?

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any ecash scheme is problematic at scale in terms of customer support and integration, not to mention that just because you have a sound *cryptographic* scheme doesn’t mean the service provider can’t track you via other means

In what sense you mean "integration"?

both the client and the server

yes. it also sounds like a nightmare for legal. i doubt anyone is seriously considering it.

That is a great question. My impression is, until users stores their own data, you are not liable for them. But probably depends country by country.