Advertisement

The uses and limits of financial cryptography: A law professor's perspective

  • Peter P. Swire
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 1318)

Abstract

There is considerable support in the cryptography community for the “Cypherpunk Credo,” defined as: “Privacy through technology, not legislation.“ Much discussion to date has assumed that the U.S. government's opposition to strong cryptography, such as its key escrow proposals, is the primary obstacle to widespread use of anonymous electronic cash. For purposes of this paper, I assume that strong cryptography is legal and readily available. Even in that event, I claim that strong cryptography will be used to preserve anonymity only in a highly restricted subset of financial transactions. Furthermore, because technology often will not assure privacy, legal rules can and should play an important supplementary role in the protection of privacy in financial transactions.

Keywords

Credit Card Legal Rule Financial Transaction Default Rule Debit Card 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Ian Ayres & Robert Gertner, “Filling Gaps in Incomplete Contracts: An Economic Theory of Default Rules,” 99 Yale Law Journal 87 (1989).Google Scholar
  2. 2.
    Valerie Block, “ATM Cards Hit a Wall: The Next Breakthrough is Years Away, Bankers Say,” American Banker, Jan. 2, 1997.Google Scholar
  3. 3.
    David Chaum, “Achieving Electronic Privacy,” Scientific American, Aug. 1992, p. 96.Google Scholar
  4. 4.
    Equifax-Harris Mid-Decade Consumer Privacy Survey (1995).Google Scholar
  5. 5.
    A. Michael Froomkin, “The Metaphor Is the Key: Cryptography, the Clipper Chip, and the Constitution,” 143 University of Pennsylvania Law Review 709 (1995).Google Scholar
  6. 6.
    A. Michael Froomkin, “The Essential Role of Trusted Third Parties in Electronic Commerce,” 75 Oregon Law Review 49 (1996).Google Scholar
  7. 7.
    Furash & Co., Banking's Role in Tomorrow's Payments System: Ensuring a Role for Banks, A Study Prepared for the Banker's Roundtable (1994).Google Scholar
  8. 8.
    Michael C. Jensen & William H. Meckling, “Theory of the Firm, Managerial Behavior, Agency Costs and Ownership Structure,” 3 Journal of Financial Economics 305 (1976).CrossRefGoogle Scholar
  9. 9.
    Testimony of Michael S. Karlin, U.S. House of Representatives, Committee on Banking, hearing on “The Future of Money,” Mar. 7, 1996.Google Scholar
  10. 10.
    Bruce Schneier, Applied Cryptography (John Wiley & Sons, 1996) (2d ed.).Google Scholar
  11. 11.
    Dashka Slater, “Secret Agents,” Express: The East Bay's Free Weekly, Mar. 14, 1997, p. 1.Google Scholar
  12. 12.
    12. Peter P. Swire, “Cyberbanking and Privacy: The Contracts Model,” www.osu.edu/unitst law/swire.htm (preliminary draft available, April 1997).Google Scholar
  13. 13.
    Peter P. Swire, “Markets, Self-Regulation, and Government Enforcement in the Protection of Personal Information,” www.osu.edu/units/law/Swire.htm, scheduled to be released at www.ntia.gov (1997).Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1997

Authors and Affiliations

  • Peter P. Swire
    • 1
  1. 1.College of LawOhio State UniversityColumbusUSA

Personalised recommendations