[Pat Farrell & Christopher Allen dug this up, and posted it to the Cypherpunks
list.  The general opinion is that this is "anti-DigiCash" - a move to get
in on an electronic money scheme now, that provides no anonymity, no privacy
protection, and is specfically degined for tracking purchases and other
traffic analysis, in hopes of nipping REAL DigiCash in the bud before it
spreads from Europe.  Article and commentary follows press release below.]


03/22 VISA ESTABLISHES INTERNATIONAL CONSORTIUM FOR ELECTRONIC PURSE
      SPECIFICATIONS

  SAN FRANCISCO, March 22 /PRNewswire/ -- Visa today formed an international
consortium of market leaders in the consumer payments industry to develop
common specifications for a new way to pay -- an "Electronic Purse," a card
with a micro chip that can be used instead of cash and coins for everything
from vending machines to public transportation.
  The Electronic Purse would consist of a micro-chip embedded in a credit
card, debit card, or stand alone card to store value electronically.  The card
would replace cash and coins for small-ticket purchases (less than U.S. $10),
such as gasoline stations, pay phones, road/bridge tolls, video games, school
cafeterias, fast food restaurants, convenience stores, and cash lanes at
supermarkets. Cardholders can "reload" the micro-chip and control the amount
of value stored in the card's memory.  The Electronic Purse provides
cardholders with the security and convenience of carrying less cash and coins,
eliminating the need for exact change.  Many participants in this worldwide
effort are currently pilot testing electronic purse products, additional
pilots are expected in late 1995.
  Joining forces with Visa to develop international technical specifications
for the Electronic Purse are: Banksys; Electronic Payment Services, Inc.,
(EPS); Financial Information Systems Center, (FISC); Groupement des Cartes
Bancaires, (CB); NationsBank Corporation; Sociedad Espanola de Medios de Pago,
(SEMP); Sociedade Interbancaria de Servicos, S.A., (SIBS); and Wachovia
Corporation.  To ensure worldwide representation, limited additional payment
systems that have invested energies in open-market electronic purse projects,
will be invited to join.  In addition, Visa will form a parallel group with
technology companies to ensure the specifications support low-cost, efficient
production of necessary equipment.
  "The goal of our combined efforts is to lead the market into the next
frontier of payment processing -- the automation of cash and coins," said Ed
Jensen, president and chief executive officer, Visa International. "The highly
complementary capabilities of the participating companies will allow us to
address issues for all aspects of smart card-based electronic purse solutions,
including the cards themselves, point-of-sale systems, networks and back-end
interchange and settlement systems."
  This announcement reflects Visa's commitment to providing superior,
convenient payment services to its member financial institutions who serve
consumers and merchants around the globe.  The consortium was formed in
response to member requests that Visa take the lead in facilitating the
addition of an electronic purse to existing credit and debit cards, as well as
the introduction of a stand alone card.  Visa will leverage its global brand
presence by teaming up with strategic partners to develop common standards.
  "The most critical step in making this concept a global market reality is
the definition of open standards that can be shared among all participants,"
said Wesley Tallman, president, Visa Products and Information Services.
"Recognizing that important domestic electronic purse developments are
underway, the consortium will leverage the expertise of all participants.
Group 'knowledge sharing,' especially with our European participants that have
made significant advancements in the chip card arena, will facilitate the
development of a specification that is relevant to markets worldwide."  The
technological specifications will govern the standards needed to establish an
infrastructure that supports electronic purse payments.
  The worldwide market for automating cash transactions remains virtually
untapped.  According to the Bank for International Settlement, consumer cash
transactions in the U.S. alone exceed 300 billion per year.  By contrast,
bank-facilitated consumer transactions, such as credit and debit cards,
checks, and wire transfers total only 60 billion per year.  As these figures
indicate, there is a vast market potential for automating cash transactions.
"EPS has been investing significant resources to develop smart card solutions
since 1991," stated David Van Lear, chairman and chief executive officer of
Electronic Payment Services, Inc.  "Combining the resources of these industry
leaders will accelerate market acceptance."
  Just as the standard operating environments have fueled the growth of the
personal computer industry, the specifications that emerge from this
collective effort will provide the essential framework to ensure
compatibility, reduce development time and cost, and open up the market for
others.
  International payment system participants included in this cooperative
effort are:
  Banksys -- based in Brussels, Belgium, is a leading European specialist in
electronic funds transfer (EFT) and payment security. Banksys operates the
automated teller machine (ATM) and point-of-sale (POS) network on behalf of
all card issuing banks in Belgium.  Besides Belgium, 10 other countries are
equipped with the Banksys system. Banksys is entrusted with the development of
the Belgian Electronic Purse project, with pilot testing expected to begin in
December 1994.
  Electronic Payment Services, Inc.(EPS) -- based in Wilmington, Del., is the
leading electronic funds transfer company in the United States with an annual
transaction volume of 1.7 billion.  EPS is the holding company for BUYPASS
Corporation and MONEY ACCESS SERVICE INC., operator of the MAC(R) network.
  Financial Information Systems Center (FISC) -- based in Taipei, Taiwan, is a
government organization that supports electronic purse initiatives in that
country.  Through its members, FISC has issued 80 thousand integrated circuit
cards and has installed more than one thousand point-of-sale systems with
integrated circuit card readers.
  Groupement des Cartes Bancaires (CB) -- based in Paris, is the country's
payment cards organization that has succeeded in launching the world's largest
integrated circuit card program, with more than 22 million cards in
circulation generating 2.2 billion transactions per year.
  NationsBank Corporation -- headquartered in Charlotte, N.C., is the third
largest banking company in the United States with approximately $158 billion
in assets, more than 1,900 retail banking centers in nine states and the
District of Columbia, and consumer offices in 33 states. NationsBank is a
financial services company providing products and services nationally and
internationally to individuals, businesses, corporations, institutional
investors and government agencies.
  Sociedad Espanola de Medios de Pago (SEMP) -- based in Madrid, SEMP is a
sister company of Visa Espana, a group member of Visa banks in Spain.  SEMP
operates Sermepa, the card processing company of Visa Espana.
  Sociedade Interbancaria de Servicos, S.A., (SIBS) -- based in Lisbon,
Portugal, is the country's leading bank payments company which provides
electronic clearing services and operates the national Multibanco ATM and
EFT/POS networks.  As an extension to its service offerings, SIBS, is
introducing the Multibanco Electronic Purse, (MEP).
  Visa International -- headquartered in the United States, is the world's
leading consumer payments system with more than 333 million cards issued, more
than 11 million acceptance locations, and the largest global ATM network.
  Wachovia Corporation -- with dual headquarters in Atlanta, and
Winston-Salem, N.C., is one of the United States' leading debit card issuers
and provides credit card services to three million cardholders nationwide.
  /NOTE TO EDITORS:  In December 1993 Visa International, MasterCard
International and Europay announced an agreement to form a joint working
group to develop a common set of technical specifications for the  integration
of microprocessor chips in payment cards -- commonly known  as "Integrated
Circuit," "Chip," and "Smart" cards.  The electronic  currency specifications
referenced in this release will enable the  electronic purse application to be
added to the integrated circuit  cards./
    /CONTACT:  Albert Coscia of Visa, 415-432-2039/
09:05 EST

PR NEWSWIRE

03/28 VISA TECHNOLOGY GROUP SUPPORTS ELECTRONIC PURSE SPECIFICATIONS

  SAN FRANCISCO, March 28 /PRNewswire/ -- Visa today announced the formation
of a technology group of international manufacturers to support the adaptation
of specifications for a variety of technologies that will facilitate the
issuance and acceptance of the "Electronic Purse" -- a payment card that
stores value electronically and is designed to replace cash and coins for a
wide range of low-value (under U.S. $10) consumer payments.
  The technology group will work with Visa who recently formed an
international consortium of payment systems that will develop common
specifications for Electronic Purse programs.  Because plans are underway for
the card to be used globally in a variety of venues -- including, gas/petrol
stations, grocery stores, convenience stores, fast food restaurants, school
cafeterias, and for such routine items as telephone calls from pay phones,
road/bridge tolls and video games -- a number of technologies required to
support card acceptance in global markets will be examined by the group.
  The first suppliers to join the international technology group are VeriFone,
Inc., the leading global provider of point-of-sale transaction systems, and
Gemplus, SCA, the world's leading manufacturer of smart cards.  VeriFone and
Gemplus have formed a joint venture, called VeriGem, to pursue electronic
purse opportunities.  To ensure worldwide representation, additional
technology leaders who have invested energies in electronic purse applications
will be invited to join the group.
  In addition to acceptance technologies, "loading" systems that enable
cardholders to restore currency value into the micro chip will also be
analyzed.  Automated Teller Machines (ATMs) are expected to play an important
role in loading value into the electronic purse. Future loading methods, such
as specialized devices located at merchant locations or in the home, will also
be explored.  Operating both the largest international consumer payment
network, VisaNet, and the world's largest ATM network puts Visa in a unique
position to lead this global effort.
  "As with all emerging technologies, consultation with suppliers responsible
for physically implementing the technology is critical to ensuring the
viability of the product design," said Wesley Tallman, president, Visa
Products and Information Services. "As market leaders in the payment systems
field, all of those who have joined us in this initiative are truly partners
in paving this 'express lane' of the electronic payment superhighway."
  Tallman emphasized that the technology group will be charged with ensuring
that the specifications developed by the consortium support low-cost,
efficient production of necessary systems and equipment.
  This group approach has been a key tool in support of Visa's product and
market development efforts.  In December 1992, Visa formed a manufacturer's
group to support development efforts for security specifications of integrated
circuits on payment cards. Still active today, this group lends critical
on-going support and expertise to Visa's chip card efforts.  Participants in
this international group include: Bull, CPS (France); Gemplus, (France);
Giesecke and Devrient (Germany); Schlumberger Industries (France); and Toshiba
Corporation (Japan).  Visa expects and welcomes the participation of these and
other technology partners in the electronic purse effort.
  Hatim Tyabji, chairman, president and chief executive officer of VeriFone,
agreed with the need for a supplier's group that would lend systems expertise
to this effort.  "Establishing worldwde specifications is the essential first
step in the global standardization of the electronic purse, uniting all
industry participants on a common playing field with a common set of rules.
The endorsement and support of the electronic purse by Visa, its member banks
and leading worldwide payment systems send a strong message to the industry --
the electronic purse is no longer merely a possibility, but a real market
direction," said Tyabji.
  "With their high storage capacity, programmability and increasing
affordability, smart cards are now poised to move beyond specialized
applications and become a truly universal payment medium," said Dr. Marc
Lassus, president and chief executive officer of Gemplus.  "We share the
consortium's vision of the electronic purse, and are excited about helping to
bring speed, reliability and efficiency of smart card-based electronic cash to
markets around the globe."
  Visa International, headquartered in San Francisco, California, is the
world's leading consumer payments system with more than 333 million cards
issued, more than 11 million acceptance locations, and the largest global ATM
network.
  VeriFone, Inc., based in Redwood City, California, is a leading global
provider of Transaction Automation solutions used to deliver payment
processing and other transaction services to various retail market segments,
as well as the healthcare and government benefits market.  The company has
more than 30 facilities located throughout Asia, Europe and the United States.
To date, VeriFone has shipped more than 3.4 million Transaction Automation
systems, which have been installed in more than 70 countries.  Net revenues in
1993 were U.S. $258.9 million.
  Gemplus Card International, based in Gemenos, France, is the leading
worldwide manufacturer of smart cards.  Gemplus' cards are used for secure
transactions in public and cellular telephone, banking, pay TV,
transportation, healthcare and defense applications.  The company has three
manufacturing facilities: two near Marseilles, France, and one near Stuttgart,
Germany.  Current Gemplus production exceeds 14 million cards per month.  The
company has direct sales offices in 12 countries and a distribution network
covering an additional 50 countries worldwide.  The company's 1993 revenues
were U.S. $130 million.
  NOTE:  Gemplus is a registered trademark of Gemplus Card International.
VeriFone is a registered trademark of VeriFone, Inc. Visa is a registered
trademark of Visa International, Inc.
  /NOTE TO EDITORS:  On March 22, 1994, Visa announced the formation of an
international consortium to develop worldwide technical specifications for the
Electronic Purse.  The supplier's group discussed in this release is a
complementary effort, serving Visa  in a consultative or advisory capacity.
  /CONTACT:  Albert Coscia of Visa, 415-432-2039/
08:45 EST

------------------------------------------------------------------------
..Christopher Allen                  Consensus Development Corporation..
..<consensus@netcom.com>                         4104-24th Street #419..
..                                        San Francisco, CA 94114-3615..
..                                        o415/647-6383  f415/647-6384..
..Mosaic/World-Wide-Web Front Door:                                   ..
..ftp://netcom7.netcom.com/pub/consensus/www/ConsensusFrontDoor.html  ..




From: tcmay@netcom.com (Timothy C. May)
Subject: The AntiCash -- was: Electronic Purse Press Release
Date: 4 Apr 1994 16:04:42 -0400

Thanks to Christopher Allen for passing on that latest "Digital Purse"
proposal. I won't quote-and-comment here.

Does this system provide _any_ protection againt fine-granularity
monitoring of payer identity? The talk of "clearinghouses" and the
involvement of VISA International and the Usual Suspects suggest
identity-blinding protocols are not in use. I also see no mention of
DigiCash, or even RSA (but maybe I missed that--and the presence of
RSA would not necessairly mean identity-blinding protocols were being
planned).

Likely Scenario: This is *not* digital cash as we think of it. Rather,
this is a future evolution of the cash ATM card and credit card,
optimized for faster and cheaper clearing.

Scary Scenario: This could be the vehicle for the long-rumored
"banning of cash." (Just because conspiracy theorists and Number of
the Beast Xtian fundamentalists belive it doesn't render it
implausible.)

There are many "reasons" to ban cash and make it all electronic:

* War on Drugs....need I say more?

* surface the underground economy, by withdrawing paper currency and
forcing all monetary transaction into forms that can be easily
monitored, regulated, and taxed.

* reduce theft of welfare checks, disability payments, etc....a
problem in some locales, and automatic deposit/cash card approaches
are being evaluated. 

* illegal immigrants, welfare cheats, etc. Give everyone a National
Identity Card (they'll call it something different. to make it more
palatable, such as "Social Services Portable Inventory Unit" or
"Health Rights Document").

There was a time when I would've said Americans, at least, would've
rejected such a thing. Too many memories of "Papieren, bitte. Macht
schnell!" But I now think most Americans (and Europeans) are so used
to producing documents for every transaction, and so used to using
VISA cards and ATM cards at gas stations, supermarkets, and even at
flea markets, that they'll willingly--even eagerly--adopt such a
system.

Make no mistake, this is not the digital cash that Cypherpunks
espouse. This gives the credit agencies and the government (the two
work hand in hand) complete traceability of all purchases, automatic
reporting of spending patterns, target lists for those who frequent
about-to-be-outlawed businesses, and invasive surveillance of all
inter-personal economic transactions.

This is the AntiCash.

Beware the Number of the AntiCash.


--Tim May


-- 
..........................................................................
Timothy C. May         | Crypto Anarchy: encryption, digital money,  
tcmay@netcom.com       | anonymous networks, digital pseudonyms, zero
408-688-5409           | knowledge, reputations, information markets, 
W.A.S.T.E.: Aptos, CA  | black markets, collapse of governments.
Higher Power: 2^859433 | Public Key: PGP and MailSafe available.
"National borders are just speed bumps on the information superhighway."

