>From: [email removed]
>Subject: Money?
...
>Money in the future. We've always thought it would be bank cards and monster
>ATM's, but... with the speed of Jump and all it's effects on information
>transfer, are electronic money transfers the norm for characters?
...
>Bob Mahoney
Banking depends upon reliable information. Interstellar information is
limited by the speed of Jump, effectively introducing lag times upwards of
one week.
The result? Instant banking is not allowed across interstellar systems.
Would-be entrepreneurs have three options:
* carry suitable currency with them
* barter
* wait for letters of credit to be registered
The first two solutions are obvious, and not particularly efficient.
However, they are often the only choices available, especially in a system
that is not within the political sphere of the entrepreneur's bank.
Letters of credit are more convenient, but can only operate under
well-ordered economic and political systems that span more than one system.
The letter of credit is exactly that: an official transfer of credit from
the banking system of one world to that of another. To work, the
entrepreneur presents the letter to a bank that has a trade agreement with
his home bank. Upon authentication of the letter, the entreprenuer is
credited with a certain sum (indicated on the letter). The foreign bank
trusts that the home bank will credit its (the foreign bank's) account with
this same sum. Occasionally, actual coinage will be shipped between worlds
to even out any net inbalance of trade.
Of course, letters of credit will be closely inspected for evidence of
forgery. In fact, many banks will insist that the letters are delivered by
official agents of the Imperium through standard X-boat channels. Some
banks may require confirmation (particularly for large transfers) from the
home bank --- resulting in long delays while inquiries are sent back and
forth. Entrepreneurs may be held up for months while credit is "in
transfer."
No wonder the economy is so fragmented.
*** Scott Holter [email removed] ***
*** "Maybe I can't save the world, but perhaps I can make it a safer place ***
*** to have a beer." ***