Comment by lxgr

Comment by lxgr 10 days ago

5 replies

The problem wouldn’t be a lack of alternative means to facilitate transactions, it would be a lack of trusted counterparties to transact with.

Grocery stores and bars used to let local trusted customers pay their accumulated purchases once per week or month, or accept personal checks from them without any means of verifying whether they were covered.

Today? It’s essentially cash or credit card, and no more mechanisms for local/decentralized credit decisions whatsoever, even if a checkout clerk might personally know a customer.

Because of ubiquitous connectivity, we have greatly increased, but also centralized trust. Local trust isn’t restored quickly, especially during an emergency when tensions are high anyway.

imoverclocked 10 days ago

There are digital forms of currency already but barring that, you can still manage centralized trust with distributed communication.

Ie: maybe I trust a mechanism by Google/Apple where tap becomes powered locally and the phone/device itself carries a balance.

It’s true that these solutions don’t exist today but they are not far away with the amount of pressure we are talking about by losing the internet.

Also, credit cards used to work in a similar way to checks. The information would be recorded and the transaction would be finalized later.

I came across a pre-magnetic-strip credit card years ago… it’s pretty fascinating how currency has evolved in the last half-century. There is no reason for me to think that it will stop where we are at today.

  • lxgr 10 days ago

    > Ie: maybe I trust a mechanism by Google/Apple where tap becomes powered locally and the phone/device itself carries a balance.

    That's something I'd definitely love to see, but it doesn't exist at the moment (in the US, at least; in Japan, there are stored-value cards in Apple Wallet that can support two-side offline transactions).

    > Also, credit cards used to work in a similar way to checks. The information would be recorded and the transaction would be finalized later.

    They used to, but they don't anymore. Almost all terminals and many cards won't let you do an offline transaction these days, for both credit and debit cards.

    > it’s pretty fascinating how currency has evolved in the last half-century. There is no reason for me to think that it will stop where we are at today.

    True, but unfortunately as far as I can see, it's all been moving towards a more centralized/connection-dependent system. That's great for when everything is working as expected, but raises some concerns about resilience.

    • imoverclocked 9 days ago

      >> it’s pretty fascinating how currency has evolved

      > it's all been moving towards a more centralized/connection-dependent system. That's great [...] but raises some concerns about resilience.

      Agreed. I hope that someone in these giant fintech institutions has considered that. It wouldn't surprise me if it's "not seen as a priority" though.

GTP 10 days ago

While I see the issue with credit cards, why wouldn't cash work? I see the two following possible issues:

1. ATM machines may stop working.

2. Your local bank branch may have issues knowing how much money you have on your account, making it hard to manually give you cash.

Both can be great issues, but can be worked around with a bit of time to prepare. Do you see other issues?

  • lxgr 10 days ago

    Cash would work, but depending on who/where you ask, many people don't even have enough cash on them (or at home) to get them through a single day.

    > but can be worked around with a bit of time to prepare

    The prompt was "the Internet goes away tomorrow", and I highly doubt that we'd be able to resurrect branch-based "offline" banking in a single day.