Legal Seminar, Denver, CO

Concerns for Consumers/Merchants • Costs (Remember, cash is not costless). • Security (Technical and physical dimensions). • Trust  – Finality of cash creates assymetry – Intermediaries as a common solution. – Cryptocurrencies present new problems:  trust the  software?  But what if it cheats us (or we make a  processing mistake)?  To paraphrase Bob Dylan, “you  gotta trust somebody…” • Speed and convenience. E‐Payments: Regulatory Overview • ACH System.   – Good example of private ordering at work – NACHA promulgates collective rules. – “Commercial reasonableness” remains standard  for security • Note the need to contemplate innovation  • Innovation responds to threats, which are fast moving – Speed is an issue:  “Faster Payments” initiative. • Delay = risk = trust requirement