Re: [Taler] What happens when an exchange goes bankrupt?

[Calvin Burns]

On Sun, 07/17/2022 02:37:13 PM, Christian Grothoff wrote:
> On 7/17/22 13:47, Calvin Burns via Taler wrote:
> > Assume a Taler system with multiple independent exchanges.
> > I think the economic state of an exchange should be independent of the 
> > payment
> > system.
> > 
> > What happens or what is planned if an exchange goes bankrupt?
> 
> We generally advocate for the assets that the exchange holds in escrow
> for the coins that are in circulation to be treated as a separate
> special asset / fund, that would be excluded from the assets that would
> be part of the usual asset liquidation process and instead always 100%
> go back to the owners of the Taler coins.
> 
> > Who takes over what and how?
> 
> Well, first of all there is usually a legally appointed person to
> organize the "clean" termination of the business, so they would take
> over operations of the exchange (for a brief while, to run the
> revocation/termination protocol).
> 
> > Are there plans/protocols for this scenario?
> 
> Yes, there is the revocation protocol that instructs all wallets to
> deposit their coins to receive the money back into the originating bank
> account.  The exchange would stop executing regular transactions, but
> would need to be kept accessible (as a REST endpoint) for long enough
> for all wallets to notice and deposit the coins that remain in circulation.
> 

Thank you!

Do you know if there is something similar in place for the banking system?  What
happens if a bank goes bankrupt, say the bank the exchange has its accounts at?

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