Re: [Taler] note to 035-regional-currencies.rst

[Christian Grothoff]

On 2/12/23 14:13, Calvin Burns via Taler wrote:
> Just some thoughts about local currencies.
>
> An exchange could also connect two regional currencies.
> The "cash-out" function would translate currency 1 to currency 2 somehow.

We actually think that in general currency conversion should likely be 
the role of a merchant, where you purchase one currency and pay with 
another one.  The regional currency 'cash-out' functionality by libeufin 
is a bit of a special case, as this is handling the case where no 
exchange is available for the fiat currency.

> Today every commercial bank creates it's own local currency by printing its own
> money (by creating credit (for itself or others) and take "interest" for 
> creating credit).
> How do they connect their local currencies (beside giving them the same name)?

That's different, as here it (usually) doesn't matter which commercial 
bank your money is with, especially given asset insurance and a 
reasonable regulatory framework. So if that exists, we'd show all of 
those commercially backed coins of the same denomination to be 
equivalent ("no scope") based on them sharing the same auditor(s). 
However, in cases where the specific issuer does matter, we can apply 
the same rule as for regional currencies and show the domain name of the 
(backing) issuer with the national currency.

At least, that's my interpretation of the current state of the design 
discussion ;-)

Happy hacking!

-Christian