Ramco Company sells gift items and flowers through its Internet store. In the past, it has accepted traditional credit card payments through its secure commerce server. However, the company has recently decided to accept digital cash. The company’s head of finance feels that digital cash would save the company a considerable amount of money in bank processing fees, as compared to credit card transactions. The only problem is that if digital cash is accepted, many customers may elect to pay with blinded digital notes. Ramco’s vice-president of marketing is against accepting blinded digital cash because it will allow customers to order and pay with pseudonyms, that is, fake names designed to protect the customers’ identities. The result is that the marketing department will not be able to build its usual database of information for customers paying with the blinded notes. That in turn will prevent marketing from soliciting those customers for repeat business. John Carlos, Ramco’s controller, is more concerned about the potential for fraud. Specifically, he is concerned that the company may end up accepting counterfeit digital money. Furthermore, due to cost considerations, Ramco does not have the resources for online verification of each note of digital cash. He estimates that in most cases approximately 2 days will elapse before a note can be determined to be counterfeit. The problem is that flowers are normally shipped the same day the order is taken.


Present the arguments for and against implementing the acceptance of digital cash. What changes might be made to make the system more workable?

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