Tag Archives: Cheque

In the Trustlines Network every user is acting as a bank by granting credit lines to friends they trust. This allows to issue people powered money between friends and facilitate secure payments between strangers, by sending payments along a chain of trusting friends. Think of IOUs or cheques and netting in the blockchain.

On his blog, JP Koning discusses the versatility of cheques: A cheque instructs a bank to transfer deposits. It is a derivative on bank deposits. A post dated cheque serves as debt instrument, e.g., vis-a-vis pay day lenders. An uncashed cheque may serve as money if marked “to bearer” or endorsed by the recipient. Laws grant cheques currency status. A cheque may be used for payments even if other payment mechanisms break down. During the Irish banking strike of 1970, “for six months...