Regulatory and Security Issues
8
Mondex was more than just a subtle variation on a credit card. It was essentially, a private enterprise entering
into a business that for many years had been the sole province of government - the issuance of cash. But
this, according to Robert Caplehorn, Mondex's Company Secretary and General Counsel, was a relatively
new phenomenon in some markets.
Up until the 1860s individual banks in the United States printed their own currency. In the
interests of national commerce, the government eventually stepped in. Today, history is
repeating itself as private enterprise begins to issue a tiny portion of currency in the form of
electronic units.
Recognizing that future economies were likely to rest on these new technologies, western governments
seemed willing or resigned to permit some experimentation. But, regulatory hurdles still had to be overcome.