Untraceable electronic funds transfer systems

The transfer of funds by electrical communication contains several problems. the electronic record, for example, can easily be copied, and it may be possible to make more than one payment on the same electronic check. From the viewpoint of privacy protection, it is desirable that the flow of funds cannot be traced. This paper proposes a method of money transfer and checking to solve those problems. Especially, a tally check system is proposed for the check system whereby privacy is protected. In the proposed method, before sending money the sender receives the tally constructed by the receiver, and asks the bank to issue an electronic check based on that tally. When the receiver wants money, he presents the electronic check to the bank together with the other tally which is secretly retained. Since the tally is used as proof for the correct receiver, it is impossible for the bank to trace the flow of funds. It is impossible to cash a check more than once since the bank retains the presented tally as the receipt.