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B: New Development of Electronic Commerce -
Scenarios for Economic Structure Improvement

Feb 23 - Feb 25, 1998

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From: List Administrator
Subject: [020] Translation from the Japanese Online Conference

Following is a summary of points discussed in the parallel Japanese Online Conference.

16th February to 18th February
On the question of electronic settlement, real mall and virtual mall pilot schemes using IC credit and Visa Cash were introduced.

Opinions were exchanged on the topic of the greying society.
1. In America, there is an active Senior Net for senior citizens.
2. In America too, there is a considerable difference in the rate of Internet usage between younger people and older people.
3. But that doesn't necessarily mean that the older generation are not interested in the Internet and high tech devices and the like.
4. In such cases, a support structure for self help initiatives would probably be very useful.

But all this talk of 'senior citizens' gives one the impression that there is a particularly marked discrimination in Japan. However, there's no getting away from the fact that keyboards are a bit of a problem for older Japanese people.

From: Ronda Hauben
Subject: [021] Re: Your Advice to Japan:

Responding to the post by Jim Johnson [018]
We have enjoyed exploring many different ideas these past weeks concerning the nature of the global information infrastructure, the networked society, global electronic commerce, the various roles of present institutions in the future cyber world, the kinds of leadership needed to carry us into the future, and how we should educate and prepare the next generation for their brave new world.

It is good to see this broad framework being presented as a question to those in the online Nikkei forum.

I would like to challenge all of you, now, to frame these ideas in the form of some friendly advice that you would give to interested citizens in Japan.

This is a welcome challenge.

As you know, one of the reasons that Nikkei has organized this global net conference is to point toward a launchpad event on March 10, the Global Information Summit. This Summit is designed to increase awareness among Japan's leaders to what is happening around the world in the information revolution. This event is envisioned as the beginning of a process of thought leadership and debate to prepare the nation for the future.

Good to hear that it is envisioned as a beginning of debate and that the goal is to prepare for the future. Those are constructive and important aims.

Frame your comments in terms of what you would advise our friends in Japan: What new ideas need to be circulated to help get Japan ready for the networked world?

1)Firstly, what I propose, is consideration of the essence of the online achievement of a global network. I hope to continue my comments on this is a future post, but the nature of the Net as a new form of *communication* (as opposed to those who look to it as information), and the *regenerative* quality of such communication is a crucial foundation for any discussion of the Net.

2)Secondly, I propose, is understanding that people developing technology is part of the crucial understanding in which discussion of the future Net should be framed.

Based on what you know about Japan: their business structures, their political institutions, their education system, their cultural patterns, how would you recommend they change?

Having been online over several years I was impressed with contributions of the Unix community in Japan to the worldwide Net. Also I was impressed by the spirit and support of university based contributions to the Net.

In the U.S. there is much to learn from the way the Net developed at the university toward how it can be spread among other sectors of the population. I wonder if this is true in Japan as well, and would be interested in knowing more of the development of the Net in Japanese universities and if there are lessons from this development that can fruitfully help to guide how the Net is spread among the population without access at the Universities.

For example at universities in the U.S. access to email and unix based computer accounts helped to make it possible for those who came online to customize their Net usage to usage that would be helpful in their work. Also access to Usenet and other networking aspects like telnet, ftp etc. gave a broad range of what was possible once one got an account online.

In the U.S. I have seen schools where students, if they have any computer access at all, are being restricted to access to Windows95.

That means there is a much more limited range of computer activity to learn and utilize, than what a Unix account on the Internet would make possible.

I am struck by how much more dynamic it would seem to have a public school make linux available and allow all students to have email accounts, access to Usenet and www etc. (Especially if students are high school age).

I don't know what is happening in Japan currently with spreading Net access among K-12 grade students, particularly among older students (those in 6th - 12 grades).

But I have seen the excitement even of students who didn't have Net access but who wrote email messages that their teacher typed in so they could send them to other students and get email messages back.

The ability to communicate with other students in another geographical area (another State in the U.S. or another country) was very exciting for students and they eagerly looked forward to reading and writing these email message.

This is a minimal but actual example of how seeing the Net as a new means of communication among people is at the essence of what should guide those who are concerned with Net development.

What can they draw upon from the past and present to use in building the future information society?

What is there about Japan now that enables them to be leaders in the information age?

Sadly I have not yet been to Japan so I can only respond from my experience outside of Japan.

However, I have been impressed by the people I have met who are part of trying to spread the Net in Japan. It is clear from my conversations with them that there is a real desire in Japan to be part of the Global world the Net is making possible, and that there is a pressure to make sure that Japan is not behind or left out of these important developments.

Also the support given by various people in Japan to the print publication of a Japanese translation of our book 'Netizens: On the History and Impact of Usenet and the Internet' has been very encouraging and demonstrates that there is a hunger in Japan for real information about how the Net has developed and of its importance and there are those who are working to make such information and discussion possible.

These are very positive signs.

Also, it seems there is an understanding that there is a need to hear from the grassroots on issues, that there is a need for discussion among people at a grassroots level to determine the vision and needs for the future of the Net in Japan and in the world.

What new things and new ideas do they need to grasp to move forward?

What I have found most important in my study is that technological development is important, and that based on that development prototypes for the future vision can be grasped and implemented.

For example, Licklider and Taylor had a vision of the Net as a new means of human to human communication, and that this communication would make it possible for something creative and new to develop. This view grew out of and also gave support to the development of the time sharing communities that grew up in the 1960's.

From viewing the actual achievements of these new online communities that grew up in the development of time sharing operating systems, a vision of a broader network grew up, one that would link these time sharing communities together.

In a similar way when Usenet pioneers began Usenet, they took up the actual problems of linking together different campuses with UUCP and newsgroups, and felt that solving those real problems would help to make a broader network possible.

This combining of actual technological development with the study and discussion of what vision the developments help to clarify, is a methodology that helped those who built the Net and will I believe help those who want to contribute to its future growth and development.

What specific changes need to happen, and in what frameworks? The schools? the businesses? the political institutions? the legal system?

I would need to know more about the details of Japanese institutions and society and welcome hearing from those who have that knowledge and learning more myself, hopefully by visiting Japan sometime in the near future.

I look forward to advice. Thank you,

Thank you for posing these interesting questions. These questions, it seems to me are a form of leadership for Japan, as they are questions that need to be asked in other countries (like for example the U.S.) as well and it is exciting to see that such questions are being raised and discussion is being encouraged online of them. I had hoped that the publication of 'Netizens' in a print edition would help to stimulate such questions and such discussion, and it is good to see that at least in Japan, such thoughtful dialogue is being taken up.

I look forward to learning how these questions will be raised at the event on March 10, at the Global Information Summit, and how discussion afterwards will be continued.

From: Jeffrey Ritter
Subject: [022] Electronic Settlement (digital money)

The summaries of the Japanese discussions are very useful.

One aspect of digital money that does not appear to have been addressed is the fundamental question of whether 'digital money' truly exists. 'Money' under American law (the Uniform Commercial Code) refers to legal tender-i.e. that item which the national government has authorized to be used in satisfaction of a payment of debt.

But the use of credit cards and debit cards does not involve the payment of money - rather it involves a digital transaction in which the creditworthiness of the card issuer is provided in satisfaction of the debt.

Only one sovereignty has yet taken (to my limited knowledge, Denmark?) any action to confirm that digital payments are transactions involving legal tender. I am sure the list would welcome knowledge of how other governments have considered this question.

It would seem that, until digital currencies are validated as legal tender, extreme care must be taken to assure that true payments of the debt obligations resulting in normal sale transactions are being accomplished. Otherwise, the selling vendor may have the freedom to reject a tender of digital currency.

Ironically, perhaps there is one widely advertised example of this phenomenon. In the United States, one of the major card payment companies has advertised that with major venues, such as the Olympics, only their card is accepted in payment - i.e. their competitor's card is not 'legal tender' to purchase tickets. Could this be the precursor of thinking of competitive digital currencies?


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