E-Cash as a competing currency

[FreeMind&Market]

An employee of my web host posted a blog rant suggesting the treasury switch to E-Cash. The comments following the post are debating privacy versus convenience. What would Ron Paul do?

Here's the link to the blog post (scroll past the tirade on credit cards):
http://blog.dreamhost.com/2007/12/07/a-strike-on-credit-cards/

[therealjjj77]

First, e-cash is not backed by anything. The Federal Reserve already creates plenty of money by simply typing a number in a computer. The point isn't the paper. The point is that the paper has no backing. So if it was electronic "paper" it still would have no backing. And backing a currency with US dollars is still not a competing currency. In fact, in many communities this type of alternate currency exists in which a currency is used that is backed by US dollars. The Federal Reserve does not care about that. What they care about is when someone is out of their sphere of control and uses a currency(like the Liberty Dollar) that is backed by something they can't tax or regulate.