Clever (and questionably valid) uses of checks can produce a surprising number of financial instruments.

A check with a due date in the future can function like a bond. A bearer check is essentially a circulatable promissory note. And a blank check is a bankruptcy declaration.

@alexbuzzbee

> Clever (and questionably valid) uses of checks can produce a surprising number of financial instruments.… a blank check is a bankruptcy declaration.

I'd say a blank check is more like a Durable Power of Attorney—it gives someone near-total ability to act on your behalf, including causing great harm of they abuse it. But neither *necessarily* trigger bankruptcy

@codesections @alexbuzzbee I had a friend from Brazil explain that cheques there function like people-issued currency, a shadow banking system almost.

I write a cheque to you. You go buy some stuff from your friend and pay with my yet uncached cheque, by adding their name and signing with yours, plus maybe another cheque from another friend to add up to the sum you want to pay.

It's a bit like the original idea with Ripple, but on paper.

At some point, presumably somebody will cash the cheque, maybe when the number of transfers run out of space. 😀

In most places you probably can't sign a cheque over to a new recipient? But he claimed that's what they did.
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@clacke @codesections This is essentially what I meant by "circulatable promissory note." It's "basically money" issued by someone that isn't the government, that can be turned into "real" money on demand.

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