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Of course, Ms. Chilton noted there is still the possibility for MintChip-specific apps to covertly record transactions. And, just like physical currency, if “you drop it, it’s gone,” she said.

MintChip can handle any amount of money, but the Mint envisions it as a way to digitize small transactions, like bus fare, a song download or a stick of gum.

‘The Mint isn’t saying they’re creating a substitute for cash tomorrow — but something that can be used as such in pieces overtime’

“The emerging digital economy must be able to accommodate small-value transactions, such as micro transactions (under $10) and nano-transactions (under $1),” said the Mint.

On April 5, the Mint launched the “MintChip challenge” to encourage software developers to come up with creative applications for the technology. The winners, to be selected by a judge’s panel including Mint CEO Ian Bennett and Google’s vice-president of payments, will be awarded the tongue-in-cheek prize of $50,000 in gold, one of the world’s oldest forms of currency.

MintChip’s technology — and even its name — is modelled closely on Bitcoin, an electronic cash system launched in 2009. The currency became the darling of hipsters, libertarians and criminals, all of whom liked the idea of using cash not controlled by a government or central bank. In the words of one Bitcoin enthusiast, the service “is not run by people with hot sexual appetites for hotel maids. It is not run by corporations.”