> Taler does not require any Blockchain technology, and is also not based on proof-of-work or any other distributed consensus mechanism. Instead, Taler is based on blind signatures. However, it is theoretically possible to combine Taler with peer-to-peer crypto-currencies like Bitcoin.
> It would be possible, however, to withdraw coins denominated in Bitcoin into a Taler wallet (with an appropriate exchange), which would give some benefits over plain Bitcoin, such as instant confirmation times.
It's a federated system/protocol that doesn't have a currency of its own. There should be Exchanges you are supposed to trust, that accept your CURRENCY_NAME and give you anonymous tokens (think of it as electronic cash) in exchange. You spend them in Merchants' shops. The Merchants claim the CURRENCY_NAME back from the Exchanges. No one knows what you bought but the Merchants can be audited by the Government to be taxed. That's their plan as I understand it.
> It would be possible, however, to withdraw coins denominated in Bitcoin into a Taler wallet (with an appropriate exchange), which would give some benefits over plain Bitcoin, such as instant confirmation times.
I don't really know what to make of it.