[e-gold-list] Re: Gold Age/MSB's

[Craig Haynie]

> Do you think PayPal would get away with a civil suit these days?  It
> seems to me that you're a "respectable" financial institution
> if you had
> regulatory approval on September 10th 2001.  If you are
> outside that --
> because you are new or because, like e-gold, there was no framework to
> regulate you -- you are seen as a money laundering risk.

Paypal was not regulated in 2002, and was outside of any 'framework to
regulate'. eCurrencies are not considered banks or money tranmitters.
Nevertheless, things may change, and I don't know the outcome of the PayPal
lawsuit. They may have settled.

> I had a business plan for a money transmission business, and I was
> trying to interest banks in it.  I think they trusted me as an
> individual, but it was hard to convince them that I wouldn't
> be tricked
> and used for money laundering by a third party.

And there's no way to do that. If money is to be easy to move, then
inevitably, some thieves will move their money through whatever system is
built. Web money doesn't have a chance unless this is realized and accepted.
Shoot, it's easy to move money through Western Union, even without proper
documentation.

> Of course the big problem for the economy is that it makes
> the financial
> services sector uncompetitive, by closing the door to new
> entrants.  I'd
> really like to try again with my money transmitter, but I
> have something
> else profitable now -- it's easier but not so much fun...

Digital gold currencies offers people in third world countries a way to
compete without having to take US dollars and pay high exchange rate fees to
convert to their local currency. eCurrencies are extremely convenient, and
this, apparently, is a problem.

Craig




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