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...that point where the policymakers realize "Oops this cryptocurrency stuff is not going away on its own". Next step: Pass some laws to shut it all down. (ED

...that point where the policymakers realize "Oops this cryptocurrency stuff is not going away on its own". Next step: Pass some laws to shut it all down. (EDIT: To be clear, I don't agree with this, but this is what's going to happen).

supermatt 7y ago
It being crypotocurrency isnt the issue here. The problem is that this isn't the same as a proof of work system - it is proof of stake - with the "burden" of proof put on facebook and its partners. This means that they can simply "create" currency with no oversight or proof of reserve. In short, it works EXACTLY like a central bank, but it's not regulated. This is extremely dangerous for consumers.
- stakhanov 7y ago
  My point is: The trend in financial services and payment systems regulation is going in the complete opposite direction of the kind of features that would make crypto interesting. Decentralization, Anonymization, etc are all things that the policymaker has been actively working to combat.
  - supermatt 7y ago
    This isn't decentralized (its overseen by facebook and partners). It's not anonymous either (in order to participate in the network you need identification). This is a bank, albeit using the cryptocurrency label to pretend it doesn't need regulation.
    - vageli 7y ago
      This is _exactly_ the point stakhanov is making.
      - supermatt 7y ago
        I dont read it as that. > "Oops this cryptocurrency stuff is not going away on its own". Next step: Pass some laws to shut it all down. > Decentralization, Anonymization, etc are all things that the policymaker has been actively working to combat. The reason policymakers should want to regulate this is because it is a bank - not because its decentralized or anonymized (because its not)
        stakhanov 7y ago
        Well: Either it is crypto, in which case policymakers are going to dislike it because of how crypto is linked to these aspects that policymakers dislike. Or, if they called it crypto when it's not really crypto then that play clearly backfired because instead of lessening the regulatory scrutiny it's actually increasing it. Either way, I think my point is valid: Cryptocurrency is in this state of limbo where it's something that policymakers dislike but they haven't yet gotten around to making the laws that say so. I can't see into the future, but I am hereby going on the record by saying that this is something I am expecting will happen. And facebook entering the scene serves as a catalyst to accelerate the lawmaking. Them kind of saying "hold on a sec..." is what I see as this process kicking off right now. Will be interesting to see whether it holds true or not.
        mercutio2 7y ago
        > ... haven’t gotten around to making the laws that says so. Huh? The SEC is very clear that most crypto currency is a security. The laws are on the books. That deranged Reddit people imagine the laws don’t apply to them in no way changes that. Similarly, Facebook appears to be proposing that they become a bank, then putting some lipstick on to suggest they’re not a bank. The laws are on the books about how banks are regulated. The argument here is “does claiming you’re not the thing you obviously are work as a tactic to avoid regulation”. Clearly AirBNB and Uber got away with it, so Facebook is hoping they can, too.
        stakhanov 7y ago

supermatt 7y ago

It being crypotocurrency isnt the issue here. The problem is that this isn't the same as a proof of work system - it is proof of stake - with the "burden" of proof put on facebook and its partners. This means that they can simply "create" currency with no oversight or proof of reserve. In short, it works EXACTLY like a central bank, but it's not regulated. This is extremely dangerous for consumers.

stakhanov 7y ago
My point is: The trend in financial services and payment systems regulation is going in the complete opposite direction of the kind of features that would make crypto interesting. Decentralization, Anonymization, etc are all things that the policymaker has been actively working to combat.
- supermatt 7y ago
  This isn't decentralized (its overseen by facebook and partners). It's not anonymous either (in order to participate in the network you need identification). This is a bank, albeit using the cryptocurrency label to pretend it doesn't need regulation.
  - vageli 7y ago
    This is _exactly_ the point stakhanov is making.
    - supermatt 7y ago
      I dont read it as that. > "Oops this cryptocurrency stuff is not going away on its own". Next step: Pass some laws to shut it all down. > Decentralization, Anonymization, etc are all things that the policymaker has been actively working to combat. The reason policymakers should want to regulate this is because it is a bank - not because its decentralized or anonymized (because its not)
      - stakhanov 7y ago
        Well: Either it is crypto, in which case policymakers are going to dislike it because of how crypto is linked to these aspects that policymakers dislike. Or, if they called it crypto when it's not really crypto then that play clearly backfired because instead of lessening the regulatory scrutiny it's actually increasing it. Either way, I think my point is valid: Cryptocurrency is in this state of limbo where it's something that policymakers dislike but they haven't yet gotten around to making the laws that say so. I can't see into the future, but I am hereby going on the record by saying that this is something I am expecting will happen. And facebook entering the scene serves as a catalyst to accelerate the lawmaking. Them kind of saying "hold on a sec..." is what I see as this process kicking off right now. Will be interesting to see whether it holds true or not.
        mercutio2 7y ago
        > ... haven’t gotten around to making the laws that says so. Huh? The SEC is very clear that most crypto currency is a security. The laws are on the books. That deranged Reddit people imagine the laws don’t apply to them in no way changes that. Similarly, Facebook appears to be proposing that they become a bank, then putting some lipstick on to suggest they’re not a bank. The laws are on the books about how banks are regulated. The argument here is “does claiming you’re not the thing you obviously are work as a tactic to avoid regulation”. Clearly AirBNB and Uber got away with it, so Facebook is hoping they can, too.
        stakhanov 7y ago