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The biggest problem is that you could comply in that an ssn could be attached to each transaction, but ssns are both usernames and passwords that are used to au
by narrator 5y ago
The biggest problem is that you could comply in that an ssn could be attached to each transaction, but ssns are both usernames and passwords that are used to authorize transactions and identify a person, so they can't be stored where everyone can read them.
Perhaps if the government switched over to digital signatures instead of SSNs compliance would be possible.
The requirement for secrets only shared with the government in each transaction is what breaks crypto in this instance. Perhaps someone could figure out a way to easily attach secret information that only the government could read to each transaction?
One solution would be that each transaction would have an identity broker attached to it where you would store your verified identity that would send the tax records to the IRS for you on the person the transfer was going to on their behalf, so you wouldn't have to see the SSN of everyone you did business with and likewise.
The key here is to separate custody of funds from knowledge of identity.
Edit: downvotes? Why? Can someone tell me why I'm at least wrong?
- dogman144 5y ago> Perhaps someone could figure out a way to easily attach secret information that only the government could read to each transaction? attaching an SSN to every bitcoin transaction is nonsensical, in short.
- josho 5y agoYou are thinking of this like a technologist. Think about it on how we handle reporting requirements on a cash transaction. There is nothing inherent in a cash purchase that facilitates reporting of the transaction to the government. All of that _paperwork_ is handled outside of the transaction itself. With crypto the same manual reporting would apply. If however we want to supplement crypto with new extensions to help facilitate the reporting that's certainly possible.