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Wow, so great, an operator holding billions of individuals' money as a "money transmitter" without any FDIC insurance now is allowed to print their own currency
by noduerme 3y ago
Wow, so great, an operator holding billions of individuals' money as a "money transmitter" without any FDIC insurance now is allowed to print their own currency.
Hey friends, try starting a money transmitting business or printing your own money, and see how long it takes to get arrested if you don't have both massive investment and friends in powerful places.
PayPal doesn't deserve to hold this special, seemingly untouchable perch in our economy. If we want the wild west, then let everyone else open up the same business. Otherwise, regulate them like a bank. I hope the DOJ goes after them next.
- deleted 3y ago[deleted]
- trompetenaccoun 3y agoThey're not 'now' allowed to do this, they've always been allowed to in the US. Others such as Singapore and the EU (with MiCA) have by now introduced regulation specifically for stablecoins but US lawmakers have so far failed to do so. >printing your own money They're not printing money though. They do the same they've done prior, only now with more transparency. Most HN users have probably interacted with Paypal at some point in their lives, but how many understand what sort of "dollars" they sent or received? Because it's certainly not legal tender. Neither are the digital dollars in your bank account. They're private book money. In the case of banks we outright know most of it isn't even backed by real dollars, thanks to fractional reserve banking. This is a very real concern when you have more money in the bank than the insured amount. And as for Paypal who knows what they're backed by. Holding virtual funds backed by 100% US treasuries is a lot safer than backed by 'trust me bro'.