| Problem with KYC and AML is that if you listen to the regulators, there is no end to it, the requirements only increase. I was once asked to provide 20 years of banking receipts for a small savings account that my grandmother had opened for me when I was 5. In the EU at least, it's common for banks to block transfers between countries, even if the transaction is well-documented. The most infuriating thing is that there's no real proof that AML works. It's just excellent at false positives, ending in account freezes for innocent people. Stablecoins' success is also a reaction to the ever-increasing friction created by overreaching regulation. If you have a supplier in China, and need to buy some in-demand goods, you can sign the contract and send the money now, whereas with the classic banking system, you'd have to wait for two weeks to clear everything. This alone is brilliant and should be welcomed for its usefulness. |
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| ▲ | Saline9515 5 days ago | parent [-] | | What is interesting with stablecoins is that they are on the blockchain, which acts as a decentralized, uncensorable ledger which doesn't require you to tell a bank clerk what is written inside your wedding ring to be allowed to buy a second hand BMW in Poland. | | |
| ▲ | topranks 4 days ago | parent | next [-] | | Indeed. Blockchains are for breaking the law. I think it would be wholly better, in democracies, if we changed laws we didn’t like than tried to create technology to evade them. | | |
| ▲ | Saline9515 4 days ago | parent [-] | | The law says that banks need to do AML/KYC, a blockchain is not a bank, it's decentralized. Besides, being able to break a law can be good, when such laws have little to do with crime prevention, and more about feeding an industrial complex that earns from those frictions. And buying a car is not illegal as far as I know. The main proponent that dictates the regulations, the FATF, is a shady, unregulated body that is used for political and economical repression. | | |
| ▲ | wbnns 3 days ago | parent [-] | | > a blockchain is not a bank, it's decentralized Not all blockchains are decentralized, it depends on the consensus mechanism |
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| ▲ | baq 5 days ago | parent | prev [-] | | but if you buy a BMW in Poland on a stablecoin chain, everybody will know. | | |
| ▲ | djrj477dhsnv 4 days ago | parent | next [-] | | Only if they happen to know the connection between you and the seller's wallet addresses and your respective identities. Almost all the crypto I have is from p2p or freelancing. Very few could connect my identity and my wallets. | |
| ▲ | Saline9515 4 days ago | parent | prev [-] | | Maybe, but at least no one will block the payment. |
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