Jon Matonis – Why There Is a Demand for Liberty Reserve's Services

Jon Matonis – Why There Is a Demand for Liberty Reserve’s Services:

E-currency expert and Bitcoin Foundation board member Jon Matonis (@JonMatonis) authored an article for Payments Source describing the attributes of Liberty Reserve and why a digital payments system with those attributes is so valuable.  Excerpts:

“In a free society with a market-driven economy, payment privacy and payment finality are legitimate and useful features of a currency – physical or digital.”

“By default, Federal Reserve-issued physical cash comes with payment privacy and payment finality.”

“Once troublesome physical cash is finally eradicated, any digital currency with privacy and irreversibility attributes will be next for scheduled termination. In the case of Liberty Reserve, It’s not the individual infractions committed by clients of Liberty Reserve that are worrisome to the regulators, it’s the fact that a semi-reliable platform for private payments existed in the first place.”

“If banks and traditional financial institutions still respected basic client privacy and facilitated some form of digital payments that did not always involve harmful reversibility to the merchants, then companies like Liberty Reserve wouldn’t even be necessary.”

“To protect themselves, merchants require payment finality or irreversible payment methods. That means using only international wires or services like Liberty Reserve.”

“Business sectors that benefit from payment finality include [gold bullion sales,] online casino gaming, sports betting, lotteries, adult services, pawn shops, credit repair services, debt settlement services, and virtual currency exchanges that involve the trade of other negotiable instruments or the loading of prepaid cards.”

“The Liberty Reserve payment system acted as an international wire service for regions of the world that were totally ignored or blockaded by SWIFT and the international banking system.”

“Choice in currency is a freedom of speech issue. Failing to recognize that fact only serves to strengthen the entrenched payment oligarchies and to undermine personal liberties in the transactions environment.”

“Expect to see a lot more [money exiting the digital banking system] especially since the free market has been mostly stripped of digital payment finality and ‘Cyprus-ed’ has become a verb.”

 – http://bit.ly/17lMoof
 – http://bitcointalk.org/index.php?topic=225350.0 (Further discussion of the article)

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