Topic: will KYC laws permanently stifle bitcoin? - page 2. (Read 11714 times)

Certainly.  All is required is that a financial institution centered around Bitcoin be established as the trusted third party, and that said institution issue the debit cards and maintain the 'know your customer' database.  It is not an issue with Bitcoin either way, as it neither breaks the system, nor forces those who do not wish to depend on a third party to do so.

Even though we do not officially advocate "asset concealment" using bitcoin, I feel like many of us deep down like bitcoin for its potential in that arena.  Personally, I would love to have a bitcoin debit card, complete with the near universal acceptance of visa/mastercard.  I would be able to change the bitcoin address associated with this debit card whenever I want.

I am in the camp of people who feel that real world local prices will continue to be listed and paid for in the dominant local currency (whether it be USD or sea shells), not bitcoin.  Therefore, I tend to think that bitcoin's success is dependent upon the ability for a bitcoin user to transfer in/out of his local currency.  Unfortunately it is this transfer process that triggers the KYC and money exchange laws.  And further, once those laws are properly adhered to, I feel like most of the advantages of bitcoin disappear (anonymity being paramount).

There are some incredibly bright people in this group.  I'm wondering if we can have an "thought experiment" about how we could transcend the KYC laws, yet still offer functioning debit cards? Is this even possible?

I hate to say it, but I feel like unless bitcoin can be safely and effectively launder your assets (whether your consider this morally wrong or illegal is for another thread), people as a whole are more likely to stick with the alternative s such as LR and the others.  I would like to have a practical discussion about how to do this on a large scale, where exchangers wouldn't be in constant fear of incarceration or other penalties.  Cash through the mail and pre-paid visa/mastercards, and even paypal just isn't going to cut it for much longer, in my opinion.