1421 sats \ 3 replies \ @odium 17 Dec 2023 \ on: Liquid is not a scaling solution bitcoin
Re: Fedimint.
Tornado Cash devs are thrown into jail for just deploying code. But actually custodying funds and in return issuing "untraceable eCash" is just gonna go unnoticed?! LOL, gtfo.
Whoever operates these mints has already one foot in jail.
And no, going dark is virtually impossible, since these mints require reputation for people to put their money there. They are an too easy target
Yes, this is where I get a little stuck. We've already seen some pressure being applied to custodial Lightning services (notably WoS). Won't the same play out with Fedimints / e-cash banks, or are there different dynamics here that I am unaware of?
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I suppose that is why they focus on communities and families. Custodianship already happens there. Doesn't mean the state won't go after then, but at very least, they aren't themsleves holding or profiting.
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excellent point. They are basically banks and subject to the regulation as such. Or at least, they take contracts (lightning) for ownership of an asset (BTC) in exchange for an IOU for the same. Kinda like early silver- and gold-backed dollars I suppose. So, then again, it may just be outright illegal on the basis that they are producing "currency". Or maybe it's no different than gift cards.
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