[HN Gopher] Payment processors' bar on Japanese adult content en...
       ___________________________________________________________________
        
       Payment processors' bar on Japanese adult content endangers
       democracy (2024)
        
       Author : thisislife2
       Score  : 127 points
       Date   : 2025-07-20 18:22 UTC (4 hours ago)
        
 (HTM) web link (automaton-media.com)
 (TXT) w3m dump (automaton-media.com)
        
       | kkfx wrote:
       | The fact we have PSPs endanger Democracy, because we could
       | technically exchange eCash P2P, there is exactly ZERO reasons to
       | keep up the banking systems, and banksters knows that well,
       | https://web.archive.org/web/20240213185758/https://www.cimb....
       | unfortunately people seems to be unaware of that...
        
       | Telemakhos wrote:
       | How is this a danger to "democracy?" The centralization of
       | payment processing under a surveillance-friendly network that can
       | debank people for socially unacceptable behavior was never on any
       | ballot. Instead, surveillance capability is a regulatory
       | requirement promulgated by governments that despise privacy,
       | regardless of which party holds office. The mistake here is in
       | thinking that there's "democracy" left to save.
        
         | dragontamer wrote:
         | > The game director's statement was most likely triggered by
         | the news that Manga Library Z is shutting down. The platform,
         | which has preserved digital editions of out-of-print manga for
         | the past 14 years, was initially pressured by international
         | credit card companies to remove manga that contained certain
         | words, and then abruptly forced to terminate all of its payment
         | contracts, leaving it with no way to secure revenue for its
         | authors. The cause cited for this was transactions involving
         | adult content.
         | 
         | -------
         | 
         | Japan is a democracy. And yet payment processors from another
         | country are powerful enough to bypass Japans political system.
        
           | landl0rd wrote:
           | Japan is reliant on use of those payment processors. Pretty
           | sure Line Pay, crypto, Rakuten Pay, etc are all viable
           | alternatives. I fail to see how a comic book site is at all
           | relevant to democracy because some processors don't want to
           | process payments for pornographic comic books.
        
             | dragontamer wrote:
             | You don't see how extra-legal foreign companies setting
             | country wide policy is a threat to the local voters?
        
               | landl0rd wrote:
               | It's not country-wide policy though. They aren't deciding
               | what people can and can't buy. They're deciding of what
               | they will or won't _facilitate the sale_.
               | 
               | The American pornography industry has solved this problem
               | by 1. recognizing that there is higher risk, like "oh no
               | honey that $5.99 charge from onlyfans on the statement
               | must have been fraud! do a chargeback." and 2.
               | recognizing that the optics of selling pornography are
               | bad and not everyone wants to assume what is essentially
               | an externality (bearing that optics cost) without being
               | paid extra for it. So there are providers that handle
               | "high-risk" payments like that. Or they take crypto.
               | 
               | One of the cool things about the fact that companies are
               | profit-seeking and really like making money, is that when
               | they turn down what looks like an opportunity to make
               | money you can be pretty sure it's for a good reason.
        
               | dragontamer wrote:
               | > American
               | 
               | What does this have to do with Japan?
               | 
               | The fundamental problem addressed here is that these
               | Japanese people, one way or the other, are complaining
               | about how our culture is influencing them. And your
               | response is to tell them to be more American?
               | 
               | Presumably speaking, the Japanese people would want a
               | Japanese solution here.
               | 
               | I don't live in Japan but I think I can at least get the
               | gist of this guy's argument.
               | 
               | > One of the cool things about the fact that companies
               | are profit-seeking and really like making money, is that
               | when they turn down what looks like an opportunity to
               | make money you can be pretty sure it's for a good reason.
               | 
               | Historically speaking, for profit companies of different
               | cultures misunderstand and even abuse the locals. Because
               | you know, profits to the foreigner and reasons that the
               | local doesn't care or even may be opposed to.
               | 
               | For the locals to feel threatened by that (and claiming
               | that democracy is at stake) is... Well, a trope at this
               | point. It keeps happening so we probably should be
               | sensitive to the gist of the argument.
        
               | landl0rd wrote:
               | It's a case study of how you can either work to assume
               | those costs and build them into the price of the product,
               | rather than being willfully blind and claiming they don't
               | exist or should remain externalities, and maintain
               | relationships with processors. It's also a case study of
               | when you can just bypass them and use other payment
               | methods.
               | 
               | This isn't an "American solution", it's an example of
               | ways around a problem with the industry.
               | 
               | I'm not sure how refusing business (which, if these costs
               | weren't real, would reduce "profits to the foreigner") is
               | supposed to contribute to "misunderstand[ing] and even
               | abuse."
               | 
               | I guess I can understand why they're sensitive, but they
               | have multiple homegrown sets of payment rails they can
               | use. If they want to use the foreign ones they can
               | reasonably accept that a large multinational is "less
               | Japanese" than the Japanese ones.
        
             | im3w1l wrote:
             | I think they could have used another alternative if they
             | were given a generous timeline to switch over. The lack of
             | this seems to indicate that the goal was to sabotage them
             | rather than an amicable separation.
        
       | ur-whale wrote:
       | The only thing that endangers freedom here is the fact that there
       | are centralized payment processors in the first place.
       | 
       | There's an existing cure for that particular disease: Bitcoin.
        
         | KennyBlanken wrote:
         | Tell me you know nothing about transaction overhead without
         | telling me you know nothing about transaction overhead. All the
         | blockchain currencies require orders of magnitude more power to
         | process a transaction compared to a debit or credit
         | transaction. Bitcoin is primarily used by governments (like
         | NK), hacker groups, and organized crime to launder money.
         | 
         | The solution is not blockchain currencies. European credit card
         | transaction costs are a fraction of what they are in the US
         | because US regulators just sat back and allowed Mastercard and
         | VISA to establish a duopoly.
         | 
         | In much of the rest of the world it's also possible to near-
         | instantly wire-transfer funds to pay for things, at negligible
         | cost. In the US, everything is forced to go through the federal
         | reserve, is expensive, and slow.
         | 
         | We are the laughing stock of the rest of the world. The banks
         | have tried to set up alternatives. Zelle is a good example, but
         | Zelle's most annoying problem is that you can only have one
         | account per phone number or email address.
        
           | nikolas- wrote:
           | > everything is forced to go through the federal reserve, is
           | expensive, and slow.
           | 
           | This isn't entirely accurate, there is a private clearing
           | house that supports instant payments in the United States.
           | 
           | https://www.theclearinghouse.org/payment-systems/CHIPS
           | https://www.theclearinghouse.org/payment-systems/rtp
        
         | kelseyfrog wrote:
         | The cure is worse than the disease
        
           | southernplaces7 wrote:
           | Really? Feel like specifying so in an informed and rational
           | way?
           | 
           | I mean, you claim a system of voluntary, consensual payments
           | that people can decide or not to use vs. formal channels
           | depending on their need for avoiding politically charged
           | bullshittery and financial censorship of all sorts is somehow
           | worse than... the long arm of major governments and their
           | corporate partners to restrict whatever they please for
           | whatever political reasons they please at any time?
           | 
           | Truly, the irrational crypto hatred by some on this site is
           | the stuff of idiot parody.
        
             | kelseyfrog wrote:
             | Really. The only good thing crypto has going for it is that
             | it is litmus test for unresolved anti-social
             | behavior[1][2][3]. Thus, it serves as a warning beacon to
             | avoid when engaging in the dating pool.
             | 
             | Unfortunately, this means it's also a contributory factor
             | in the male loneliness epidemic. Though, good luck changing
             | any actual beliefs and behavior on this topic.
             | 
             | 1. https://www.sciencedirect.com/science/article/abs/pii/S0
             | 1918...
             | 
             | 2. https://journals.sagepub.com/doi/10.1177/027623662412681
             | 22?i...
             | 
             | 3. https://cyberpsychology.eu/article/view/14475
        
         | corranh wrote:
         | Putting aside the question of whether Bitcoin is even useful
         | for transactions or if it's just 'number go up' technology,
         | Bitcoin processors don't let Businesses accept Bitcoin for
         | adult content either.
         | 
         | See e.g. https://support.bitpay.com/hc/en-
         | us/articles/115003105543-Ca...
        
           | numpad0 wrote:
           | You don't need payment processors to exchange Bitcoin, or
           | rather, the processors are P2P'd and compensated by code
           | enforced transaction fee. I guess those can be banned by
           | manually correlating wallet addresses with known "terrorist"
           | groups, but we haven't reached that stage yet.
           | 
           | The downside of not using commercial "off-chain" processors
           | for Bitcoin or most true decentralized cryptocurrencies is
           | that latency of a proper, classic, fully secure, "on-chain"
           | transaction is something like up to 15 minutes. At least it
           | was that much last time I looked at it.
        
           | drdaeman wrote:
           | Why would one possibly need a SaaS payment processor for
           | crypto? Unlike with traditional banking, running your own
           | crypto node and processing network transactions is not some
           | huge investment that one may want to offload to a third
           | party.
        
             | Muromec wrote:
             | To offload dealing with problems (technical and legal) and
             | risks to the processor. Like everything SAAS basically. If
             | they get hacked, it's not your money being lost for
             | example.
        
           | duskwuff wrote:
           | And on the other side of the equation, exchanges observe
           | where their customers' coins are going, and may blacklist
           | customers who transact with suspicious counterparties (like
           | coin mixers).
        
         | 6yyyyyy wrote:
         | Much evidence contradicts your theory.
        
       | gjsman-1000 wrote:
       | People seem to forget that most countries aren't down with "adult
       | content." Japan famously has censorship; while it's outright
       | illegal and censored online in India, Russia, China, and no
       | shortage of other countries. It's illegal on both sides of
       | conflicts - like Russia and Ukraine (possession in Ukraine by
       | itself is grounds for up to 3 years in prison). Some countries
       | like Australia permit it, but "extreme" content (aka anything not
       | "vanilla") is technically illegal regardless of the age of the
       | viewer. This is also _not_ necessarily based on religion: China
       | is officially atheist, Vietnam is as well, but both will put you
       | in prison for importing it. Ironically, it is post-Christian
       | countries that are most tolerant.
       | 
       | From the global stage, America is not some overly puritanical
       | country while everyone else goes along without religious purity
       | concerns. The big view is that the majority of countries censor
       | it or ban it, even democratic ones, with no religious motive
       | required. The Western world is the exception, but that's changing
       | in the UK, Australia, and now the US with age gating, payment
       | processor refusal, or other restrictions.
        
         | selimthegrim wrote:
         | Japan has censorship as a result of the American occupation.
        
           | gjsman-1000 wrote:
           | Correct; otherwise it would likely be illegal in Japan
           | completely, judging by the nations around them.
        
         | kanbara wrote:
         | japan has fully legal drawn porn of children and tentacle
         | beasts and whatever else, you just need small bars over
         | genitals and beasts. you can buy it in a bookstore anywhere
         | across the country freely, how is this not "down" with adult
         | content? weird take
        
           | gjsman-1000 wrote:
           | Last time I checked, you need an ID.
        
             | PaulHoule wrote:
             | I'm astonished though that people sell ero fan manga from
             | popular series at Komiket, like Sailor Moon (you know...
             | "I'm Usagi Tsukino, I'm 14 years old") [1]
             | 
             | [1] though there was the episode that didn't get released
             | in the US where she used a magical item to transform
             | herself into an adult so she could go in a bar and get a
             | drink
        
         | teitoklien wrote:
         | India's ban wasn't legislative, it was done by the supreme
         | court.
         | 
         | It has one of the most weirdest and also defacto the most
         | powerful supreme court globally by authority.
         | 
         | It can pursue its own laws, legislate them, overturn even laws
         | passed by supermajority in parliament if it doesn't agree with
         | it and thinks it's not what original constitution makers
         | would've wanted.
         | 
         | The Court can take up cases on its own (suo motu) without any
         | petition being filed. This allows it to respond to media
         | reports, letters, or social issues -- an almost unheard-of
         | power in most democracies.
         | 
         | I don't think indian society or gov should be blamed for
         | banning adult content, supreme court by itself passed the law
         | and gov didn't wanna contest it as they didn't feel the point
         | to spend political capital to reverse it.
         | 
         | India is the origin of kamasutra texts after all and isn't that
         | sex negative as you might think ( it has the highest population
         | for a reason)
        
           | gjsman-1000 wrote:
           | > India is the origin of kamasutra texts after all and isn't
           | that sex negative as you might think ( it has the highest
           | population for a reason)
           | 
           | I think you're making a mistake here. It is completely
           | possible to be appreciative of sex, and hate pornography.
           | Even in the US, "Feminists Fighting Pornography" was a
           | powerful cultural force for almost 2 decades.
           | 
           | Only in the Western world is "pro sex" = "pro pornography" in
           | most people's minds. Everywhere else, these are separate
           | issues, with pornography bans actually being from a pro-sex
           | cultural position (I.e. it shouldn't be commoditized online).
        
             | teitoklien wrote:
             | I know for a fact they don't hate pornography, i've been
             | around their culture. They banned it because the judges
             | felt like it.
             | 
             | There were no major protests to ban it, no government
             | ongoing policy, nothing. It was just done because the court
             | felt like it.
             | 
             | People were indifferent after that too, gov didn't even
             | comment, praise or shun the court. Life just went on and
             | people just used vpns, gov doesn't even care and doesn't
             | even enforce the ban outside of the 100 major urls and
             | domain the supreme court itself decided and never revisited
             | it.
             | 
             | India's supreme court is extremely unusual compared to
             | other countries, it's as powerful as the executive branch
             | if not more, the legislative branch have no say in electing
             | supreme court judges the previous judges elect the next
             | ones.
             | 
             | it just uses its power very sparingly out of fear that the
             | legislative branch might come after their powers if they
             | use them too much.
             | 
             | banning a few major porn sites, banning electoral bonds
             | (india's version of superpac), creating new right to
             | privacy laws without consulting the parliament (because the
             | court feared gov isn't taking digital privacy seriously
             | enough), legalise lgbt rights without any parliament input
             | as it felt it needed to protect those citizens freedoms and
             | rights to self identify and form their own families with
             | legal protection.
             | 
             | are some places where the court has used its ultimate
             | powers
             | 
             | I personally like India's supreme courts, they are
             | partially the reason why india is relatively stable
             | compared to other south asian nations. Overall they use
             | their super powers extremely responsibly and sparingly.
             | Accounting for both political environment and balancing it
             | against the long term interest of the nation's citizens
        
             | AnthonyMouse wrote:
             | > Only in the Western world is "pro sex" = "pro
             | pornography" in most people's minds. Everywhere else, these
             | are separate issues, with pornography bans actually being
             | from a pro-sex cultural position (I.e. it shouldn't be
             | commoditized online).
             | 
             | The general problem is that when pornography bans are
             | passed, they're characterized as being against for-profit
             | hardcore pornography, but then they're worded broadly
             | enough to also cover everything from sex education to
             | medical depictions of human anatomy to actual human beings
             | flirting with each other on the public internet with no
             | profit motive, and then enforced against any of those
             | things according to the whims of government officials.
             | 
             | Or worse, the law is written in such a way that it puts
             | liability on third parties who then aggressively ban those
             | things to avoid potential liability whether or not the law
             | should or would have been enforced against them.
        
           | abdullahkhalids wrote:
           | Pakistan also has had an extremely powerful supreme court -
           | though mostly acting on the behest of the military
           | establishment. It has the same suo moto powers. It has over
           | time effectively rewritten parts of the constitution, deposed
           | prime ministers on the shoddiest base, forced the parliament
           | to reverse parts of a constitutional amendment after it had
           | passed almost unanimously. One supreme court justice raided a
           | hospital at one point, to talk about acting like an
           | executive. Though that might be over now after a recent
           | constitutional amendment.
           | 
           | I am no legal historian, but I would assume this has
           | something to do with how the British set up the courts.
        
             | teitoklien wrote:
             | Nope it's not just power that builds decent stabilizing
             | systems but how people/their culture use that power.
             | India's unusual supreme court stabilises it from executive
             | overreach or other risks because its court judges control
             | their own elections and are far more liberal than indian
             | society or its politicians so it tends to use its extra
             | powers to stabilize rather than compromise the system.
             | 
             | I do agree what you said shows the risk of such systems and
             | powerful courts if created in a vacuum without considering
             | who'll control it.
             | 
             | Pakistan uses those powers to do the exact opposite of what
             | indian courts would ever do. Also it's also because in
             | pakistan military is an independent political actor that
             | serves its own interest unlike in India where military is
             | toothless and just operates on politicians diktats often
             | literally at times instead of following intent.
             | 
             | Indian courts also cannot execute on its laws or fund its
             | own budgets or laws. So even if it creates laws it only
             | does ones it knows that parliament wouldn't resist too
             | heavily and will actually enforce it for them to avoid a
             | constitutional crisis . Indian courts are deeply afraid of
             | ruling parties especially if they have more authoritative
             | leanings or are more organised.
             | 
             | In pakistan the military helps courts finance and execute
             | on stuff superseding the parliament which is why it's a
             | corrupting force. In India , parliament under union home
             | minister strongly controls over internal security matters
             | and the police forces with prime minister and his cabinet
             | controlling the military.
             | 
             | it's not because of british court system, british never had
             | such courts nor is it even a republic the british system is
             | more similar to a constitutional monarchy with a powerful
             | parliament.
             | 
             | India is a republic UK is a democratic constitutional
             | monarchy hence it's called a kingdom Pakistan is just run
             | by the military most of the time and by elected leaders
             | some of the time. so it's a system that oscillates between
             | dictatorship and majoritarian democracy (not a republic)
             | 
             | but yea supreme court cannot depose prime ministers in
             | india. india set its own checks and balances out of pure
             | fear of the consequences of what happened in pakistan. it
             | still doesn't fully trust its military to this day. out of
             | fear of pakistan's case and intentionally keeps regional
             | ethnic regiments to avoid the military from ever unifying
             | or working together.
        
         | kmfrk wrote:
         | Definitely going to be "interesting" to see what happens once
         | places like UK+EU commit to age verifying interent users soon.
         | 
         | * https://digital-strategy.ec.europa.eu/en/policies/eu-age-
         | ver...
         | 
         | * https://ageverification.dev/Roadmap/
        
         | Barrin92 wrote:
         | >Japan famously has censorship;
         | 
         | In Japanese culture there's often an 'official' layer of proper
         | behavior that in some sense is a pretense and in reality people
         | are much more free-wheeling, including in the adult sector
         | where Japan is pretty big globally, which is likely
         | understating it. The country is actually very sexually
         | liberated.
         | 
         | The pernicious thing is that the US and Anglosphere work
         | exactly the other way around, legally you can say anything but
         | it's the people who chase you around the globe and you have
         | Mumsnet and American soccer moms hound you across the ocean.
         | Which is a moral tyranny any dictator is envious of. The US was
         | the only Western country where Leon was censored, the actually
         | made like a 20 minute shorter version for the US market.
         | Censoring actual art, not just porn or slop, is foreign to
         | anyone in continental Europe or Japan.
        
         | to11mtm wrote:
         | > Some countries like Australia permit it, but "extreme"
         | content (aka anything not "vanilla") is technically illegal
         | regardless of the age of the viewer.
         | 
         | As a curious case, South Park: The Stick of Truth had a scene
         | that was censored in a few countries (Australia and Germany
         | among others) due to it's BDSM content...
         | 
         | I will also note the odd case back in the day of Germany having
         | such strict rules with violence/etc that many of the Command
         | and Conquer games had humans replaced with robots. [0]
         | 
         | Or even names of things. FF8 had 'nunchaku' changed to
         | 'shinobu' because nunchucks are illegal in the UK [1] and
         | "Castlevania: Bloodlines" for the Genesis/Mega Drive was named
         | "Castlevania: The New Generation" in europe (although that also
         | had a lot of blood removed).
         | 
         | > UK, Australia, and now the US with age gating, payment
         | processor refusal, or other restrictions.
         | 
         | But also, I should note that Australia has had fairly strict
         | laws on the book for quite some time and has a long history of
         | using Refused Classification when they get the itch, hell the
         | Re-release of Westwood's Blade Runner is RC. And unlike the UK
         | (at least for now) there's not the digital/import loophole [2].
         | 
         | [0] - My Austrian friend on IRC said that at least the voices
         | were really cool.
         | 
         | [1] - Perhaps someone assumed the whole world of FF8 was a
         | British Colony?
         | 
         | [2] - My understanding is that somehow downloads and
         | 'importing' never got covered in the law.
        
       | tptacek wrote:
       | We just had a thread on this; probably don't need to recycle 2024
       | stories for it.
       | 
       | https://news.ycombinator.com/item?id=44606184
        
       | xterminator wrote:
       | Each country central bank should have its own national payment
       | processing system. Why is this not a thing? Spain has Bizum, for
       | example.
        
         | bobthepanda wrote:
         | FedNow is relatively new for the US in 2024.
         | 
         | One thing to note is that by design, the US banking system is
         | very decentralized and that makes any sort of migration or
         | mandate like herding cats. There are 141 banks in Spain and
         | 4135 in the US.
         | 
         | US banks are generally not allowed to exceed 10% of deposits
         | through mergers and there are only three passing that
         | threshold; JPMorgan Chase at 15%, BofA at 14%, and Wells Fargo
         | at 11%.
        
           | evan_a_a wrote:
           | The EU has already figured this out with the recently passed
           | instant payments regulation [0]. As of 2024 are 5,304 banks
           | in the EU [1], so the number of banks really isn't an excuse.
           | The US banking system lags the rest of world by a mile,
           | because there is no will to force modernization.
           | 
           | [0] https://www.ecb.europa.eu/paym/integration/retail/instant
           | _pa...
           | 
           | [1] https://www.ebf.eu/factsandfigures/
        
         | evan_a_a wrote:
         | Bizum is for P2P instant payments and it's operated by a
         | consortium of Spanish banks, not Banco de Espana.
        
       | numpad0 wrote:
       | I don't buy that the attack on Steam was just some Australian
       | cult activist groups. This isn't one off event anyway. They're
       | just a distraction.
       | 
       | What's urgently needed is payment neutrality, like net
       | neutrality. It's absurd that the net was discussed more heavily
       | and way earlier than cash.
        
         | kelseyfrog wrote:
         | Why not? The celebrated it as their own success.
        
           | michaelt wrote:
           | There are also a lot of religious anti-pornography folks in
           | America, and with views on sexuality they are eager to impose
           | on others. I doubt the pressure came from Australia alone.
           | 
           | And there's a long history of people taking credit for things
           | they were barely involved with.
           | 
           | It would be an awful shame if free-speech-loving Americans'
           | anger at the action American payment processors towards an
           | American game distributor were diverted to some unreachable,
           | unaccountable group on the other side of the world.
        
             | gjsman-1000 wrote:
             | The majority of the world censors or bans pornography, not
             | just America. In Vietnam, China, Russia, Ukraine, just to
             | name examples, you can go to literal prison for possession,
             | not just pay a fine. Ukraine considers possession alone
             | grounds for up to 3 years. This is despite Vietnam and
             | China all-but-requiring atheism to run for positions.
             | 
             | I think this is sufficient to show there are plenty of non-
             | religious reasons to refuse involvement. Framing
             | pornography as a purely religious issue is a misdirection.
        
             | kelseyfrog wrote:
             | Who is saying that it was AUS alone? The signatories are
             | majority Australian then UK and one or two US depending on
             | how you count (UK working in the US).
        
           | numpad0 wrote:
           | I always wondered how it was like to live in 70s with bombs
           | going off in random corners of utopias and random backwater
           | fundamentalist groups claiming responsibilities. That journey
           | of mine is now over.
        
         | minraws wrote:
         | Wasn't Crypto supposed to solve this like a decade ago?
         | Genuinely curious, as a 20 something, software developer who
         | never understood why we don't have decentralized/globally
         | neutral payments/transactions systems like internet.
         | 
         | Though for most of my life internet has been getting more and
         | more centralized. At least everything outside of China is
         | centralized almost entirely in US these days.
         | 
         | Rather sad reality of things, but what can we do heh...
        
           | anon191928 wrote:
           | why we don't have neutral transaction has many reasons. tech
           | might not be there to scale millions of transactions without
           | central server.
           | 
           | other reasons are heavy payment regulations, human habits,
           | fraud, network effects and more. tech does not fully solve
           | it.
        
           | numpad0 wrote:
           | Transaction throughput is nonexistent for cryptos. The money
           | arrives when it arrives. Some frameworks within crypto solves
           | it by trusting known signatures skipping the oft mentioned
           | consensus building, I suppose that has its downsides
           | considering they're not so popular.
        
           | drdaeman wrote:
           | It was supposed to be a decentralized digital cash, but we
           | collectively turned it into some weird abomination. Nowadays,
           | if you say "crypto" people will think of investments, scams,
           | transfers that sidestep various sanctions and regulations,
           | risks - anything but a decent payment method. It's sad, but
           | that's what happened.
        
             | AnthonyMouse wrote:
             | Crypto was always a stupid name anyway because people
             | confuse it with cryptography. Come up with a different name
             | for the thing where you use it as a digital payments system
             | instead of a speculative bubble machine.
        
               | beeflet wrote:
               | cryptocurrencies involve cryptography
        
               | AnthonyMouse wrote:
               | To begin with, no they don't. They use hashing and
               | signatures, which are mathematically related to
               | cryptography and often packaged in the same libraries or
               | used together to construct cryptographic protocols, but
               | cryptography (literally "secret writing") is specifically
               | about making information indecipherable, which is the
               | thing cryptocurrency typically _doesn 't_ do.
               | 
               | More to the point, it's still misleading to call a ship
               | the water.
        
               | beeflet wrote:
               | This is an absurd definition of cryptography. Are you
               | going to say that zero-knowlege proofs are not
               | cryptography? Are pedersen commitments not cryptography?
               | Are ring signatures not cryptography (they use symmetric
               | cryptography internally)?
               | 
               | Asymmetric key cryptography is all the same thing.
               | Digital signatures are cryptography. The "secret" being
               | obscured cryptographicially is the information needed to
               | produce a verifiable message.
               | 
               | Your definition of cryptography might make sense to
               | someone more than a century ago, but the state of the art
               | has advanced greatly since then.
               | 
               | The reason why you define cryptography like this, is I
               | think political. For example, I am not sure you would
               | extend the same logic to cryptographic voting schemes.
               | Cryptocurrency is just another application of
               | cryptography to solve coordination problems.
        
               | AnthonyMouse wrote:
               | > The "secret" being obscured cryptographicially is the
               | information needed to produce a verifiable message.
               | 
               | That's the key, not the message.
               | 
               | > For example, I am not sure you would extend the same
               | logic to cryptographic voting schemes.
               | 
               | Isn't the purpose of a cryptographic voting system to
               | keep your vote secret?
               | 
               | > The reason why you define cryptography like this, is I
               | think political.
               | 
               | Yes, it's because people don't want things like end-to-
               | end encryption associated with scams, and they're not
               | wrong.
        
               | LtWorf wrote:
               | A "signature" is literally just encrypting a message with
               | your private key.
        
               | AnthonyMouse wrote:
               | It's _signing_ a message with your private key. The
               | message itself, unless separately encrypted (and which in
               | practice would be under a different key), is still
               | plaintext.
        
               | Muromec wrote:
               | That's how RSA works, but not how ECDSA works.
        
           | joseda-hg wrote:
           | You can engage with Crypto and to some degree it's been
           | normalized as a weird investment, but the minute you try to
           | justify usage in a more "normal" setting, to the public eye,
           | you're placing yourself alongside money laundering, drug
           | trafficking and Ponzi Schemes
           | 
           | Crypto's been associated with illegality almost since
           | inception, and that associations lends the power that be
           | carte blanche in ignoring or even blacklisting anything
           | surrounding it
        
           | xboxnolifes wrote:
           | > Wasn't Crypto supposed to solve this like a decade ago?
           | 
           | In a purely technical "I can send/receive payments without
           | worrying about charge backs or random middleman
           | restrictions", it has solved it. But it hasn't solved the
           | issue of having the vast majority of merchants accepting
           | crypto, the issue of crypto price volatility (or associated
           | risk of stable coins), or the friction/unreliability of
           | turning cash into crypto.
           | 
           | Particularly, the last 2 issues go hand-in-hand as an issue.
           | You can get around cash->crypto friction/unreliability by
           | only having to do it infrequently, but that exposes you to
           | the volatility of the crypto price.
           | 
           | And that's not even getting into the issues of crypto UX as a
           | form of common currency for the average person. It is _not_ a
           | simple process to know how you should create wallets, manage
           | your wallets, what information should you or should you not
           | expose, what networks can /can't you send certain coins over,
           | what coins should you be using, why are there hundreds of
           | different coins, etc, to not fall for scams.
        
             | AnthonyMouse wrote:
             | > But it hasn't solved the issue of having the vast
             | majority of merchants accepting crypto, the issue of crypto
             | price volatility (or associated risk of stable coins), or
             | the friction/unreliability of turning cash into crypto.
             | 
             | The price volatility seems like a red herring. If you're
             | using it as a _currency_ then you 're not holding it for
             | significant periods of time and the entire point is to make
             | it an automated process, so you're buying some
             | cryptocurrency for cash and then _immediately_ spending it.
             | How much volatility do you really expect in the timespan of
             | a fraction of a second?
             | 
             | Meanwhile the conversion _shouldn 't_ be a hard problem.
             | You have a service that allows you to buy cryptocurrency
             | with a credit card or bank transfer and then an app that
             | uses that service to buy cryptocurrency and transfer it to
             | a merchant that accepts cryptocurrency, and then any
             | merchants being unfairly targeted by the payment networks
             | can do that. And the cash to cryptocurrency service can be
             | operated by a different party than the app so the former
             | can't be assaulted for having the wrong customers and the
             | later isn't directly interacting with the payment networks.
             | 
             | I suspect the real problem is this: The chargeback process
             | for credit cards isn't compatible with _anything_ where the
             | merchant is delivering fungible goods to the customer that
             | they can 't feasibly recover if the customer was using a
             | stolen card or issues a fraudulent chargeback, and
             | cryptocurrency is one such thing. So then the service that
             | allows you to buy cryptocurrency with a a credit card gets
             | screwed, because customers issue a chargeback to _them_ or
             | use stolen cards on their service even though they actually
             | provided the cryptocurrency as promised.
             | 
             | Which is a huge existing problem with the payments system.
             | The payment networks dump the cost of fraud onto innocent
             | merchants and then lose the incentive actually prevent it
             | even though they're the only ones in a position to do it,
             | e.g. by issuing chip cards that could be read by any
             | ordinary PC/phone via open standards and therefore enable
             | "card present" transactions to happen over the internet.
             | 
             | And then if you expect cryptocurrency to solve _that_
             | problem, it can 't do that on the side of the transaction
             | where the cryptocurrency is the thing you're _buying_.
        
               | andy99 wrote:
               | > The price volatility seems like a red herring. If
               | you're using it as a currency then you're not holding it
               | for significant periods of time and the entire point is
               | to make it an automated process, so you're buying some
               | cryptocurrency for cash and then immediately spending it.
               | How much volatility do you really expect in the timespan
               | of a fraction of a second?
               | 
               | Maybe I don't understand how people use bitcoin but I
               | wouldn't call your description that of a currency but
               | more like a payment processor.
               | 
               | I want a _currency_ , e.g. USD to be stable enough that I
               | can comparison shop in it, quote prices to customers in
               | it, and hold some as "cash or cash equivalents" on my
               | balance sheet without undue risk from price fluctuation.
               | 
               | USD achieves this, BTC doesn't, which is assume is why
               | people are using the get-in-get-out model being mentioned
               | here of only holding it for as short as possible.
        
               | AnthonyMouse wrote:
               | You shouldn't be using _any_ currency as a long-term
               | store of value. Even if you want to be denominated in USD
               | and minimize risk, the interest rate on cash in a
               | mattress is zero and the interest rate on US treasuries
               | is non-zero.
               | 
               | Meanwhile the historical purpose of holding cash as
               | "spending money" (i.e. liquid assets) is from a time
               | before computers could allow you to keep it as actual
               | investments until the instant you do actually want to
               | spend it.
               | 
               | As for using it for pricing, things are typically priced
               | in USD because it's the world reserve currency, or in the
               | dominant local currency in a given country. That doesn't
               | mean that other currencies aren't currencies. Shops in
               | many countries will often accept both local currency and
               | USD even if prices are only listed in one of those, and
               | so what? Anybody can look up the current exchange rate in
               | real time on the internet. Why is it a problem to list
               | prices in USD and then accept that amount of
               | cryptocurrency (or Euros or Yen) at the current exchange
               | rate?
        
               | xboxnolifes wrote:
               | > If you're using it as a currency then you're not
               | holding it for significant periods of time and the entire
               | point is to make it an automated process, so you're
               | buying some cryptocurrency for cash and then immediately
               | spending it. How much volatility do you really expect in
               | the timespan of a fraction of a second?
               | 
               | That is the point of me mentioning that points 2 and 3
               | are linked. If you are only immediately purchasing crypto
               | and then using it for a purchase, your middleman risk has
               | moved from the payment processor to the crypto exchange.
               | Every purchase you make now relies on whether or not you
               | can make the exchange at the moment. Which is point 3.
               | 
               | The alternative is you make larger exchanges of money,
               | which means you need to deal with volatility: point 2.
               | 
               |  _If_ the price of crypto was stable (at least about as
               | much as any major currency), you could exchange much of
               | it in bulk, and delays in exchanging it back into cash
               | would be less of an issue. Even less of an issue if more
               | merchants accepted crypto: point 1.
        
             | beeflet wrote:
             | Cryptocurrencies are volatile specifically _because_ they
             | are used as a speculative investment rather than a means of
             | exchange. It is a self-fulfilling prophecy.
             | 
             | >And that's not even getting into the issues of crypto UX
             | as a form of common currency for the average person.
             | 
             | The conventional banking system is just as complicated and
             | less secure, yet people have adapted to its flaws. What's
             | the difference between FedWire and ACH? Why does it take
             | time for checks to clear, and why does it show that I have
             | a balance immediately? What are money orders? Why are banks
             | only open on weekdays when the entire economy relies on
             | them to function?
        
           | gryn wrote:
           | > Wasn't Crypto supposed to solve this like a decade ago?
           | Genuinely curious, as a 20 something, software developer who
           | never understood why we don't have decentralized/globally
           | neutral payments/transactions systems like internet.
           | 
           | because people like having the ability to dispute charges
           | when they get scammed. they also like the ability to access
           | their account by speaking to someone at the bank when they
           | forget their credentials. (the dude that lost his bitcoin
           | hard drive in a dumpster only recently gave up is search of
           | landfills) if you see all these crypto companies end up
           | creating layers that create shittier banks with extra steps.
           | 
           | that's also the reason payment processors don't like certain
           | fields like nsfw/sex work, gambling , etc because a lot of
           | fraud happens in them and therefore they cost more for them,
           | At least that what their stance is, and I have no reason not
           | to believe them because if you try to take online payment
           | that's what you will see with time when your platform get
           | targeted by shady individuals.
           | 
           | also governments like control. how do you freeze crypto like
           | you freeze a bank account ? their wet dreams is people to
           | stop using cash and only use electronic payments, that way
           | they can freeze your whole life with a single order. (the
           | official stance is to stop criminals, but they decide who get
           | designated as such. said something they don't like ? welcome
           | to the list)
           | 
           | to make thing worse, crypto has been almost exclusively used
           | for shady things like gangs money laundering, scams, etc.
           | 
           | and in the end the blockchain does not solve any real
           | problem. it's a technical solution in search of a problem.
        
           | kiicia wrote:
           | If you can get crypto currency, maybe yes in some cases.
           | Currently available currencies are not anonymous, but
           | pseudonymous. You can track who transacts with whom.
           | 
           | To help with that new laws were passed.
           | 
           | If you want to buy crypto for fiat currency legally, like on
           | some well known crypto exchange, newest laws require naming
           | recipient of crypto you are sending and if that wallet is
           | self hosted or exchange hosted (and which exchange). You
           | either need to provide full name of person or company, or
           | confirm it's your other account you are sending crypto to.
           | 
           | There is one actually private crypto, it's monero, but -
           | surprise - it's nor available on legal crypto exchanges so
           | you cannot buy it by any official means.
        
           | timbowhite wrote:
           | > never understood why we don't have decentralized/globally
           | neutral payments/transactions systems
           | 
           | BTCPay Server[0] seems to be the most popular way to accept
           | crypto payments on self-hosted hardware with no third party
           | processors.
           | 
           | [0] https://btcpayserver.org/
        
           | jgilias wrote:
           | The future is not evenly distributed. I invite you to install
           | Primal (a social network app), and send a 50 cent payment to
           | Jack Dorsey just because you can.
           | 
           | Can you let me know in this thread how it goes and what are
           | your thoughts after doing it?
        
           | michaelt wrote:
           | You can hear Steam's experience with bitcoin straight from
           | the horse's mouth here: https://steamcommunity.com/games/5931
           | 10/announcements/detail...
           | 
           |  _> transaction fees that are charged to the customer by the
           | Bitcoin network have skyrocketed this year, topping out at
           | close to $20 a transaction last week [...] The high
           | transaction fees cause even greater problems when the value
           | of Bitcoin itself drops dramatically._
           | 
           |  _> [...] the amount of Bitcoin needed to cover the
           | transaction can change. The amount it can change has been
           | increasing recently to a point where it can be significantly
           | different._
           | 
           |  _> The normal resolution for this is to either refund the
           | original payment to the user, or ask the user to transfer
           | additional funds to cover the remaining balance. In both
           | these cases, the user is hit with the [$20] Bitcoin network
           | transaction fee again._
        
             | ronsor wrote:
             | In practice, Bitcoin transaction fees are much lower
             | nowadays. I've never spent more than $1.00 in fees on
             | relatively large sums.
             | 
             | Besides that, there are other cryptocurrencies (Solana?
             | Stellar?) which have effectively zero fees and are much
             | faster than Bitcoin.
        
               | beeflet wrote:
               | Transaction fees are lower because no one really uses the
               | L1 network for commerce anymore. It goes back to the 2017
               | block size war.
               | 
               | >Besides that, there are other cryptocurrencies (Solana?
               | Stellar?) which have effectively zero fees and are much
               | faster than Bitcoin.
               | 
               | They are faster because they are not very decentralized.
               | The entry costs for vendors to independently audit and
               | verify payments the blockchain is greater.
        
               | Spivak wrote:
               | Are there currencies you would actually do something with
               | other than it being a way to move $local_currency by
               | means of exchanges? Because I'm not sure it really solves
               | anything when exchanges find themselves with the same
               | regulations as Visa.
        
               | beeflet wrote:
               | Yeah, you have anonymous cryptocurrencies like monero or
               | zcash.
               | 
               | So I suppose you could accept payment in an anonymous
               | cryptocurrency, and then take that to whatever exchange
               | you want.
               | 
               | It's flawed, but I think the end goal is to create a
               | "circular economy" based on anonymous currrency, so you
               | never have to cash out.
        
         | matthewaveryusa wrote:
         | All we need is fast ACH (seconds, even low minutes will do)
         | with no charge back. From there you can develop single-charge
         | ephemeral accounts and you're good to go. Sadly crypto will get
         | us there faster. It just speaks volumes that a pseudo
         | decentralized solution will beat the logical and easier
         | centralized solution because of misaligned incentives
        
           | daveguy wrote:
           | And then you can have untrackable and irreversible scams,
           | money laundering and ransomware without the crypto? Yay?
        
             | AnthonyMouse wrote:
             | "Transaction is irreversible via automated system" and
             | "transaction is irreversible via court order" are two
             | different things. The first is a problem when you have
             | merchants that legitimately provided a service (e.g. adult
             | content, buying fungible commodities that themselves can't
             | be clawed back) because customers issue chargebacks against
             | merchants that _didn 't_ scam them, e.g. because the spouse
             | disputes a charge for adult content that the person who
             | made the purchase doesn't want to admit to buying. But the
             | second is the thing you need to prevent scams and
             | ransomware.
        
           | jdietrich wrote:
           | We already have that in many countries. It doesn't change
           | much, because the vast majority of consumers prefer to use a
           | payment method that does have chargebacks and various other
           | consumer protections. As long as you have a majority of
           | customers who want to pay via Visa or Mastercard, then the
           | vast majority of merchants will need to accept those payments
           | and play by their rules.
           | 
           | https://en.wikipedia.org/wiki/Faster_Payment_System_(United_.
           | ..
        
             | AnthonyMouse wrote:
             | The premise is that the thing consumers want is
             | "chargebacks and various other consumer protections" but in
             | practice the problem is that those things are really hidden
             | costs, i.e. merchants have to pass on the cost of
             | chargebacks and fraud to honest customers. In a normal
             | market this would result in the merchants passing on those
             | costs to the customers who require a payment method that
             | incurs them, i.e. there would be a 5-10% discount for using
             | a different payment method, or more than that for
             | industries with a high rate of customer chargeback fraud.
             | 
             | But then the payment networks prohibit merchants from
             | providing the full value of the discount to people not
             | insisting on payment methods that impose those costs, which
             | ought to be an antitrust violation because it's obviously
             | uncompetitive to prevent an alternative with lower costs
             | from actually passing those lower costs on to the customer.
             | And then fraud is rampant, costs billions of dollars, makes
             | certain types of services non-viable, but gets folded into
             | the price of ordinary goods and services to keep ordinary
             | people from realizing that they're still paying it.
        
               | Panzer04 wrote:
               | Could not agree more.
               | 
               | Have never used a chargeback and wouldn't want that
               | ability in the vast majority of transactions. If I'm
               | buying something on steam I know what I'm getting and
               | they already have a robust refund capability regardless.
               | If there was a good alternative to CC I'd happily use
               | that.
               | 
               | I use cards because they're the defacto standard for
               | online payment, but that's the only reason.
               | 
               | (side note: This issue becomes more obvious with the
               | addition of the afterpays of the world, which charge iirc
               | 7% fees to the merchant but forbid them from surcharging
               | the difference)
        
         | bsder wrote:
         | > What's urgently needed is payment neutrality, like net
         | neutrality.
         | 
         | I thought the EU was working on digital cash? What is the
         | status of that?
        
           | Muromec wrote:
           | From what I heard It's a scaleup of Dutch IDEAL, which is a
           | wrapper around SEPA. End user scans a QR code generated by a
           | merchant with their bank app and everything magically works,
           | including sharing the address. Bank app shows the amount and
           | merchant name on the screen before approving and merchant
           | gets the confirmation right away. I having used
           | VISA/Mastercard network that much for years because IDEAL
           | exists.
           | 
           | Haven't heard about the EU version of it being anywhere in
           | the works and I work in places where I should hear it.
           | 
           | https://wero-wallet.eu/
        
         | averageRoyalty wrote:
         | I assume you're referring to this[0]. I had to go searching.
         | 
         | I do buy it. Collective Shout, Mad Fucking Witches and others
         | have all been trying to cancel media personalities and
         | companies for years by appealing to the advertisers, especially
         | effective in traditional media where they money is drying up.
         | They're hardly a fly by night group, and it's not their first
         | time appealing to payment processors.
         | 
         | 0. https://www.news.com.au/lifestyle/real-life/news-
         | life/400-vi...
        
       | LorenPechtel wrote:
       | No.
       | 
       | Democracy is endangered by the fact that the government likes to
       | use payment processors to stomp on stuff near the edges.
       | 
       | The dogs on the right rallies around when the government tries to
       | pressure gunmakers, the cats on the left don't rally around such
       | threats very well.
        
       | hnpolicestate wrote:
       | You will have better luck getting people to adopt Monero than to
       | get legislatures to pass payment neutrality. Same with
       | enforcement. The trend in Western democracies is less freedom,
       | more control, more surveillance etc.
       | 
       | Mind you, both odds are negligible.
        
       | draxter65 wrote:
       | The same payment companies are very happy to take payments on
       | porn sites. This manufactured outrage makes no sense. It's scary
       | what a rather small activist group can accomplish.
        
         | nine_k wrote:
         | Not at all. Square, Stripe, PayPal all outright refuse to deal
         | with anything porn. Visa and Mastercard put out severe
         | limitations, and (AFAICT) refuse to process payments to sites
         | like pornhub.
         | 
         | This is not only due to reputation risks (even though these are
         | real), but also because of the higher rates of fraud and
         | chargebacks.
         | 
         | I'd say that anything that by its nature materially hampers the
         | customer's ability to think rationally is risky for a payment
         | processor, because it will always be a fertile ground for fraud
         | and scams. Porn and gambling are obvious examples; alcohol is
         | another, but (strong) alcohol is usually pretty strictly
         | regulated, down to state-run monopolies in a number of
         | countries.
        
       | atleastoptimal wrote:
       | Other's have said this but it isn't a moral crusade by the
       | payment processors', but rather their capitulation to various
       | moralizing advocacy groups.
        
       | r33b33 wrote:
       | Just use bitcoin
        
       | hsuduebc2 wrote:
       | A handful of US companies take a cut from nearly every payment on
       | the planet, and now they're caving to pressure from Twitter mobs
       | and puritan lobbies, censoring global content just to avoid
       | upsetting shareholders.
       | 
       | Visa and Mastercard haven't brought anything new in years. Their
       | infrastructure still dominates out of habit, not merit.
       | Meanwhile, alternatives like stablecoins and European systems
       | like EPI or the digital euro are gaining ground.
       | 
       | Their boldness is honestly surprising, especially now that real
       | competition is finally emerging.
        
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