MasterCard Rails Against Bitcoin's (Semi-)Anonymity

angry tapir writes: MasterCard has used a submission (PDF) to an Australian Senate inquiry to argue for financial regulators to move against the pseudonymity of digital currencies such as Bitcoin. "Any regulation adopted in Australia should address the anonymity that digital currency provides to each party in a transaction," the company's told the inquiry into digital currencies. MasterCard believes that "all participants in the payments system that provide similar services to consumers should be regulated in the same way to achieve a level playing field for all."

Comments

Decentralization, do you speak it?

[Megane]

They should go after Bitcoin Inc. and force them to comply, amirite?

they must hate cash, too

[TheGratefulNet]

since that's the ultimate anon payment system.

of course, we know what's going on. they hate having to compete against another company.

poor babies!

Re:they must hate cash, too

[mjwx]

They require merchants to suck up the cost of accepting Credit cards and not allowing a company to charge more to cover the credit card merchant fees. Of course 'cash discounts' can be done but that's uncommon. Most places just suck up the %3 as part of the cost of business so anyone paying cash does essentially pay more.

First I'll say that this little gem in the T&C is illegal in Australia (and anywhere else with semi-sane consumer protection). Hell, even in the United States I've negotiated better prices with cash because of merchant fees.

But this rule does not discriminate against cash accepting businesses. Everyone who accepts credit cards has to pay, even if they have no cash facilities what so ever.

In fact, it helps businesses that do accept cash because they have a percentage of transactions that are not subject to merchant service fees so they make more profit by giving a slight discount meaning a business has no incentive to refuse cash.

I agree

[Charliemopps]

. "Any regulation adopted in Australia should address the anonymity that digital currency provides to each party in a transaction," the company's told the inquiry into digital currencies. MasterCard believes that "all participants in the payments system that provide similar services to consumers should be regulated in the same way to achieve a level playing field for all."

For the first time in my life I totally agree with the credit card industry!
Mastercard, please immediately start providing anonymous transaction services so we can level this playing field ASAP!

Re:I agree

[bloodhawk]

I'm sure they would like to, but they can't. Have you heard of something called financial regulations?

Can you cite a financial regulation that prohibits anonymous financial transactions? Since cash, bitcoin, and anonymous prepaid debit cards are all legal, I doubt if any such regulation exists.

I can, In Australia it is the financial transactions reporting ACT, meant to prevent money laundering and it is imposed on all financial institutions. As I understand it many other countries have similar financial regulations for both money laundering and "terrorism" finance tracking. It kicks in at various amounts.

Wait, a level playing field?

[Anonymous Coward]

I don't hear them complaining when it's tilted their way.

18-21% and higher interest rates? Obscene late fees on top the the obscene interest rate?

Yeah, I don't feel sorry for them. Not even a little bit.