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Comment on SEC Charges Texas Man With Running Bitcoin-Denominated Ponzi Schemeparent

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Except the exchanges will be heavily regulated and required to record your identity, and converting them to A-coins will be illegal. Even if enforcement is spotty, one can't take the process for granted and the common view will be that A-coins are for criminals. Primarily functioning as a temporary medium of exchange for identity-based systems means it's only a matter of time until the ambient authority infects the system through the exchanges, imposes changes to conform to its view of the world, and demands respect as middle man and final arbiter. The only way to create an anonymous digital currency is to concurrently develop the anonymous digital economy.

Even if the government made conversion to A-coins illegal, they couldn't really stop it because they wouldn't be able to shut down the exchanges. It would be the same as P2P filesharing. It's technically illegal, and people do get identified and arrested, but that doesn't stop it. There are just too many people doing it, and there's no popular support for a crusade against filesharers.

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