Quote:
Originally Posted by AdultKing
Do you think that the investment in the movie Chris Mallick made didn't come from ePassporte ? That's what I call a failed investment.
Simple economic theory dictates that any financial service such as a bank, Paypal or ePassporte runs on a fractional reserve system. It would not be possible to operate otherwise.
|
That's quite bold, though popular assumption that epass funds was used for making of that movie, without any proof it's still only wild speculation, and even if true, it doesn't sound very legal move either.
Also epass is not a bank and doesn't NEED to operate under similar model, IF they get enough profits from other ways than interests. There are many much smaller ewallet systems and I'm sure they don't ALL run on fractional reserve system. Paypal might do so but they also actually operate as a Luxembourg-based bank in europe because of some laws involved.
Here's what Moneybookers, another big ewallet system says, should apply to other FSA regulated ewallets too:
Quote:
Key features of the regulation by the FSA include:
* Capital requirements & liquidity ? Our business is required to maintain minimum levels of capital. There is an initial and continuous threshold of ? 1 million own funds (approx £ 615, 000). We must also hold sufficiently liquid assets to be able to redeem all e-money issued and to meet our working capital requirements.
* Float Management ? There is a clear set of regulations on how we can invest the funds received in exchange for the issue of e-money; this is essentially limited to pre-defined low-risk and highly liquid forms of investment such as Zone A government bonds with short maturity.
|