This is from the inspiration speech by paypal co-founder Peter Thiel on the topic Virtual Money, Privacy, and the InternetWednesday, October 20, 1999
“We’re definitely onto something big. The need PayPal answers is monumental. Everyone in the world needs money – to get paid, to trade, to live. Paper money is an ancient technology and an inconvenient means of payment. You can run out of it. It wears out. It can get lost or stolen. In the twenty-first century, people need a form of money that’s more convenient and secure, something that can be accessed from anywhere with a PDA or an Internet connection. Of course, what we’re calling ‘convenient’ for American users will be revolutionary for the developing world.
Many of these countries’ governments play fast and loose with their currencies,” the former derivatives trader [referring to Thiel] noted, before continuing, “They use inflation and sometimes wholesale currency devaluations, like we saw in Russia and several Southeast Asian countries last year [referring to the 1998 Russian financial crisis and 1997 Asian financial crisis, to take wealth away from their citizens. Most of the ordinary people there never have an opportunity to open an offshore account or to get their hands on more than a few bills of a stable currency like U.S. dollars. Eventually PayPal will be able to change this. In the future, when we make our service available outside the U.S. and as Internet penetration continues to expand to all economic tiers of people, PayPal will give citizens worldwide more direct control over their currencies than they ever had before. It will be nearly impossible for corrupt governments to steal wealth from their people through their old means because if they try the people will switch to dollars or Pounds or Yen, in effect dumping the worthless local currency for something more secure."
Look at the economy and status of paypal in a developing country like India,Inflation is hurting each and every move the government wishes to make and interest rate are made to skyrocket to contain inflation, thus leading to loss of wealth, poor entreprenurship motivation etc, when it comes to paypal users are not allowed to topup thier paypal wallets any money obtained by any transactions should be credited to the user bank account within 24 hours..
In short a centralized service like paypal is restricted by the local governments
the dream was great, but paypal just was not the tool...
BITCOIN IShttps://www.youtube.com/watch?v=k9TNiwqxrDA
