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Only in Ecommerce Journal you can find questions and answers with J.P. May, the person whose name is inseparable from 1mdc.com’s earlier success, January 2008. Anyone who uses digital money knows that there is nothing more liquid than digital cash. Does that mean that the country whose citizens favor digital money should experience a faster economic growth? Not at all. Recent events with digital gold currency (DGC) of e-gold when many accounts backed up by gold were seized by the US government (pending the investigation of charges of money laundering, conspiracy, and operating an unlicensed money transmitting business) show that certain nations and political structures are not ready, properly equipped, interested in and therefore actively resist the inevitable evolution of money. The US government, for example, is not ready to deal with a variety of financial factors like taxation, interest and exchange rates, convertibility, inflation and supply which arise from the circulation of digital cash among the US citizens. But most importantly, the circulation of digital cash in the USA is considered to pose a threat to the national security based on the events of the 9-11 tragedy. According to the US Government digital currency can become a conduit for terrorists and other criminals to transfer large sums of money for carrying out illegal acts against the nation. That’s a pretty serious position and it looks like it will be the governing principal for the USA to continue fighting against untamed digital currency world. But what’s about the US citizens? What happened to the so well known fight for individual freedoms, equality and the right for happiness? What is the future of DGC in the United States of America? But what can be more interesting than to hear from the person who gave rise to one of the most successful digital gold currencies through the system it operated in, J.P. May – the creator of 1mdc.com and the owner of InterestingSoftware.com. He exclusively shared his thoughts with me on a variety of issues: Can you comment on the events of April 2007? JP May: “As you probably know in April 2007 the US Gov. seized some $20 million worth of e-gold, from dozens of different e-gold accounts. One of the many victims in that event was 1mdc. A small part of the total amount seized (I imagine a few hundred thousand dollars worth) was all the 1mdc gold.” What are the current situation and the future of 1mdc.com? JP May: “As far as I know the 1mdc site was kept operating for some 7 months after that so as to distribute the news to 1mdc users and so that users could get their records, etc. The last message up there for a month was that the web site would be turned off, and of course if any gold was ever recovered via legal efforts, it would come on again. Ironically, 1mdc had JUST started charging spend fees a few weeks before "black Friday". Prior to that it was run with no spend fees, to encourage people to make it popular.” What was your role in 1mdc.com’s success and DGC in general? JP May: “As you know my company supplied the software that was used. No big deal really. Regarding myself and the DGC universe, I now have no interest in it at all. I coined the acronym “DGC” in the early days and I have the first custom e-gold account number, but I have no interest now.” Are you planning to participate in any other DGC related ventures? JP May: “I will not be involved in any more DGC related projects. There is too much hassle due to the US Government's vendetta against e-gold. The fact that the three e-gold fellows are facing ten year jail terms is pure literal evil. We can only all pray that things work out OK for them. The world needs more DGCs. We can only hope for good luck for those who are trying to popularize DGCs.” Apart from what happened in April, what was the most difficult in creating and running 1mdc.com? I think it will be useful for others who look into DGC. JP May: “I did not create 1mdc. As you may know, I just did the software for it. In answer to your question, starting and running a "DGC" is fairly easy. The biggest problem is choosing the right jurisdiction for gold storage. You should talk to Robert at c-gold or Sidd at Pecunix about that. They both seem to be doing a great job. What stage of development is the DGC industry currently in? JP May: “I'm afraid I have no idea. No-one really knows why people use DGCs. For seven years it has been a total mystery. It is still a total mystery. Since the troubles of the last 12 months, it is surprising really that the DGC economy is still so vibrant. But e-gold is still doing great, 25,000 spends a day, making plenty of income in spend fees as you can see, http://www.scbbs.net/craigs/fencome.asp. People are still making money hand over fist in the DGC universe. Good luck to them.” What is the destiny of DGCs in the USA? JP May: “A big issue for DGCs at the moment is the USA question. As a DGC, do you allow USA users to use the system? My guess is that the future for the whole DGC universe is that it will be a "non-USA" universe. All USA citizens, residents and merchants will be excluded entirely from all DGCs. This will not happen overnight. The status quo will continue for maybe some years. But I guess that eventually the USA will be completely excluded from DGCs. But that's just my guess.” How does the future look for DGCs and the whole virtual economy? JP May: “Regarding the "virtual economy" generally, surely the answer is it will continue to grow very dramatically. Regarding DGCs, they are such a good idea; surely they will still be here in 10, 20 years. Like I say, the big "issue" at the moment is the USA question. Personally I think after a few years the USA will be "taken out of the equation" and all DGCs will entirely exclude all USA activity. But that's just a guess. That is a "big issue" at the moment for the DGC universe.” Anything else you’d like to add? JP May: “Personally I now dislike the web. I think we will look back on Wikipedia as the last straw. Unemployed people with beards trying to sound important acting as an information source. It's simply laughable. And the "new" web like "Facebook" which is a complete degradation of the human soul and intellect. On the one hand you have sex, fast cars, literature, culture, sports, philosophy, food, art, humour, clothes and architecture; at the furthest extreme opposite end of the scale you have junk food, and if you continue about 17 miles in the negative direction along that scale you come to "the new web." So, for me the web sucks now, I have little interest in it.” |