Could the Kiwi Farms become a payment processor or bank? - Thread brought to you by the Bank of England.

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Even if you had the money, the other banks / payment providers can at any point say no I don't want to deal with you and cut you off their network.
 
Realistically he's probably tech-savvy enough to make a crypto exchange that is redeemable for regular cash and deposits could be used as crowdfunding for the costs of creating a new bank.
 
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drfuzzyballs said:
Realistically he's probably tech-savvy enough to make a crypto exchange that is redeemable for regular cash and deposits could be used as crowdfunding for the costs of creating a new bank.
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Id Invest in KiwiCoin
 
Doing banking legally is full of impediments where the regulators say "You're not rich enough to do that". That million quid requirement is just the bottom level of it. It's bad enough that the rich already have an advantage in that you have to spend money to make money, then the regulators constantly butt in asking you to prove you're already rich enough to get rich handling money.

I'm not against it trying to do things like that, but that's something we need to be aware of.
 
drfuzzyballs said:
Realistically he's probably tech-savvy enough to make a crypto exchange that is redeemable for regular cash and deposits could be used as crowdfunding for the costs of creating a new bank.
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It would have probably been trivially easy to become a crypto exchange like Bitfinex or Xapo registered in unregulated bumfuck Asia offering easy banking options for Kiwibros. Xapo even gave out Visa debit cards that worked in EU once upon a time. All under the clever guise of crypto hype.
 
I once had a dream that there was a Kiwi Farms credit union. I think I might have posted about it in the Weird Dreams thread.

IIRC, it would take about $20 million-ish at the low end to start a bank in the United States. You could probably buy a small, struggling bank for cheaper.

A so-called neobank (not the best term IMO, since some neobanks actually have their own banking licenses) would also be cheaper, but comes with its own set of problems, namely that no financial institution would want to partner with the website that laughs at deviant weirdos.

I'm not sure how much capital is required to start a credit union, but I imagine it's less than a bank. There would still be plenty of regulatory hoops to jump through, though.

Regardless, I don't think it's a feasible idea. Kind of fun to think about though.

Doubly Punished Snigger said:
IIRC companies can either be a bank or never do banking. I remember walmart got into some hot water for trying.
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Eh, it's a bit more complicated than that. Walmart actually partially owns One, a fintech/neobank-type thing, which I wouldn't be surprised to see get its own banking license by the end of the decade. Industrial banks are also a thing in several states, Utah most notably, which allows companies not classified as bank holding companies to own banks.
 
Excellent idea I see no downside to this and can't wait to put all my shekels in the world's first transphobic bank
 
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