Hello, in this lesson we are going to talk about the electronic fund transfer act. You may also know it as the EFT a lot of policyholders and makers and politicians will call it e FTA. for short. So, first of all, what the hell is this electronic fund transfer act? Well, it is an act that was passed by US Congress and 1978 it was signed by signed. Can you get through feel in 1978 Hello, guess Jimmy.

Quarter. The president at the time, probably in my eyes, one of the only half decent presidents in terms of as a person, but okay, ignoring what I think of leaders. So yeah sign by Jimmy Carter and its sole purpose really was regarding right. And lawyer bilities of consumers, when they are using electronic means of transferring money, whether you're buying something, whether you're sending something, whatever it is, you're basically the rights that you have as a consumer, the liabilities that you may be held liable for, as a country. to map it also, it also outlined the risk bonds see with sponsee bilities play the face belly with bonds a billy teeth are have everyone including consumers, in activities that relate to a lek tronic fund transfers. So it's known as that the rights and liabilities of a consumer the responsibility that everyone has when they're partaking in some sort of money being transferred electronically.

So Locke said whether you're sending someone money, whether you're buying something, whether you're selling something, I'm receiving money As a result of this, and one of the reasons the EFT is so great especially for consumers, it helps limit losses for lost and of stolen cards such as you know, like a credit card, for example. So the exact sort of losses that can be avoided or limited for lost and stolen and caught depend on how long after the card was lost, and it was reported, so if you report it an hour later or 10 weeks later, the limit on the losses is different. If any, what's occurred any warm if any activity, the electronic Activity regarding money had occurred when you actually reported it lost or stolen, you can you can actually get away with not being liable at all if you report your fingers within two days and if there had been actually no transactions so you could just have a bit of inconvenience and actually not lose any money.

So this is great for consumers because things can get lost things can get stolen, identity threat of theft and fraud. So as a result, if you really powerful act that helps consumers and merchants alike as well. One thing it doesn't cover i think is worth mentioning. It doesn't cover automatic transfers because the theory an automatic transfer you instigated to Have lefay money come out to the bank every single month for something, you've done that that's fine. That's like a legit thing. But if it's just a one off, maybe somebody is trying to buy some for a pound or trying to withdraw money from your bank account, it helps protect against that.

But how does all of this relate to crypto? So, how does this relate to correct term? And this is actually a very, very interesting question because some people actually argue Some argue that Bitcoin is illegal and they say this Because it doesn't. It doesn't. Fully Boyd by FTA, whether that an exchange, whether that's a merchant or just the currency in general, such as obviously I've mentioned Bitcoin, but it's cryptocurrencies in general, because under under FTA and EFT a transaction transactions, Trump's actions should be reversible. So if you want to reverse a electronic transaction within a given time and I believe the given time if 30 minutes but the instant That time is pretty irrelevant for the concept that we're talking.

So only FTA if you transfer money or that a transaction occurred, you should be able to reverse it, Bond a Bitcoin. Bitcoin doesn't allow this because of a permanent nature and the ledger system. So this right here, if you're treating it as a currency and currency that is obviously only electronic and you are transferring currency electronically, then you can see why people would say that this is illegal because it's not operating on the E FTA. Some will argue, especially advocate of cryptocurrencies, that though it isn't fully boarding boy FTA. It doesn't need to because it's not a currency. They might say it is.

Something else entirely it operates or currency, but it isn't a currency. So that one argument for it, but some some argue it should be regulated the same as a commodity and some argue exchanges should be regulated financial In the tuition, some are saying it should be regulated the same way commodities are the actual currency should be an exchanges that facilitate transferring money exchanging currency to another currency should be regulated the same way financial institutions are so they should avoid by EFT. But one one thing I will say that is certain is the own certain T of this. And the reason it's so uncertain is because we're in a whole nother arena regarding currency regarding ownership, just regarding everything that we know about financial systems. This is nothing like what we've had before in any major way. So as a result, the old laws, this is something I'm certain about, is that the old laws will not be viable for the New Age whether that is it Bitcoin age and E for a dash Mineiro Litecoin age or some other coin entirely, even if it isn't purely crypto based, whatever it is, because it's going to be a whole new technology, the laws need to change.

So we've written update to the FDA, whether it's like EFT a two or EFT a plus, wherever it is, policymakers need to understand this and instead of clashing with the users and the developers and just the community in general for cryptocurrencies and blockchain based systems, you need to work with them and figure out what is the best course of action, because government's most likely are here to stay, at least for the foreseeable future. It's looking like cryptocurrency is going to be a major part of the next few years, especially next few decades of our planet and the economy. So we need to work together. So this has just been a really cool video on the electronic fund transfer act. If you have any questions, feel free to reach out. And as usual, thanks for watching, and I look forward to seeing you in my next lesson.