Category Archives: Interviews

Liberty Reserve – Interview with Mr. Joul Lee pt.2

(Q) Who would you consider to be your main competition and why?

There is no system quite like Liberty Reserve, which combines superior account privacy, excellent political jurisdiction, irrevocable payments, and state of the art security.

(Q) Are there any limits to how much money I can fund into a Liberty Reserve account? Are there any limits to the volume of transactions clients can perform?

There are no limits for regular accounts. However, because there are certain financial freedom restricting laws that passed or are contemplated in countries such as Australia and the United States, Liberty Reserve may, in some way, limit the volume, balance, or certain privileges (such as ability to gamble) of accounts of clients in those countries. Any such changes would, of course, be announced in advance, and at no time would Liberty Reserve freeze the value in any account for any reason except receipt of a legitimate court order.

(Q) Your information states that customer accounts all times 100% backed by U.S. dollars for LR-USD accounts and gold bullion for LR-gold accounts? Do you offer any audited balance information or do you have future plans to show monthly or quarterly how much is in the vault?

In the near future, Liberty Reserve will publish an independent accountant’s report, verifying the aggregate value Liberty Reserve’s assets held in trust for its customers, and matching that information to the total balances in Liberty Reserve accounts. This will occur without even the accountant knowing personal information in the accounts, only the balances.

(Q) How long has Liberty Reserve been a member of the GDCA and why do you feel that is important?

The Global Digital Currencies Association – – is the only industry watchdog that consists of voluntary members that agree to be bound by GDCA decisions during arbitration with customers and it allows customers to file complaints against members (and non-members for that matter). We are happy to say that we have no unresolved complaints at the GDCA.

(Q) I am now using Moneybookers and e-gold to accept client funds. Why should I try out or switch to Liberty Reserve?

Liberty Reserve is a true digital currency, completely outside of the United States and other countries that restrict personal financial freedom, including Liberty Reserve’s servers. e-gold cannot say that, and we see, in recent events, where that led to. As for Moneybookers, they are not a true digital currency because they do not allow, like PayPal, the free exchange of their “currency” with other digital currencies, and, like PayPal, they freeze accounts without any court order. This I can tell you from my own experience and the experience of others. Liberty Reserve is also a long-time member of the Global Digital Currencies Association, an industry watchdog that ensures that customers do not get cheated and allows users to file complaints and request arbitration.

(Q) Do you maintain any sort of directory displaying Liberty Reserve businesses and helping to promote agents and companies which currently accept Liberty Reserve?

Liberty Reserve actively seeks to promote any legitimate merchant that accepts Liberty Reserve. We have a directory where merchants that bear our logo may request to be listed.

(Q) Where is the server located housing the Liberty Reserve web site.

There is more than one site for the Liberty Reserve servers. One place is in Europe, the other location is secret.

(Q) How do your account and transaction fees compare with the competition?

Liberty Reserve has a maximum transfer fee of 25 cents ($0.25). For funding and outexchanges, the fees are set by the independent exchange providers. Currently, though, even the 25 cent fee is waived, so all internal transfers are free.

(Q) Opening an account I know is free at Liberty Reserve. How much does it cost in fees to operate the account and transact business?

The best way to answer this question is to give an example. We have a customer,, who agreed in advance to be mentioned here (and commensurate with our strategy to promote our merchants). They have been a Liberty Reserve client for years. They sell mostly electronics and other popular goods on the internet. They used to accept credit cards for a short while, which cost them about $500 per month based on their volume, plus another $1,000.00 or so in fraudulent charge-backs and other fees for a total of approximately $1,500.00 in monthly costs. After switching to digital currencies, including Liberty Reserve, their monthly costs amount to about $5.00, for a total cost savings of about $1,495.00 per month. As I understand it, they pass on these savings to their customers, offering discounts if customers pay via Liberty Reserve.

(Q) I see that you offer a type of transaction entitled, “Optional Anonymous Internal Payment”. Is this option popular with users? Why do you feel that is important to customers?

This was a feature that was requested a few years ago by a few customers that wanted additional privacy. For example, if you pay someone for goods or services with other digital currencies your account number is displayed in the history of the recipient of the funds. Hackers or other malicious individuals will know your account number. Also, it is a good idea for making anonymous donations to charity. At Liberty Reserve, using the anonymous payment feature, your account number is not known to the recipient of the funds. We, at Liberty Reserve, are always looking for ways to meet the demands of clients to enhance their financial privacy and security.

(Q) I did not see a ‘Liberty Reserve’ debit card. Do you have any plans to offer such a product?

Liberty Reserve’s business is making it the best, most secure, and trusted payment system in the world. That is our only goal and business model. We encourage exchangers and other companies to provide any collateral services that our clients may require, which creates many opportunities for Liberty Reserve merchants. It is a synergistic strategy.

(Q) For people reading this who want to earn money using the Internet, do you offer a paying referral program? If so, how do you pay the affiliates?

We offer one of the most competitive referral programs in the industry. Affiliates are paid instantly into their Liberty Reserve accounts. A two tier referral system is also in the works. Thank you for giving me the opportunity to answer your questions and inform your fine readers about Liberty Reserve. Joul Lee marketing(at)

–end of interview–

In case you somehow missed the first interview, here is a clue; it is right below this one :)

Liberty Reserve – Interview with Mr. Joul Lee pt.1

Liberty Reserve is a 100% irrevocable payment system and digital currency. Liberty Reserve customer funds are protected by an offshore Trust, and at all times accounts are 100% backed by U.S. dollars for LR-USD accounts and gold bullion for LR-gold accounts and Euros for LR-Euro accounts. Customer privacy, security and absolute confidentiality are top priorities for the management and staff at Liberty Reserve. Incorporated in Costa Rica this organization is also a long time member of the Global Digital Currencies Association.

(Q) How long has has Liberty Reserve been in operation?

Liberty Reserve (LR) started as a private currency exchange system for import/export businesses that was later open to the pubic as it became more popular. It is functioning publicly since 2001.

(Q) Let’s pretend I’m a new customer asking about Liberty Reserve. I’m thinking of adding it to my 60 online retail sales web and giving you a lot of new business. Please list some reasons I should add Liberty Reserve to my business plan & convince me I should be doing business with Liberty Reserve.

Liberty Reserve is a one-stop, all inclusive, merchant facility where any online business, no matter in which country situated, can accept payments from anyone in the world. Liberty Reserve has exchange providers that accept deposits in Europe, Asia, United States, Australia, Central and Latin America, etc., and the number of agents is growing. LR also does not compete with exchangers by running its own exchange, unlike other digital currencies. This way, 100% of all volume passes via independent exchange providers who have no fear that LR will steal their clients. All this, plus our low rates and superior privacy and friendly jurisdiction is why Liberty Reserve is growing so fast already. It basically sells itself by word of mouth. Within a month, LR will add LR-Gold and LR-Euro.

(Q) Can I buy Liberty Reserve digital currency directly from your Company web?

Unlike other digital currencies that have gone out of business due to fraud and the like, we do not accept such risks. Liberty Reserve is a trust that holds assets for the benefit of the account holders. That is all that it does. In order to fund or outexchange value from a Liberty Reserve account, customers need to use an independent exchange provider.

(Q) In my opinion, the most important qualities which define a ‘digital currency’ are these three items (1) All transactions are final. (2) Can be bought or sold through a third party independent agent. (3) Can be exchanged for other digital currency also by an agent. Does LR meet these requirements?

Fortunately, Liberty Reserve is defined by the above three criteria, with an added benefit of extra security and privacy.

(Q) Does Liberty Reserve offer a Shopping Cart Interface (SCI) or some way for merchants to integrate your payment system into their retail web sites?

Yes. Liberty Reserve’s SCI and API are one of the most advanced in the industry. Both API and SCI offer all necessary notifications via e-mail and/or over secure protocol.

(Q) I see your web site provides SSL as do all other financial web sites but what other technical tools does Liberty Reserve offer to protect clients while accessing their accounts?

After two years of development and vigorous tests, most of advanced security features of new Liberty Reserve are well integrated into our system on the programming level, and can not be disclosed for obvious reasons. Among a few that we can mention are: third generation dual login system, advanced geographical region identification, IP and browser lock, personal welcome message, and many more. Feel free to visit our web site for more information.

(Q) Does Liberty Reserve allow HYIP type ‘investments’ or auto surf programs?

Liberty Reserve does not “allow” any activity that is illegal in the users’ own location. However, it is impractical to monitor every account for signs of trouble (not to mention illegal in some countries and unethical and costly). Liberty Reserve management will never become judge and jury over what accounts are good and what accounts are bad. We respond only to legitimate court orders or where we have direct knowledge of activity that is illegal in Costa Rica or that is in violation of Liberty Reserve’s terms of service.

That is not to say that Liberty Reserve does not do anything to warn its users, before they open an account, about the dangers and/or pitfalls on the internet. To wit, we display this excerpt from our terms of service in BOLD for everyone wishing to open an account:

“2.4.3 User understands and acknowledges that user is aware that Liberty Reserve spends are irrevocable and that user agrees to follow the policy of buyer beware (”Caveat Emptor”) when using Liberty Reserve at various merchant sites, especially merchants such as gaming or gambling or “HYIP” and other types of investment or chance games or matrixes or Ponzis (pyramid schemes), which are identifiable by their promises of extremely high (more than 1% per day) rates of return, and that should user still wish to deal with such merchants that it is at user’s own risk.”

(Q) Do you have an Anti Money Laundering policy and do you actively work to prevent the use of your digital currency for illegal operations?

Liberty Reserve posts its rules and procedures in its Terms of Service. We comply with legitimate law enforcement requests for information (we do not comply with fishing expeditions, where some foreign government agency may ask for a list of accounts or other information without stating a specific reason and court order). We comply with the laws of Costa Rica.

(Q) How many independent agents currently transact in Liberty Reserve? Can I use a credit card to buy Liberty Reserve from any of these agents?

There are currently many agents that buy and sell Liberty Reserve, and I know that at least one of them accepts credit cards.

(Q) How do you keep Liberty Reserve client information private and protected?

All information collected by Liberty Reserve is encrypted and can not be decrypted without unique keys located on separate servers. In a very unlikely event, when even our server gets physically stolen, the information is useless without unique encryption algorithms and keys, which are located off site.

To Be Continued…Click here to read the second part of the interview.

Interview With Gordon Hayes Creator Of Phoenix Dollar Pt.2

Sorry folks but it appears that Phoenix Dollar is no more!

The second part of the interview with the creator of Phoenix Dollar. Enjoy.

(Q) If you had 10 minutes of face to face discussion time with each of your customers, what is the one single idea you would try to teach each one of them about freedom?

(A) hmm, that is a really good question and one that is not easily answered. I don’t believe that ALL customers can be fit into a mold that would relate to something I could convey to them in some generic sense of things. I think freedom is something best left to each individual to determine for themselves. If I could present just one idea, then I guess it would be that.

(Q) Is there an advantage to shopping for one ounce silver bars from your web site, over visiting a local coins shop and buying from them?

(A) I think local dealers have a market that works well and is useful. Our aim is to supply silver bullion products to that market. If you have a local coin shop that also sells bullion then it would be useful to show them our products when you shop there. When a dealer places a large order they can convey the savings on shipping to their customers.

(Q) Are you operating as a Money Service Business? Do you hold any other Federal or State regulatory licenses which permit you to operate?

(A) We are not operating as a money services business as silver is not money according to the law today. Nevertheless, we do understand that the digital silver currency can be used by criminals to further criminal activity if left unchecked, so we have implemented a full anti money laundering program, a customer verification program, employee training and customer education program that serves to keep our system free from fraud. The results of this is thousands of clients and zero fraud. We also do possess a MSB license from the jurisdiction of the USA even though our company is based in Panama. We feel a good anti money laundering program and more importantly a strong anti fraud and anti crime policy is essential to our success and essential to the security of our client’s silver. Our terms of service policy explains all this in greater detail.

(Q) I know that I can buy digital Silver online from at least one other company, GoldMoney, what advantages does the Phoenix Dollar offer over James Turk’s digital product?

(A) James is a wise businessman. His product has its place in the market and is valuable even to our customers. That being said, it has absolutely no resemblance to our product offering. Our focus is on actually holding real silver in your hand where it belongs. We enable the average person, even if not rich, to hold silver in their hand even after someone sends it to you in digital form. This is something that is impossible in other systems.

(Q) Do you ship overseas?

(A) Yes, we ship all over the world to all but a few countries found on the sanctions lists.

(Q) Over the past months, I’ve accidentally ‘bumped’ into about a dozen Phoenix silver buyers around the Internet. Often I’ll be chatting with someone and ask if they know your website and they will say, “Yes, just last month I purchased 100 ounces, aren’t they great?” or something to that effect. A lot of people I know are buying Phoenix products and using your services.

(A) This is hard to see from the outside, but yes, this “community” is built one person at a time through hard work and by doing what I say I will do time and time again for as long as it takes to gain the trust of others. I hold an extremely long term vision for this currency. I intend it to live on well past my own life. Explaining what the community is would be getting into the philosophy of human interaction. That is a topic best left for my forum. I have spoken about the concept of community and how it is affected by the money we use on many occasions and that can be found online if anyone cares to look into it. I am especially interested in how a currency affects a community. When I say the word community, I don’t want to leave the readers with the wrong impression. This is not a socialist/communist/Marxist/Leninist, or any “ist or ism”. This is simple individuals interacting and nothing more.

(Q) From the Phoenix Dollar web site, what are Reputation Points?

(A) When you send silver to someone they can say to the world: “Hey this person did what he said he would!”. This is based on the old adage: ‘Do unto others as you would have them do unto you’. If you follow this simple principle, your reputation will go up over time. If you do not, it will go down. When it goes down to -5 your holding is automatically suspended until we figure out what the problem is and find a solution. The goal here is to facilitate trust and provide the tools to help people help themselves. The better your reputation in the system, the more willing other people will be to do business with you. This promotes a positive experience for our customers and is also part of our anti fraud program.

(Q) The 10 ounce bars are my personal favorite. Can I buy 10 ounce Phoenix Silver bars now from your web site?

(A) Its not explicitly listed as of June 2007, but it will be by January 2008. If you mention it on the order and we have them in stock we will fill your order with 10 or 100 oz bars. They are so popular that we are almost sold out of our first minting without even adding them to the shopping cart. The word spreads fast.

(Q) What is the most popular size? What sells the most?

(A) Surprisingly it is our one ounce bars. We did a lot of research early on and everyone told us that the disk shape is by far the best seller, but this turns out to be false, so much so that we have had to remelt and remint disks into bars at one point to keep up with orders. Both are strong sellers, but the 1 oz bar is the winner here by about 2 to 1 even though I still prefer the 1 oz disk personally. I expect the disks to even out over the long term. The disks are more suitable to over the counter trade. Right now the market just wants to survive a dollar crisis and protect their existing wealth.

(Q) On the digital Phoenix Dollar holdings, what do you charge clients to store their silver?

(A) Its free for the first 300 ounces. After that we assess a 1% fee per annum.

(Q) I recently wrote a story on how e-Bullion account holder’s were exposed when logging in because of a lack of onscreen tools at the e-Bullion website. What sort of protection does your web offer to the digital Phoenix Dollar holding holders? Do you have an onscreen keyword some similar device(s) to protect against key loggers?

(A) Keylogging is easily rendered impossible if you use our pop up type pad found on the login screen. You can use this to click in your password and pin code since keyloggers cannot read mouse clicks.

(Q) What is the Phoenix Treasure Shop?

(A) This is what we call any minting issued outside of our standard bullion offering. A collectible limited edition silver piece would be considered a “treasure shop” item. It is also the pet name of the shop where you buy our silver online.

(Q) Do you keep client information in the United States? Where are the Phoenix Dollar servers located?

(A) Nothing relating to digital silver holding client data is kept in the USA. The company is based in Panama and the servers are located in Hong Kong. We address the risk of data breach as our number one concern in the current marketplace and make great efforts to ensure integrity of customer data according to our published policies.

(Q) I like digital money online holdings which I can instantly set up and use, not millions of dollars, but say $1000 or $1500 needs to be paid to me by a friend. Can someone open and instantly use a Phoenix Dollar holding without having to send in their life story, blood sample and government issued ID? What are the limits on ‘verification’ of an holding?

(A) No. We do not just let anyone setup a holding and go crazy with it. Our policy is currently to allow people to setup a holding for free for testing purposes to see if this is something that meets their needs or is otherwise interesting to them. Beyond that, we encourage identity verification which does come with a small fee. We do have limitations to these free trial holdings. You can do a very low level of business with them, but after certain limits, they automatically fail to work. We also have checks in place to limit holding structuring. This means any attempt to set up multiple holdings to circumvent the holding limitations will fail for all unverified customers. For those who don’t agree with how we do this, we recommend just ordering physical bullion. You can do that without obtaining a digital holding.

(Q) Will you freeze my holding like PayPal did for no real reason and keep my silver?

(A) No. I cannot speak for Paypal and their customers, but I have read enough to understand what you are talking about. This is something that cannot happen here. We have very strict policies that outline what is and is not acceptable. A good rule of thumb is this: If is generally accepted as illegal, then don’t do it in our system. If it is legal, then go ahead and have fun. If you breach our policies, then we can basically do whatever we want to, but that does not mean we are unfair and inattentive. Our goal is zero fraud. When we say zero fraud, we mean ZERO FRAUD. Any fraud that ever shows us in our system is dead on arrival. If we find a customer to be fraudulent then our policies allow us to confiscate their silver to remedy the problem and make things right with any “victims” we can locate. Common sense goes really far with us. You might want to know what that means and what we consider to be fraud, and I will tell you to read the terms of service which outlines everything in very specific terms.

(Q) Do you permit HYIP holdings or ‘autosurf’ programs?

(A) No. We will never allow this type of business. It is exactly the opposite of what we want in a customer.

(Q) If I wanted to purchase just 5 ounces today for delivery, what fees are you going to charge me over the spot price on 5 disks?

(A) .75 cents/oz + actual shipping fees. We do however discount for larger quantities.

(Q) Where do you get your ’spot price’ from ?

(A) It is based on the spot (ask) feed from

(Q) I understand that I can request the balance of my digital holding to be delivered to me in bullion bars. Can I send in some of my bars to fund my digital holding?

(A) That is called bailment. We do this, but only for our own silver. If it is our own minted Phoenix brand of silver, we will allow bailment. This ensures the silver in pure and ensures our purity guarantee.

(Q) Can I integrate the Phoenix Dollar into my existing e-commerce web site?

(A) We have something called the Phoenix Wizard which is a simple Q and A process that helps you create payment buttons that can be integrated with a website or an email system. We also have a well documented SCI (API) for programmers who are experienced enough to integrate directly without the helper tool.

(Q) Do you consider the digital silver holding holdings to be an ‘e-currency’?

(A) Yes. “e” means electronic, although I prefer the term “digital currency” Anything with the “e” stuck on it is just a marketing gimmick.

(Q) Digital users have a unique feature on their holdings known as ‘SafeLock’. What is that and how does it help users?

(A) I will defer to our website for the background explanation of this feature and then I will illustrate it:

Your silver can be secured by setting up a SafeLock® for the amount you wish to protect. A SafeLock® is like a digital safe with a time lock; no one can access the protected silver until the timer runs out, not even you! Your silver will be placed in a special administrative Holding, untouchable by anyone. You can set a lock timer by the minute, hour, day, and year. Once the silver is in the SafeLock, it will show in your SafeLock balance until the timer expires. This feature is useful for securing silver overnight, or while you go on vacation. Silver held in a SafeLock® is guaranteed safe from hackers and criminals who might attempt to gain access to your holding while you are away or through a phishing attempt. You may also use this feature to help you save silver over periods of time of your choosing.

So that being the case, this is a feature not found anywhere else. Its useful in many ways, but I can think of something not mentioned in the blurb. Lets say you are going to Los Angeles tomorrow and your husband is a drunk scumbag and you hate his guts and cannot trust him as far as you can throw him. He is a sneaky person and will stab you in the back, steal your money and go spend it on wine and women since your marriage is on the rocks. OK, so this extreme situation calls for real effective measures.

The Goal: Protect your silver at all costs, even from people who have full access to your holding. The solution: Move the silver to the safelock and set the time until your return from Los Angeles. Then it does not matter if he tries to steal it. Even if he has the password and gets full access to your holding while you are away, it is now impossible to steal the silver. This is a feature we thought out for just such a scenario. We have many security features that are unique to the market. The result is that we have never had a customer that has lost any silver to fraud, scammers, hackers or sketchy people who hold their holding details. This may sound fantastical, but it is true. No one can claim that but us. If you lose your silver using our system, it means that you are not properly using the tools provided to you as part of your free holding.

(Q) What tools do you provide digital Phoenix Dollar users to enable the use of your products?

(A) There are so many. We built the swiss army knives of digital metal currencies. You can do so much that I could not even convey it in an interview. I just encourage people to get a free holding and poke around in the system. I advise that you get oriented to the features before funding your holding.

(Q) Can I become a verified exchanger or distributor for Phoenix Dollar products and make it into a business?

(A) We have a formal process for that. We do not allow just anyone to exchange. Once an exchanger is verified they can add us to their offering. The location to apply is:

(Q) How much Silver do you have in your pocket right now?

(A) I always have a one ounce silver disk in my pocket for luck.

I’d like to thank Gordon for taking the time to answer my questions.

Interview With Gordon Hayes Creator Of Phoenix Dollar Pt. 1 of 2

UPDATE: Sorry but it appears Phoenix Dollar is no more!

Check out this interview conducted with the creator of Phoenix Dollar by Digital Money World.

The Phoenix Dollar was created in late 2005. The company is a silver bullion retailer offering their own brand of pure silver bars, disks and even digital silver holdings which is 100% backed by bars in a secure vault.

These accounts are free to open and the Phoenix Dollar community offers some exciting advantages and tools to those who would use the digital silver for online commerce. The digital silver is transferable between anyone operating a Phoenix Dollar Holding and there are several popular independent exchange providers who can assist you with a secondary market transaction. The digital product is exchangeable with other digital currency such as Pecunix.

Any user can easily have their silver balance (as little as one ounce) delivered right to their front door for just a few dollars over the spot price. The physical silver one ounce disks and bars are very beautiful and I happen to own several.

The bars and disks can be used as payment between any person as a method of barter. While some of these items may look like money, its important to note that The Phoenix Silver Bullion Products are NOT “legal tender” and NOT “current money” nor are they endorsed by any sovereign government, country, city or state. While the designs are great, both the silver and paper designs do not look like government issued currency. Paper designs? Yes, the company is soon offering SilverBacks® which is a series of Authentic Paper Silver Certificates. More on that below.

Today I’m interviewing Gordon Hayes designer, creator and operator of the The Phoenix Dollar.

(Q) Can you tell us your current position with the Phoenix Dollar company and how long has it been operating?

(A) I am the President. We opened to the public in October of 2005. The concept was in development for a couple years before that.

(Q) Who came up with the design for the silver bullion products? How about those new silver certificates?

(A) I have two very special artists that I collaborate with who shall remain nameless for security reasons. I create the concepts and they come up with the artwork for them. Sometimes I am able to pick a piece out of their extensive portfolio for certain things and apply them to the silver without any modifications. Having a high caliber art team has enabled us to exceed in designing silver pieces that never fail to win people over for their sheer beauty.

(Q) Out of all the successful businesses you have been involved with over the years, why did you create the Phoenix Dollar? What were your reasons for coming out with a private barter currency backed by silver?

(A) The world simply needs to know that what I am doing is possible. My ultimate goal is to create a currency that actually improves the lives of its owners. This would take a bit of explaining to get across properly, but to summarize, today we have a world that contains all sorts of fiat currencies. Not a single one of them have any real value except that which is derived from the end of a gun. I set out to build a currency that actually protects the wealth of its users, that improves how people interact and do business with one another and that creates more freedom and success in the world. This is the sort of philosophical background information that is not really necessary to know when using the currency. The results of using it speak in subtle ways.

Phoenix SilverBacks(Q) I have seen the pictures of your new SilverBacks® paper silver certificates which are now on the way. What do these certificates offer users that the bars and disks don’t already provide?

(A) This product conflicts with my personal beliefs to some extent, but its main benefits are that you can carry it in your pocket in quantity without being weighted down so much that you cannot walk. Silver bullion is very heavy and cannot easily be transported in quantity. The SilverBacks® address that problem thus enabling the currency to gain more use in the everyday over the counter market. I expect this product line to be a curiosity in the market for some time, but I am doing it anyway, just in case things rapidly change.

(Q) Your bullion products look fantastic.

(A) Thank you.

(Q) They also make fine gifts.

(A) That is right. I have a lot of feedback from customers who do use the silver items as gifts. Every time I hear a story like this, I feel very good about life. One customer was very recently married and all of the guests at the wedding received a silver bar as a gift. This shows a very distinctive respect for the guests at the wedding and I was very humbled.

Phoenix Silver(Q) Everyone I know loves to receive gold and silver. If I order some of the 1 oz. silver bullion disks or bars, do you ship them right away and are they in mint condition?

(A) Absolutely. This is what has made us successful. We have the fastest shipping times of any bullion dealer anywhere on the planet bar none. We ship within 24 hours for all orders on business days and all the silver is brand new, freshly minted and in perfect condition. I have heard horror stories of other companies who have 90 day delays. This seems to be very common. I am determined to take all their customers away from them and make them my own loyal patrons.

(Q) If I order 10 or 20 of the disks, can I have you ship them to someone as a gift?

(A) Yes we can. We do this as a courtesy for our trusted customers. There are some cases where we will not do that such as for people trying to launder money. It helps if you know us and it especially helps if you take the time to go through our verification process. We place a huge premium on customers who take the time to establish a personal trust based relationship with us. I can’t emphasize that enough.

(Q) Do you have a blog or a forum where readers can keep up with the progress of the Phoenix Dollar?

(A) We have a discussion forum here:

(Q) Regarding, the digital silver holdings, where is the silver bullion kept?

We used to think it was useful to disclose that data and did for some time, but we have since come to the conclusion that it serves no purpose to our customers to tell the world about our storage services. We have since changed things around a lot behind the scenes. Our current policy is non disclosure.

(Q) Is the Phoenix Dollar associated with the city Phoenix, Arizona?

(A) No, we are not endorsed by any sovereign government, country, state, or city at this time. The Phoenix is representative of the mythical Phoenix bird which is actually a hybrid of 3 animals and is metaphorically representative of the death of the old currency and birth of the new. Wikipedia has this to say:

The phoenix is a mythical sacred firebird in ancient Egyptian mythology, and in myths derived from it. Said to live for 500 or 1461 years (depending on the source), the phoenix is a bird with beautiful gold and red plumage. At the end of its life-cycle the phoenix builds itself a nest of cinnamon twigs that it then ignites; both nest and bird burn fiercely and are reduced to ashes, from which a new, young phoenix arises. The new phoenix is destined to live, usually, as long as the old one. In some cases of mythology, however, this is not true. The new phoenix embalms the ashes of the old phoenix in an egg made of myrrh and deposits it in the Egyptian city of Heliopolis (”the city of the sun” in Greek). The bird was also said to regenerate when hurt or wounded by a foe, thus being almost immortal and invincible — a symbol of fire and divinity. Tears from a phoenix can heal wounds.

The same properties found in this mythical creature are also found in silver bullion itself. It is a known fact now that silver ions contain disinfectant and healing properties. All this talk in the news about paper and metal coin currency carrying germs and such would be immediately rendered moot of we actually used silver in commerce.

(Q) What do you see as the most important difference between fiat money and silver backed Phoenix Dollars (barter money)?

(A) Where do I begin? Well you asked for the most important so personally I feel that the most important thing is that silver currency limits governments in their ability to create wars and act as an empire. If all the currency were based on silver and/or gold bullion, the idea of creating aggressive wars against non threatening nations would be over because to do so would immediately shrink the wealth of the attacker until they either gave up or became extinct. With the current fiat money, governments can just print it and keep printing it for as long as the people “believe” in its value. Thus, they can print enough to go to war. Silver currency would put a stop to that immediately and literally usher in a time of peace, but this is a world wide issue and it cannot be practiced on an island alone.

(Q) What are the benefits your silver products could bring to everyday brick and mortar commerce?

(A) If you have the choice to tell the truth and gain a prize, or tell a lie and buy some time which do you chose? Everything that is wrong with fiat money is solved by using commodity money. This idea spans so many things, but one simple example is purchasing power. When you use commodity money, its ability to buy something cannot be inflated away through the use of the printing press. If you print more fiat money, the prior existing money is reduced in its ability to make purchases over time and the people who are inclined to save and do the right things for their families are penalized. Commodity money, like silver and gold, maintain their purchasing power over long periods of time. I can illustrate this in a chart:

The 200 year long line in this chart illustrates your purchasing power when using silver and gold as money. In the early 1970’s the government removed the silver backing from money and the people are now literally in trouble, in debt and in what amounts to a crisis that is slowly emerging.

(Q) Is there any type of audit, either monthly or quarterly that you show your holding holders?

(A) We have redefined the concept of the conventional audit. We are audited by our customers on a continuous basis on about a 3 day delay. Since we ship and redeem physical silver within 24 hours on all orders, our customers are learning to trust that the silver is real and of the highest quality simply by continuously receiving it as ordered at their doorstep. I cannot conceive of any auditing system that would be more trustworthy that that. If we ever failed to deliver on a redemption or bullion order it would become a big deal real quick in the community.

(Q) I know that Phoenix Silver has become very popular with my friends and associates. Has the business grown as rapidly as you projected? More rapidly?

(A) The physical bullion aspect of the business has taken off faster than expected and the digital side is just as expected which is very slow and steady growth as we work to educate people about using this type of currency. Since we do not allow any grey/black market or investment type programs to use the currency the growth is slower that it otherwise would be. We believe that long term slow growth and a solid reputation are vastly superior to allowing just anyone to come in and use the digital currency system. As a result, we have a stable digital currency that people can trust and that has zero fraud.

(Q) Where do you see the price of silver going in the next twelve months?

(A) I see it catching a low at the end of August 2007 and never looking back for the next 5 years. I expect it to dip slightly under $11/oz USD and then its anyone’s guess. Personally I think $200/oz or even $2000/oz would not be surprising in the next decade. It all depends on how the US Dollar devalues. This can be done slowly over a decade or the fed could lose control over it and it could be a sudden worldwide collapse. For now, they are doing us a favor by manipulating the silver and gold markets and keeping the prices down while slow landing the US Dollar. This cannot last forever though. The time bomb is ticking on the US Dollar and they know it.

(Q) I read the mission statement as listed on the Phoenix Dollar web site. Here it is again for readers:

* To protect wealth through quality bullion products.
* To provide the fastest bullion services and design beautiful bullion products that people will be proud to own.
* To promote and teach freedom in the course of our business

How can owning Phoenix Silver bullion protect my wealth from being eroded?

(A) The value of silver bullion is not based on fiat dollars. It is based on some weight in ounces of a commodity that has had a steady and low supply rate in the market for a very long time. Thousands of years. Once you convert to silver, your wealth cannot change since it becomes based in weight and not fiat dollars which is not an accurate measurement of anything. So once you store your wealth in a commodity the only way to reduce it is to physically shave or cut off slivers of the metal. What people perceive as a change in value in the market price of silver is actually an illusion. What is changing in reality is the value of a dollar against the weight of silver. Over time, the fiat dollar value always trends toward zero at your expense.

to be continued…

Interview with AlertPay CEO, Firoz Patel

Thanks to NoBS Blog for the following e-mail interview with Firoz Patel, CEO of Alertpay.

—start of quote —

Hi Firoz, thank you for taking your time to answer our interview questions at No Bullshit HYIP Community Blog.

When was AlertPay established? Is there any specific reasons why AlertPay was started at that time?

AlertPay was established June 19, 2005. Actually it was conceptualized and developed during a full year before launching.

How many users does AlertPay currently have?

I can say that AlertPay is growing at a steady rate of about 300 new members daily and at this time we are little less than 1 million users. Most of our new members are referrals from current members and come from our affiliate program.

Does AlertPay allow HYIPs and autosurfs to work as a payment processor? If yes, what kind of restrictions does AlertPay has on those?

AlertPay allows all legal businesses in using its services. We have no problems with HYIP or autosurf businesses as they are not illegal. Only certain fraudulent HYIP or autosurf where the
admin is trying to defraud AlertPay and its users, we restrict them or suspend them from using our services.

We have taken strong measures in getting money back to those who were defrauded from administrators whose goals where to steal money without providing any for it. To date, our
members are very happy with the results.

How many different funding options does AlertPay has and what kind of fees are we expecting when we are doing any inexchange, outexchanges and transfers?

This is one of the benefits, because AlertPay has many different funding options. All the fees are found on our site at

For funding (deposit) your AlertPay account we have money orders, bank wires, bank transfers, credit cards, and cashiers checks. Soon we will also accept BillPay, and open up our services to European for bank transfers as well.

As for Withdrawal options, we offer traditional check, bank transfers for US and Canada. But soon as we add all of Europe clients may also withdraw to banks there. I shouldn’t mention this but we are adding AlertPay Debit Cards into the options this year (late summer maybe?!).

Does Alertpay incorporate any kind of verifications for customers when they use your service (eg. ID verifications)?

AlertPay does rigorous photo ID verification and address verification for its members who are flagged. The flagging is done randomly but we feel that we have either eliminated fraud or have extremely controlled it.

I see Alertpay is based in Canada. What currency are the accounts denominated in?

AlertPay is based in Canada, but is an international company. With its business licenses in Canada, US, and Europe, we must grow to retain all the major currencies. Soon we will no longer be restricted to accept US Dollars, and CAD Dollars, as we add on Europe, Australia, Singapore, Malaysia, South Africa and Hong Kong, we will also carry the currencies of these specific regions.

Does Alertpay have an AntiMoney Laundering policy?

AlertPay has an AML (Antimoney Laundering) policy which is required by the laws of Canada and United States. Since we do business in both of these countries, we abide and comply with the laws of these countries.

Does Alertpay has any unique features which stands out on the market compared to any other Digital Currencies?

AlertPay is not a digital currency. AlertPay is a payments processor. AlertPay does all its business directly with all the providers, unlike other processors. Alertpay has direct services with Banks for Bank Transfers (ACH in USA and Canada) and European bank transfers, Credit Cards, Check clearing and issuance, Debit Cards, BillPay, etc…

As well, AlertPay is on the side of all members. That means members who are merchants can count on AlertPay in NOT freezing their accounts without reason unlike other Payment
companies. AlertPay treats all of its members with courtesy and professionally.

I don’t see any mentioning on debit cards. Does Alertpay has one for customers?

AlertPay has negotiated with a bank on issuing debit cards. We have had this agreement completed since early 2007. However as AlertPay has many other development projects, Debit
Cards have been pushed to be released later this year, possibly late summer.

Which is Alertpay’s main competitor and why?

I am not sure which is AlertPay’s main competitor but we feel that we are going off in another direction in the industry. It is difficult to compare companies since all have their own niche in the marketplace.

I’m sure Alertpay has heard of EMOCorp and what actually happened to it. Does Alertpay has licenses in all states of the US, like Paypal to do businesses with US Citizens? (You can check out this url as well:

AlertPay is a Canadian company located in Montreal. This issue was brought up time and time again. As a Canadian company we must be licensed in Canada. After speaking with the OSFI (Office of the Superintendent for Financial Institutions) they told us that we are not required to register with Canada’s banking laws.

We are already regulated in Quebec by the IGIF (Inspector General of Financial Institutions). New regulations are coming out this year which will include licensing and regulations.

As for what happened to EMOCorp and any others, these companies had to be licensed since they were located in the US doing business in their own state as well. AlertPay will need to get licensed in every US state that requires it, but for now, we do not need to for 2 reasons.

1. Either it is not required since we are not located in the US and/or
2. We are not doing enough business in the particular state and there are minimums before even applying for a license. For now we are compliant with Fincen (in USA) and Fintrac
(in Canada) which governs and regulates money laundering and suspicious transactions.

Remember one thing, AlertPay is here to stay and grow to become a very large financial services provider and payments processor. In some cases, we do meet the minimum of millions
of dollars of transactions required to simply apply for a state specific license. We will get licensed as we fulfill the criteria of becoming eligible for licensing.

Do you have any views on the recent Egold indictment case?

Yes actually. Egold brought this upon themselves. With their lax rules and controls, their system was being used for all kinds of fraud and money laundering. I think that Egold should be split up into 2 entities.

One for the issuance of Egold as ecurrency and the other to control the transfers and transactions. If they cannot do that, then there is no point in having Egold anymore. The rules on the international marketplace are changing greatly. There needs to be controls in place to stop thieves and criminals from using these services.

Also there must be controls in place for thieves to be frozen or punished when a complaint is given to Egold. Since they don’t care about what happens with the Egold, some legitimate people get fraud monies, but many illegitimate merchants are able to get away with murder (figure of speech).

We have lost money as well in the process, but we have never allowed that to affect our members.


Since our launch in 2005, AlertPay is maintaining a calculated growth; learning from experience, improving its methods and continuously innovating in the industry. We are now used by close to 1 million users worldwide, because of our dedication to insure:

· Security and identity protection for all our members;
· Fraud prevention;
· Intelligent customer support;
· And useful services, including our series of personal and business tools.

AlertPay is a unique payment processor, and is distancing itself from the competition with services never before offered, for example:
· We are offering a wide variety of account funding options;
· AlertPay Debit MasterCards are being introduced to our members;
· We process transactions in multiple currencies
· We are developing services in Europe and other regions of the world.

Thank you for your time Firoz ;)

—end of quote—

Part2 – Interview With Independent E-gold Exchange Agent

Continuing interview with Sylvain Falardeau a Canadian Independent exchange provider for e-gold and Pecunix. Prt. 1

(Q) What other services do you think digital gold users would use if you could offer them? Reoccurring billing such as subscriptions? Gold transfers to a Visa or MasterCard debit card? Sending a Western Union using gold currency? etc.

We may offer other way of transferring from fiat money to gold in the future but the thing that is important for us is automation (at the programming level). We are not staffed and do not plan to offer a service like other exchangers (multiple payment options) because most of them are difficult to automate (like bank drafts). It only takes 5 to 10 minutes in the morning to process all the transactions and have to stay in this range to think one day to be profitable.

(Q) I’m not that familiar with banking in Canada. When you accept digital gold and make a payment to a client’s Canadian bank account…is this faster than other methods such as wire transfer? How long does it take, if a client sells today, when would that balance appear in an RBC account? Is the fee for this operation more or less than a domestic wire transfer?

Direct deposit and withdrawal in Canadian bank accounts is slower than a wire transfer but much cheaper. Depending on banks, a wire in Canada can cost from 10$ to 20$ to send and 5$ to 15$ to receive. We cannot allow 10$ transactions at 0.35$ with these bank fees. Direct deposit is the same as your electronic paycheck, there is no fee to receive it (not counting the number of transactions per month you can do in your account).

(Q) Do you have any new products on the horizon from

We may accept e-bullion in the future and allow “redeem” (digital gold to bullion). No date is planned for these two features.

(Q) Do you have a stated Anti Money Laundering Policy? Are you required to have one in Canada?

We have a service agreement which prohibit using for criminal activities. We do not deal with really big transactions and all deposits and withdrawals appear as XGOLD.CA in your bank account. So if you want to launder 1M$, you will have to deposit it in your bank account first and do Bank to Gold transactions (with limits from 300$ to 5000$ per month). Not very interesting for criminals.

(Q) What sort of requirements do you have before a client can transfer funds from his Canadian bank account? Would they fill out a form or provide ID? What is needed for a new client to get started today?

To activate the Bank to Gold option, we ask for a signed form with a void check for every source bank accounts. The form identify the e-gold and Pecunix destination accounts. You are only allowed to transfer FROM these bank accounts TO these gold accounts. You are then limited to 300$/month for the first three transfers. After this, you can ask for an increase in your limit but we may ask for other IDs (passeport, utility bill, driver license). Our system is designed for regular buyers who like the simplicity to buy gold at a specific rate that will not change the time the money get to us.

(Q) Do you have a personal preference, e-gold or Pecunix? What percentage of your business is Pecunix and what percentage is e-gold?

I personally prefer Pecunix because of their security perspective. We have more than 90% of our business with e-gold. That may change with the current events with the US government.

(Q) If the e-gold operation, by some fluke, is soon closed, will your business continue to operate?

We will continue to operate with Pecunix and may add another gold currency to replace e-gold.

(Q) The digital gold currency industry, do you feel as an ‘industry’ it could use improvement in any area? If so…where?

I think more merchants accepting gold and silver currencies is the key to success. The problem is always how to get merchants to accept many currencies. If a merchant accepts a gold currency, it is generally e-gold. If you have Pecunix, you should exchange it to e-gold first to be able to use it with the merchant which is irritating to new users. And even if you can convince a merchant to accept one gold currency, trying to setup five can be a great challenge.

This is the reason we launch, the complement to It allows merchants to accept three different currencies on their website: e-gold, Pecunix and Phoenix Dollar (and 1mdc, but will not be accepted in the future). We plan to add more payment systems but not necessarily metal backed. Our goal is to implement Money Proxy on high profile sites with different business lines. It will leverage the use of gold and silver currencies and allows users to use it more like money instead of long term investment.

The Money Proxy merchant account is gold denominated. It is transferred to e-gold or Pecunix merchant’s account every day. It can also be exchanged by and deposited in a Canadian bank account every week automatically. So even if a merchant do not want to maintain a gold balance, it can use our service to get more customers.

We are currently in beta test with (a Quebec version of the Canadian Taxpayer Federation, and, a fax to e-mail service. We plan to implement other new merchants this summer before officially promoting the service.

(Q) Is a member of the GDCA (Global Digital Currency Association)? Has membership to that industry association helped your business? If so…how?

Yes, we are a proud member of the GDCA and a Pecunix PREO. The GDCA offers us visibility and credibility. Some new users contacted us to have some reference and we sent them to the site.

(Q) How much gold do you have in your pocket right now?

I carry one once of gold when I know I will meet new people during the day. It is always interesting to see their reaction when they see it for the first time.

– I’d like to than Sylvain for taking time to answer my questions.