[cryptoz]

> If you want to use services that ignore what you can spend money on and what you can't, you literally have to use illegal services

Cash between friends is not illegal. Venmo, for lots of people including me, just replaces cash for paying your friends back. That's even their #1 example they have on their website for why you might use Venmo.

There is no agency or anyone in charge of asking what I'm spending the money on when I give my friend a $5 for lunch. If Venmo wants to replace that experience, they can't refuse the payment because they think I'm suspicious and expect to keep my business.

I understand the pressure they are under as a payment processor. But the alternative to Venmo to keep payment privacy intact is not illegal, it's just plain old cash.

[PeterisP]

Well yes, that's kind of the point - replicating this part of the experience of paying someone directly in cash is illegal. No matter what Venmo wants it can't replace that (part of the) experience and, more importantly, neither can any of their competitors. So you either keep using cash or (no matter if you pick Venmo or someone else) get a different experience.

Also, don't forget that above certain amounts cash between friends also needs to obey a bunch of reporting rules and can not be entirely private. Simply taking a briefcase of cash from your buddy and leaving it at that is illegal.

[ams6110]

Except it's not cash, even if it seems to be used like cash. It's an online transaction, which eventually becomes a bank transaction if you ever want to cash out, so not surprising the same rules apply.

[jlardinois]

In case it wasn't immediately obvious from my original comment, the issue was that "Cubans" is ambiguous and could be related to commerce that might be covered by sanctions against Cuba.