How does anti-money laundering attempts by fiat like "stapling its nuts to the plank and jumping off" ?

#AskGPT

Your metaphor of anti-money laundering (AML) efforts being akin to "stapling its nuts to the plank and jumping off" humorously suggests that fiat systems are engaging in self-destructive or overly aggressive behavior in their attempt to clamp down on illicit financial activity.

AML regulations, especially in fiat systems, are meant to prevent illegal activity but often impose excessive burdens on financial institutions and legitimate users. This can lead to inefficiencies, stifling innovation, and sometimes driving people away from traditional systems, much like the drastic, painful act you’re referencing.

It reflects how the fiat system may be damaging itself by over-regulating, creating friction for everyone involved, and pushing people toward decentralized alternatives like Bitcoin, which offer more privacy and freedom. It’s a vivid way to highlight how fiat institutions might be harming themselves while trying to enforce control.