Liberty Reserve Problems

The condition about Liberty Reserve becomes critical, the payment system does not work stable during the last several weeks. The last weekend the Liberty Reserve was unreachable again. According to user’s complaits, the site was inaccessible on March 07, 2009 in some regions, on March 08, 2009 the site became unavailable for everyone. There was no information about a reason of this downtime. Later LR’s blog was updated with the information regarding a new feature that will force every customer to change their login information every two months. But it doesn’t sound persuasive. Such updates can be coded offline and the script can be updated without such long downtime.

Liberty Reserve is ready to start accepting credit cards for direct funding of accounts. Liberty Reserve will accept Visa, Mastercard and American Express. Verification instructions required for users to be able to make purchases directly with credit cards will be posted on Liberty Reserve’s blog on March 15th. Also they prepare a web page where members will be able to place online orders for debit cards (only verified customers will be able to request the cards). The verification procedure for buying Liberty Reserve with credit cards and to request a debit card will be the same

It really good but at the same time some users criticize that LR refuses to buy its inventories back. This issue is very serious because at this time some exchangers are flooded with LR currency and need to get it outexchaged. Today such complaint came from a Singapore based exchanger.
The exchanger’s spokesman said that his company hade temporarily suspended all LR outexchanges until they “feel it is safe to carry on collecting more LR inventories from the public.”

So, why does LR refuse to buy its inventories from the exchangers? Its currency is not backed by any real cash? or  It doesn’t care for them anymore after having introduced direct deposits?