Quote from: teosanru on June 20, 2021, 07:06:27 PM

Quote from: fulcare on June 20, 2021, 10:48:39 AM

Quote from: teosanru on June 19, 2021, 08:36:04 PM

Quote from: PetraGold on June 12, 2021, 08:06:49 AM

My taughts:
There is little danger to the economy from banks serving as custodians and transfer agents for cryptocurrencies. Nor do I think that investment firms that make investments in cryptocurrencies for their clients is a risk to the economy

Please share yours🙏🙏

How can banks be transfer agents of Cryptos? Won't it defy the very essence of crypto itself? Crypto means when you need no custodian or intermediary, moreover what will the purpose of bank be? Instead banks might function as exchanges to help people buy sell different Cryptocurrency because this thing would definitely need any intermediary. Also bitcoin cannot be dangerous for any Economy, but yes it's implications on the economy as a whole will be very interesting to see as we have never been part of a system without any intermediary.

I am not sure if he meant it the way he said it but indeed if banks are supposed to work as custodians for decentralized cryptocurrencies we don't really need any cryptocurrencies in the first place! Tongue

The goal is to put a bank in everyone's pocket such that they can manage their own financial affairs freely and independently and privately. What needs to improve is security and usability on the level of the individual user though.

No actually, the problem you are stating here is a micro level problem. On a macro level problem is inflation and reckless printing of money to bailout financial institutions at all times. This is the problem that Cryptocurrencies are expected to solve, everyone has the right to manage their financial affairs already but the problem today is that they hardly have control over that because most of the money that you keep in your banks is eaten up by inflation. This is why some Cryptocurrencies, even if they are CDBC are needed.

Though we need to be careful that we still have the right tools in place to conduct activities in order to preserve financial stability. I am not saying that quantitative easing is great, but if we have only crypto with limited supply, how are we going to master theoretical financial crises that need a stimulus package? Monetary policy would completely change and the question is what it would look like?