For yet another time, I'd encourage every CEX user to just download Bisq and see how easy it is to trade your bitcoin there. No KYC, no shitcoins, no 3%+ trade fees, no data theft. Decentralized, permissionless, private and peer-to-peer, as it should.
~snip~
Everything you mention are great advantages over CEXs, but there's one thing you didn't take into account - and that's banks. If you use bank transfers for these types of transactions, then the bank has access to all bank transactions, and in my case, that means that the tax office, as well as the financial police and maybe a few other agencies, have access to the same transactions.
If someone can remove the bank from this equation, then there is almost a perfect way to trade with cryptocurrencies.
Right.
True decentralization is only possible if you don’t touch FIAT currencies. If you somehow wire some money to some other people, sooner or later the bank will figure out what you are doing.
At best, they’ll close your account because you were buying and selling goods on an individual account.
At worst, they’ll report you to the authorities for acting as a illegal currency exchange. (Add tax evasion to that too)
Since this is the FIAT/Government world we live in, we are only as free as they let us be.
One might try to survive on crypto alone without touching any FIAT/Banks but the gov is shutting these businesses too. It is pretty much over unless people riot and do crazy stuff like they did in the past during Renaissance.