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No, the financial sector is not a centralised system. There are multiple providers of financial services that compete in the market for customers. So it's fun
by lottin 5y ago
No, the financial sector is not a centralised system. There are multiple providers of financial services that compete in the market for customers. So it's fundamentally decentralised.
- g4zj 5y agoGiven that there are multiple providers of cryptocurrency network access services which compete in the market for consumers, do you also feel that cryptocurrency exchanges make up a fundamentally decentralized system?
- lottin 5y agoThe provision of cryptocurrency exchange services is also decentralised, yes.
- lowkey 5y agoExplain how banking is decentralized while also explaining the role of central banks, as well as the Bank of International Settlements. Hint: Traditional Banking is centralized.
- lottin 5y agoI have already explained how banking is decentralised. What part did you not understand or agree with?
- thebean11 5y agoAll USD flow from a single institution, the central bank. Other banks can create debt, but only with permission (the initial money supply) from the fed. You'd have to really squint to consider that decentralized.
- WastingMyTime89 5y agoI fail to see how the monopoly of the central bank on money creation affects in anyway the centralised or decentralised nature of private banking. It’s like arguing construction is a fundamentally centralised business in your local area because every builders buy their bricks from the same factory. It doesn’t make much sense.
- thebean11 5y agoBecause those "private banks" can only practice banking with the authority and funding that flows from the central bank. The structure is completely hierarchical.
- lottin 5y agoThis is factually incorrect. Evidence shows banks can operate without the oversight of a central bank and without a lender of last resort. It's more convenient and safe for everyone to have those, but it's not required.
- thebean11 5y agoA bank that isn't a member of the federal reserve by law needs to keep a portion of deposits in a federal reserve bank, so I wouldn't consider it independent from the fed.
- lottin 5y agoRegulations require banks to keep a certain amount of capital and reserves, and these reserves are typically kept in a deposit with the central bank, so that the regulator, i.e. the central bank, is able to monitor the reserves to ensure the minimum reserve requirements are met at all time. It's got nothing to do with centralisation. Businesses are subject to all sorts of regulations. Some are required to have fire extinguishers in their premises. That doesn't mean they are centralised.
- JohnHaugeland 5y ago> Explain how You have demanded six explanations in drive-by form of standard concepts from strangers in the last 24 hours This is the behavior of flat earthers and anti-vaxxers