3 ms·
Every developed country has banking laws. When those laws are applied to cryptocurrencies, all their current "advantages" disappear, and all that is left are di
by lern_too_spel 4y ago
Every developed country has banking laws. When those laws are applied to cryptocurrencies, all their current "advantages" disappear, and all that is left are disadvantages. This is coming everywhere, but countries that have the most resources to invest in figuring out how to regulate will do it first, and all the rest will just copy the regulations.
- manishsharan 4y agoNot entirely true. Open ledger, Ethereum contracts etc. could have banking applications. We just haven't figured out what. And this whole field of crypto is festering with "crypto bros" and their pyramid schemes. Applications that I could think of are loan syndication platform, collateral valuation ,auto adjudication etc. Note: I have no direct exposure to crypto and I working in banking (IT not business side)
- lern_too_spel 4y agoAll of those services can be done better without a permissionless distributed ledger. Use a traditional centralized database, and you can process transactions faster, iterate your product faster, and adapt to regulations faster.
- manishsharan 4y agoThe key word is "centralized database". This requires a trusted middleman to facilitate the syndication and manage the lifecycle of the contract. Blockchain could facilitate financial contract between parties without an intermediary.
- lern_too_spel 4y agoThe intermediary is the blockchain, which is more expensive and slower than the trusted centralized database.