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The Fed literally banned a full reserve bank last month: https://www.yahoo.com/lifestyle/crypto-bank-custodia-taking-fed-185612232.html https://www.yahoo.com/li
by someguydave 4y ago
The Fed literally banned a full reserve bank last month:
https://www.yahoo.com/lifestyle/crypto-bank-custodia-taking-fed-185612232.html https://www.yahoo.com/lifestyle/crypto-bank-custodia-taking-...
Also there was a narrow bank proposal the Fed banned in 2019:
https://www.bloomberg.com/opinion/articles/2019-03-08/the-fed-versus-the-narrow-bank https://www.bloomberg.com/opinion/articles/2019-03-08/the-fe...
The Fed and other regulators greatly fear banks that do not justify their overreach (and also make existing banks look bad)
- nerdponx 4y agoThanks. The Yahoo article makes it seem more like the Fed was opposed to the cryptocurrency aspect than the narrow banking aspect. But the Matt Levine writeup is more apt.
- someguydave 4y agoThe Fed always give all kinds of excuses but the real problem is that they are afraid that banks that can demonstrate that they are run-proof without government aid might outcompete government-backed banks.
- tekknik 4y agoOr, maybe, just maybe, you form healthy economies via the movement of money, and not by letting it sit in a box. You think that may be it since it follows standard, non-politically charged, economic theory?