cryptobanking
It's like regular finance but much worse.
RWAs, cryptobanking, stablecoins, financial plumbing on open and transparent rails
0 reply
0 recast
1 reaction
@monteluna
Posting here for more vision.
Laws aren't really "vaguely written" to screw you over, but differed to agencies. That's how financial law works in the US. Some of us need lawyer friends and should read fun books on financial history. I don't agree with this stuff but we need to be aware of what we are fighting against, and actually learn why this was created in the first place.
US finreg law is designed to give agencies a little bit of leeway in interpretation because they were aware how fast technology and new financial products can outpace the speed of written laws. Also, congress is dumb so they differ this to financial experts in regulatory bodies that know finance. They make rules which are interpreted as "law", and we must follow them. This was explicitly designed during the 1930s because there were so many new scams and criminal activity, law enforcement couldn't keep up with ACTUAL criminals (mafias, ponzi scheme guys, real fraud, etc.). Stuff like wire fraud and money transmitting crime is deliberately vague to cover the wide range of new scams and fraud, as well as being a general catch all.
Before Gensler worked in the Biden administration, there are fun lectures he did. You should watch them!
If you don't like Coinbase following financial regulatory rules, use mainnet or a decentralized blockchain.
Again, I am shocked you guys are shocked.
https://youtu.be/4Kuc-Uon7jw?si=5RiwhD4prcuCuVvU
0 reply
0 recast
2 reactions
@monteluna
As a history of banking enthusiast, I find this new digital banking regime... different. We've hit a phase transition moment where people are asking in a roundabout way, "What is GDP for, and who is GDP for?"
Taxpayers have enabled Congress to create agencies like the Federal Reserve and the banking system to support a range of American interests, but as AI and technology come to the forefront, one of the goals is our country needs to be a leader in the space.
As with *every* historical phase transition in technology, the banking sector is tasked with providing low interest rate capital to those projects under the expectation there is a return on investment. It may not directly be loan repayment, but jobs for Americans or building out large capital intensive projects.
Also, with every historical phase transition (every single time to be exact), we get a merging of banks and industries. Typically this is seen as a conflict of interests as well as a huge risk and frowned upon, but there are examples like the Chinese Banking and Technology merger where they allowed large corporations to effectively usurp banks and grow.
If the banking sector grows with digital banks focused on providing capital to technology, is it necessarily a bad thing if the GDP returns on this cheap capital really do trickle down to Americans in the form of better outcomes, jobs, and products? Is it too risky if it generates monopolies and losses that American taxpayers bear the brunt of?
We are definitely hitting the point where we need to ask, "what are we doing this for and who is it for?" as most Americans are fed up with the status quo. History will tell if it was right or not, but the past shows it's usually 50/50. Many time, it just ends up being a short term negative with some spectacular blowups (late 1890s/early 1900s Railroads), but a longer term positive.
https://www.wsj.com/finance/banking/hobbit-inspired-startup-becomes-first-new-bank-greenlighted-by-trump-2-0-0d6075ef?
0 reply
0 recast
0 reaction
@monteluna
People should not be celebrating this nonsense, and usually TV shows of an industry that highlight it's ridiculousness in a comedic or tragedy sense means the public knows it's in a decline since the same public knows it's pathetic.
Seinfeld. (1990s lower middle class city living)
Ally McBeal. (2000s M&A law)
Silicone Valley. (2010s startups)
Many more cases. Many more to be soon. Crypto TV show coming soon.
0 reply
0 recast
3 reactions
@monteluna
"I think that's what this metals move is about. They're looking for sovereign reserve collateral."
https://www.youtube.com/watch?v=2zlZLPJLc0M
0 reply
0 recast
1 reaction
@monteluna
I'm genuinely shocked that people don't understand monetary plumbing and actually believe the European union has any power here.
The reason for this is 20% of the imports and exports of EU countries are denominated in US dollars. Some of this is trade between EU countries.
Theres this running theory that the EU can dump US bonds and spike interest rates, but the problem is that would destroy that 20% since a lot of it is financed.
The global US monetary system is designed to be a hydra and creep into every global economic participant. Killing it is way harder than you think, and if you try you will just destroy your own economy since it depends on external suppliers for goods. Unless your country can make everything it needs and wants internally, you can't just exit the dollar.
2 replies
0 recast
1 reaction
@monteluna
U.S. Dollar Stablecoins have the opportunity to do a really funny thing here...
https://x.com/tedpillows/status/2010769342032499005?s=46
1 reply
0 recast
4 reactions
@monteluna
You either die a relevant money system or live long enough to manipulate your interest rates.
1 reply
0 recast
2 reactions
@monteluna
"When a coordination layer becomes universal, it stops being just plumbing. It becomes leverage. Denial becomes a geopolitical instrument."
https://hackernoon.com/when-defi-turns-reputation-into-middleware
0 reply
0 recast
1 reaction