Tim Bouma on Nostr: Yep. Banks are effectively private credit systems with two huge advantages - they are ...
Yep.
Banks are effectively private credit systems with two huge advantages - they are using a nationally-mandated unit of account (e.g., dollar) and are guaranteed a 1:1 exchange rate with public money, no matter how crappy their balance sheet is.
With Bitcoin, the unit of account is sats (no need for a nationally-mandated unit of account), and ‘cash’ or credit (ecash) has no choice but to trade at par because of the almost perfect liquidity.
In this new system, anyone can be a ‘bank’.
Published at
2024-11-10 20:01:29Event JSON
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