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Banks to be replaced?


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When discussing how new crypto legislation will make it trough the system:

“Politicians in the U.S. will use these to push 'agenda' points which suit their circumstances. Let's not forget, in the U.S. banking and financial institutions are large contributors to members of congress in both houses. It is unlikely that those who's political positions are financed by the banks, will be backing a technology which ultimately, will replace them.” -  Cal Evans, a U.S. litigation specialist and founder of Gresham International

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17 minutes ago, itcdominic said:

HAHA.....I think it was more of a ZINGER  statement.  Banks will adapt and align and be around for a long time.

Agreed, especially if they use Ripplenet. They have probably already made the assessment and just waiting for regulatory clarity before moving forward with this.

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"I'll approve funds for your highway extension in Oregon if you approve funds for my farming subsidies in Kansas.  Not enough money you say? Just fire up the money press and that way our uneducated constituents will re-elect us for the 10th time, let the next generation figure it out."

Even more disturbing to law makers than losing rich banking donors is that they will no longer be able to furnish debt-financed promises to the masses in order to garnish their votes.  Just imagine congress having to come up with an agreement on how to divvy up a finite financial standard where the flow of funds could be tracked bringing back an era of compromise and accountability.

Edited by ManBearPig
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1 hour ago, itcdominic said:

When discussing how new crypto legislation will make it trough the system:

“Politicians in the U.S. will use these to push 'agenda' points which suit their circumstances. Let's not forget, in the U.S. banking and financial institutions are large contributors to members of congress in both houses. It is unlikely that those who's political positions are financed by the banks, will be backing a technology which ultimately, will replace them.” -  Cal Evans, a U.S. litigation specialist and founder of Gresham International

They say there's a revolving door between congress and Wall Street ;) Ripple requested congress to not paint the blockchain industry with a broad brush and I think we shouldn't paint the banking industry with a broad brush either. There are different types of banks (retail banks, commercial banks, investment banks, central banks, credit unions, online banks, mutual banks etc.) and it is my belief that in at least some of those types 'intratype competition' will force banks to use blockchain tech.
 

Edited by Danny
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I agree with just about everything in this thread. It's been my view that it is the bank lobby that has managed to delay any real meaningful progress on US regulation. It's a stalling tactic, while they figure out how to co-opt crypto, which they now realize is their best bet. They either take it over, or become redundant.

Crypto banking is happening now. I could borrow a modest sum already from two cryptos banks....which I do business with because (unlike JPM and Wells Fargo, both of which I have accounts with) they actually pay me interest on my deposits.

Banks cannot live in a peaceful co-existence with Nexo and Celsius Network......if the bankster plan is to go completely cashless and lower interest rates below zero (which is just theft legalized)......and I do believe that's exactly what they want......if so, they can't allow a viable alternative to put them out of business.

I'm not sure how the end game plays out. I'm really not. It is a risk factor for us  hodlrs, I can tell you that.

Here's my message for the politicians.

People just like me pay the bulk of the taxes in the US. What will keep me from taking my crypto wins and voting with my feet, should I have  the kind of excellent gains I'm expecting? There will be NO incentive for me to stay anymore.

Being in the middle neither poor (Yay, no taxes on the poor) or extremely rich (Yay, no taxes for billionaires), I've been screwed by the system for most of my working life. Because I work hard, I manage to stay ahead and do okay.....but it's getting harder....so I'd be quite happy to tell Uncle Sam to kiss my ass, if I win this crypto game. I could live fine abroad. 

Mnuchin needs to grok that bit of intel. So does the Con-gress.

Edited by dr_ed
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2 hours ago, dr_ed said:

I agree with just about everything in this thread. It's been my view that it is the bank lobby that has managed to delay any real meaningful progress on US regulation. It's a stalling tactic, while they figure out how to co-opt crypto, which they now realize is their best bet. They either take it over, or become redundant.

Crypto banking is happening now. I could borrow a modest sum already from two cryptos banks....which I do business with because (unlike JPM and Wells Fargo, both of which I have accounts with) they actually pay me interest on my deposits.

Banks cannot live in a peaceful co-existence with Nexo and Celsius Network......if the bankster plan is to go completely cashless and lower interest rates below zero (which is just theft legalized)......and I do believe that's exactly what they want......if so, they can't allow a viable alternative to put them out of business.

I'm not sure how the end game plays out. I'm really not. It is a risk factor for us  hodlrs, I can tell you that.

Here's my message for the politicians.

People just like me pay the bulk of the taxes in the US. What will keep me from taking my crypto wins and voting with my feet, should I have  the kind of excellent gains I'm expecting? There will be NO incentive for me to stay anymore.

Being in the middle neither poor (Yay, no taxes on the poor) or extremely rich (Yay, no taxes for billionaires), I've been screwed by the system for most of my working life. Because I work hard, I manage to stay ahead and do okay.....but it's getting harder....so I'd be quite happy to tell Uncle Sam to kiss my ass, if I win this crypto game. I could live fine abroad. 

Mnuchin needs to grok that bit of intel. So does the Con-gress.

I second that. I believe, that for the average joe the austrian school of economics way regarding money would be the most beneficial. They believe (in very simple terms), that a free-market origin of money would ultimately lead to a better monetary system. Everyone could issue money and choose which to use. This is - in part - happening with crypto already and is very dangerous to certain business models and power structures.

If I put on my tinfoil hat, I see the possibility for random conflicts and economic crisis in the next years, that somehow "require" the consolidation of all money (including crypto) in some way or lead up to that kind of scenario.

I am a little anxious about that. But since there is really nothing I can do, apart from diversifiyng in a smart way, I will just let it unfold and hope I recognize the signs early enough to act.

Edited by Muellhart
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I don't even call myself a big fan of Austrian Economics....in my view the real problem is not with Keynes or even with the Chicago School and Friedman (although I hope he's roasting in Hell).

The real problem is a system that allows profligate public spending as a byproduct of monopolizing the banking system. Unlimited credit for the federal government.

Crypto would be perfect, but like all tech it is somewhat fragile as far as infrastructure......and we should start looking at our energy use for being on the web. The same people who buy an electric car to save the planet are happy to use as much electricity and bandwidth as they can dream of....I include myself in this group.

I just lost my web connection a minute ago. What if the web got turned off in a "national emergency" of some kind and didn't come back on?....

And...crypto allows for complete transparency (unless you design it not to) so if all our payments were on on-chain, we'd be an open book for The Man. I think private crypto will probably be banned here. I'd be surprised if it weren't. But public crypto is the government's wet dream...not that they don't know most everything there is to know already....

 

Energy, as of now, is an issue. 

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What is the USD goes down like venezuela's currency and all the USD millionaire/billionaire bagholders are looking stupid.

This is why i focus on digital assets and homes, people always going to need a palce to live and will pay with the on demand currency of that time. 

were already losing 3% a year its not some 'cant happen doomsday'

This **** happens all over the world. 

Edited by Finesse
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11 hours ago, itcdominic said:

When discussing how new crypto legislation will make it trough the system:

“Politicians in the U.S. will use these to push 'agenda' points which suit their circumstances. Let's not forget, in the U.S. banking and financial institutions are large contributors to members of congress in both houses. It is unlikely that those who's political positions are financed by the banks, will be backing a technology which ultimately, will replace them.” -  Cal Evans, a U.S. litigation specialist and founder of Gresham InternationalThroughout history 

11 hours ago, itcdominic said:

When discussing how new crypto legislation will make it trough the system:

“Politicians in the U.S. will use these to push 'agenda' points which suit their circumstances. Let's not forget, in the U.S. banking and financial institutions are large contributors to members of congress in both houses. It is unlikely that those who's political positions are financed by the banks, will be backing a technology which ultimately, will replace them.” -  Cal Evans, a U.S. litigation specialist and founder of Gresham International

Throughout history banks have been repositories of value. That will not change. If digital assets prove to have value banks will hold them. It does not matter if individuals can also hold them. There is lots of value for banks to add......Meaning banks will be around but not quite as powerful as before. Any maxis thinking otherwise do not know history/geoplolitics

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Banks need wallets. Wallets to replace “accounts”.

We’re playing the ultimate “king of the hill” game. Banks are on top and see an opponent approaching, they are bracing themselves to kick crypto straight in the face and defend their position.

However, if say Ripple or Coil or whoever would do it could provide a way for Wells Fargo to store digital assets I think they’d be more receptive to the idea. Settling payment is one thing, but there is a whole other side to this internet of value revolution.

If banks had wallets, it would be much easier to transfer profits as well. The real upside for them though is control. Since we’re going down this regulated path anyway, might as well keep #1 happy. All the “down with the banks” talk is crazy. They’re not going anywhere.

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I don't think banks will be replaced but they will definitely need to evolve. Since 2008, the UK for example has been pushing for some reforms where as consumer banking and savings is being ring fenced from the investment arm. Banks love to take risk with other people's money knowing full well if they go down then the tax payers will foot the bill even though they gambled with tax payer's money in the first place. This happened to Lloyds TSB (they then got split up), RBS and Bradford & Bingley. 

Funny enough, each country had a sacrificial lamb in the alter of progress. The US had Lehman Bros. and the UK had Northern Rock. This time around, Germany will have its Deutsche Bank which will probably bring even stricter reforms to try and separate consumer and savings accounts with the corporate and investment side. 

Bank of England's push towards opening its doors to financial institutions other than banks is one step closer towards achieving this goal. They are creating an even playing field by breaking the monopolisation of Central Bank money by other banks. This is why this new FedNow scheme met a bit of resistance from incumbents in the US, they did not want this system to come directly from the Fed, they wanted to make their own. 

I'm not sure if they anticipated the Fed to follow the same route as the Bank of England, afterall they have been in consultation with each other for the renewed RTGS system in the UK. 

It's all conjecture for me but I cannot deny that underneath the table, there are some serious reforms happening and a new monetary system is taking shape right before our eyes. DLT, Blockchain and Digital assets have opened up a can of worms. 

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On 8/2/2019 at 7:07 PM, dr_ed said:

I agree with just about everything in this thread. It's been my view that it is the bank lobby that has managed to delay any real meaningful progress on US regulation. It's a stalling tactic, while they figure out how to co-opt crypto, which they now realize is their best bet. They either take it over, or become redundant.

Crypto banking is happening now. I could borrow a modest sum already from two cryptos banks....which I do business with because (unlike JPM and Wells Fargo, both of which I have accounts with) they actually pay me interest on my deposits.

Banks cannot live in a peaceful co-existence with Nexo and Celsius Network......if the bankster plan is to go completely cashless and lower interest rates below zero (which is just theft legalized)......and I do believe that's exactly what they want......if so, they can't allow a viable alternative to put them out of business.

I'm not sure how the end game plays out. I'm really not. It is a risk factor for us  hodlrs, I can tell you that.

Here's my message for the politicians.

People just like me pay the bulk of the taxes in the US. What will keep me from taking my crypto wins and voting with my feet, should I have  the kind of excellent gains I'm expecting? There will be NO incentive for me to stay anymore.

Being in the middle neither poor (Yay, no taxes on the poor) or extremely rich (Yay, no taxes for billionaires), I've been screwed by the system for most of my working life. Because I work hard, I manage to stay ahead and do okay.....but it's getting harder....so I'd be quite happy to tell Uncle Sam to kiss my ass, if I win this crypto game. I could live fine abroad. 

Mnuchin needs to grok that bit of intel. So does the Con-gress.

We think the same here in Europe !!

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