Bankless Ep. 55 podcast notes part 1
Money should be a public good and credibly neutral. The current legacy financial system is not transparent and outdated. Just like there’s a separation between church and state, there should be a separation between money and state.
Central banks are extensions out of nation-states that are controlled by people who have their own interests. Everything that affects our finances is ultimately dictated by a small group of people behind curtains.
Centillion effect and inflation disproportionately put money into already rich hands — the people and businesses who are approximate to the federal reserve. People who already have assets watch their value constantly go up aka asset inflation. Who are the primary owners of assets? The wealthy.
Central banks breed wealth inequality. Unequal access to assets and financial services means normal people cannot afford wealth. They can only afford everyday living by spending income only on consumables.
We need an open financial system. The financial sector as it is today consumes a massive amount of GDP through middlemen who take a large cut. Removing them is an opportunity to distribute more wealth.
Crypto offers solutions to these problems by communicating value through protocols, for example, such as Bitcoin and Ethereum. It’s through inherently neutral protocols, or code, that they can offer a fairer (albeit currently volatile) system for everyone.
Web3 aims to replicate the current financial system in a way that’s more credibly neutral, open, accessible, verifiable, and much more powerful. Crypto’s strongest attribute? It makes social coordination easier! It facilitates human collaboration and is a human coordination technology.
Personal sovereignty over your finances! At the end of the day, you should be given the option to be in 100% control over the storing and management of your wealth. Decentralized finance is here!
This micro-essay is 010 of #ship30for30 challenge.