Oddbean new post about login | logout Not well informed sounds exactly like the market we have today 🤣. I like the idea of open banking (non central bank) credit systems. I recently rewatched Ip man about the legend who trained Bruce Lee. Before the war he was a wealthy man in his community and lent money to people in his town to start businesses and grow capital. I imagine ecash mints like that.
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’.