On Sunday, 28 October 2018 at 13:06:53 UTC, Laeeth Isharc wrote:

Banks are special because of the payments system and because of lending. In October 2008 Gordon Brown was within two hours of shutting down the banking system and declaring a state of emergency. If that had happened nobody would have been able to make payments and new lending would have come to a halt.

In 2038 you won't need banks to make payments because cryptocurrencies will be a viable alternative. And lending is already being provided by asset managers. So the justification for the combination of leverage and the mismatch in liquidity and risk of banks deposit liabilities and their assets will disappear.

Only one word: Huerta de Soto.

- Paolo

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