The Old World of Centralized Finance (1/5)

Our current financial system is very centralized. In our current system, government and banks control the flow of money. They can choose to print more of it if they choose to(causing a lot of the inflation we are seeing this year) or decide who’s eligible for a loan.

Without getting to preachy, the large institutions and governments seem to have stricter policing on the guy looking to get a car loan, than to the banks lending each other billions of dollars… and we all saw how that ended in 2008. 

That being said, we know that laws and regulations exist in our centralized system to prevent money laundering and there are safeguards in place meant to protect consumers or banks from the risk of a bank run.

There’s pros and cons to our current system. The opposition exists as decentralized finance: A dream for libertarians and a nightmare to regulators.

Written by Writers Room


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