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Let's assume cryptocurrencies we're stable for a second. Wouldn't banks still have a place? How would loans be provided in the realm of cryptocurrencies? Would it look more like peer to peer loans? Or would a similar bank like entity be needed?

I'm not well-versed on this topic so forgive me if the answer is obvious.




"Stable" price wise is not possible, with any currency not based on a hard, tangible commodity, fundamentally.

That aside, what something like bitcoin does is decrease the barrier to entry as a provider of financial services to only requiring the capital needed to do so. There is still room for banks, lenders, and the broad range of financial services and instruments that exist now (and plenty that don't), but access to this market is no longer protected by bureaucracy for Tue benefit of entrenched interests. And sure, some of the services we think we need from them are just rent seeking and those services might go away, the glaringly obvious being that contracting someone to securely store your assets is now optional.


Algorithmic stable coin DAI is quite stable. And you can take loans against it through various defi platforms.

The pace of crypto defi innovation has been astounding. I'm literally taking bank cash and putting it into stable coins and getting 8%+ interest without breaking a sweat.




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