From the "Silvergate" section of this newsletter: [...] [...]
From the "Silvergate" section of this newsletter:
Silvergate used to be a regular boring bank, taking deposits and using them to make commercial and real-estate loans. But in 2013 it decided to change its focus and instead become a bank for cryptocurrency customers.
[...]
Schematically you can think of Silvergate as providing a simple arbitrage:
Lots of banks want nothing to do with cryptocurrency customers.
But they’ll happily take deposits from other banks.
Silvergate can pay cryptocurrency customers zero interest on deposits (no competition!), and then put the money in ordinary banks and earn interest.
[...]
Somehow crypto exchanges have gotten together and solved the problem of efficient instantaneous automatic money transfers! By all banking at the same bank! Oops! Next year on the blockchain, I don’t know.
The idea that this has to happen at a single bank is the issue. Having a single clearing house for financial transactions gives incredible opportunity. Nearly instantaneous money transfers to...
Somehow crypto exchanges have gotten together and solved the problem of efficient instantaneous automatic money transfers!
The idea that this has to happen at a single bank is the issue.
Having a single clearing house for financial transactions gives incredible opportunity.
Nearly instantaneous money transfers to anywhere on that same platform!
Near Impossible to avoid taxes or launder money since all documentation is on the same platform.
Cheaper. I can realistically shop around for financial services anywhere on the same platform.
Everything is available. No more "you can't use a foreign credit card" or solutions with high fees.
All banks in Norway are on the same platform. This has been the case for a long time. It works really well.
I was at the right place at the right/wrong time recently and took a picture that I sold to a newspaper more than 1000 kilometers away. The money was in my bank account before I'd finished the 20 minute drive home, taxes automatically deducted based on the tax bracket I'm expected to end in this year.
Cryptocurrency is a bad idea. The problems cryptocurrencies want to solve though, those "fintech issues" could revolutionize international finance. That takes strong international cooperation and the current political climate is much more interested in the national interest.
Yes, using a single bank is a workaround. The US system for money transfer between banks is antiquated. I think it's based on batch jobs run once a day. But I read somewhere that there's an...
Yes, using a single bank is a workaround. The US system for money transfer between banks is antiquated. I think it's based on batch jobs run once a day. But I read somewhere that there's an initiative to fix this and it will be online in a few years. Meanwhile it's an opportunity for various alternatives.
If US banking had modernized sooner, perhaps cryptocurrency wouldn't have become as popular?
From the "Silvergate" section of this newsletter:
[...]
[...]
The idea that this has to happen at a single bank is the issue.
Having a single clearing house for financial transactions gives incredible opportunity.
All banks in Norway are on the same platform. This has been the case for a long time. It works really well.
I was at the right place at the right/wrong time recently and took a picture that I sold to a newspaper more than 1000 kilometers away. The money was in my bank account before I'd finished the 20 minute drive home, taxes automatically deducted based on the tax bracket I'm expected to end in this year.
Cryptocurrency is a bad idea. The problems cryptocurrencies want to solve though, those "fintech issues" could revolutionize international finance. That takes strong international cooperation and the current political climate is much more interested in the national interest.
Yes, using a single bank is a workaround. The US system for money transfer between banks is antiquated. I think it's based on batch jobs run once a day. But I read somewhere that there's an initiative to fix this and it will be online in a few years. Meanwhile it's an opportunity for various alternatives.
If US banking had modernized sooner, perhaps cryptocurrency wouldn't have become as popular?
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