TheGuySwann on Nostr: You make a good point, but I still think we have too often conflated the problem of ...

You make a good point, but I still think we have too often conflated the problem of *systemic* fractional reserve with the simple design of trusted custodians. It is higher risk, but it isn’t a systemic risk and there is nothing wrong with individual trusted relationships. The problem is having a third party inserted systemically that cannot be escaped from, thus the entire monetary integrity is irrevocably connected to it.

But simply allowing people to build trusted relationships and to simply have the option of a custodian for a feature, a better UX, or some service is not a fundamental or philosophical problem. Sound money is exactly what lets us build these trusted relationships again and hold people to real standards.

TL;DR - a return to a free banking system is desirable and a million times better than our current system and solves the greatest problem we have. Custodians won’t be going away any time soon, but the option of noncustodial technology will keep custodians honest. It would be amazing if we had this level of privacy and ease of use non-custodially, but we don’t have that yet. Until that is built, this is a huge leap forward, imo.