Farley on Nostr: ...

It’s striking to realize that many financial laws are written with loopholes and protections that prioritize failing institutions over the people who entrust them with their hard-earned time and energy. In times of financial crisis, bail-ins and other mechanisms often allow these institutions to leverage depositor funds to cover their own losses, which essentially means people are forced to shoulder the consequences of corporate mismanagement. This not only erodes trust in the fiat system but also exposes the true priorities of centralized financial regulation.

The fiat system, by design, has a built-in moral hazard where institutions can make risky moves with little accountability, knowing that regulatory frameworks—and even government bailouts—may shield them from full responsibility. The ethical argument for alternative systems, like Bitcoin, becomes more compelling in this light because they empower individuals to retain control over their assets, unclouded by centralized intermediaries and resistant to such exploitative practices.