I somewhat agree: "trust somebody" can be quite efficient. But it's prone to bad incentives (undeclared fractional reserve) which can drive out good actors (who are not as profitable) *then* collapse. I know @calle has thought about this a fair bit, and has a rotating ecash solution which may address it well enough?
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Undeclared fractional reserve would definitely fall under the crook category- I’m certain that will happen somewhere in this market of “banks”- but at what scale? Am I naive in thinking there’s some kind of social layer within this community that would enforce transparency to allow a mint to even get large/popular enough to be systemic? Over-engineering “perfect” solutions and leaving nothing to the social layer comes with its own complexities, unforeseen consequences and never mind UX/scaling issues…
I’m also curious to learn more about this rotating e-cash though thanks for bringing that to my attention 🙏🏼
