More on Fedimints and why I think federations are the way to global Bitcoin adoption but it will certainly result in a major clash with tricksters trying to derail those in the BTC/LN ecosystem trying to disrupt the banking system.
Note: We are a Beta site for Fedimint - no conflict of interest
- Traditional banking has existed for hundreds of years with fractional banks coming later and finally central banks.
- In this ecosystem of banking are a myriad of services that banks offer to attract and retain customers. In effect, Banks are custodies of our money and services.
- Only in smaller countries will there be a direct CBDC, the risk for a run on a central bank is too great for that to happen here in the US.
- JP Morgan, Chase, GS, Mellon, BOA WILL NOT GIVE UP THEIR REVENUE OR THEIR CUSTOMERS WITHOUT A FIGHT!
- They only have two choices: Develop their on LN solution or purchase, or acquire current LN start-ups out there. And make no mistake, all of these start ups have EXIT in mind, and that may come in the form of an acquisition - we should be prepared for this and not say they have sold themselves out
- It's highly likely that FEDI will have it's greatest impact at the community bank level/credit union arena first here in the US. Outside the US, especially in Guatemala, there are many small regional banks. There are co-ops which would be their target to "sell" their services to.
- LN wallets are great, but their needs to be more work on providing anciallary services within a community setting. The community setting, in this case, would be a bank's community of users.
- The BIGGEST issue with mass global adoption is custody. Despite what we think as maxis, the vast majority of people aren't going to self custody and a custodial wallet alone has too much risk. So I think the federated model is very appealing.
