Comment by lotsofpulp
1 year ago
Which is the root problem, and the solution is a constitutional amendment guaranteeing an inalienable right to an electronic money account one can send and receive money from.
“Banks” don’t really have a point in a cashless society (the government can operate a database just as well), but it seems the government wants to the ability to persecute selected people or populations with plausible deniability. So they use the ability to get banned by big business as a proxy.
Who would provide credit and do maturity transformation? Maybe you end up with duration matched funds everywhere but I think that's unlikely for regional banks.
Why is credit and maturity transformation needed for electronic payments?
If people want to borrow money to pay for something (credit cards and the like), that can be its own thing that the government is not involved in.