[unicornmama]

It wouldn’t have. CoinBros don’t understand that IOUs (debt) have existed across human history and will likely continue to exist. And that most economic activity is done through debt.

Once a set of “trusted” actors can issue debt, you have monetary expansion.

In Crypto, we have Coinbase, Binance and Tether - the defacto crypto banks. They have the ability to expand the crypto money supply and promise IOUs multiples in excess of their true deposits.

[johnisgood]

Maybe we should focus on Bisq[1], a decentralized bitcoin exchange network. Solves the centralization that is Coinbase, Binance, and so forth.

[1] https://bisq.network/

[unicornmama]

Coinbase, Binance, Tether are a problem to decentralization. They are far more centralized than the fiat alternative. Imagine if the stock exchanges, brokerages, payment processor, private and commercial banks were all controlled by one or two companies.

The success of these centralized exchanges ought to give anyone pause with regards to how truly decentralization crypto really is.

Regardless, defi exchange won’t stop monetary expansion. People with a currency will want to gain a return on those currencies, since they don’t do anything productive sitting in a wallet. Therefore, banks would emerge with deposit accounts who would then lend out loans in excess of deposits. I don’t see a defi way of doing that which would replace institutional banking, because individuals and algorithms are not equipped or financed to analyze the lending risks, fraud, take legal actions, etc..