Eric Yakes, author of “The 7th Property,” shares his practical vision for a bitcoin native banking system in an interview, where he explores the potential for Fedimints to revolutionize free banking in the digital age.
As the world becomes increasingly digitized, there is growing interest in the potential for a bitcoin native banking system. In a recent interview, Eric Yakes explores free banking and digital currency in depth on a global level.
Yates noted that there are only two reasonable scenarios for bitcoin, the worst-case scenario is that it is used as digital gold that works alongside fiat, and the best-case scenario with an apolitical global monetary system that enables freedom within society.
Bitcoin could grow into a global financial sector
If a store of value is considered the worst-case scenario, it is evident that fiat currency or a central bank digital currency (CBDC) would not be able to truly understand the potential benefits that bitcoin can offer to the world.
On the other hand, bitcoin could serve as a borderless, apolitical currency that is free from the influence of governments and central banks. Transactions can be processed quickly and cheaply, making it an attractive alternative to traditional payment systems.
Furthermore, due to its restricted quantity, bitcoin is inherently resistant to inflation, thereby offering a secure financial option during times of economic instability.
Yates also goes on to say that as long as people can opt-in to self-custody and peer-to-peer transactions through the base chain or the lightning network, bitcoin could function as a decentralized and digital form of currency for the concept of free banking.
The idea of free banking suggests that banks would operate without government intervention or regulation, and competition would drive innovation in the financial sector.
The use of bitcoin in an eCash and free banking society could provide individuals with more control over their finances and greater privacy, but a thorough analysis of the possible drawbacks and difficulties that might arise from the implementation of this system would be necessary as well.
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