There have still been no consequences for large banks issuing known bad mortgages in the early 2000s and then reselling those mortgages in bundles with artificially inflated default rate claims.
I'm not sure how a cryptocurrency based financial system, designed so that there can be never be criminal justice consequences for any financial action, is supposed to be an answer to particular abuses without consequences in the ordinary financial system. The state doesn't do a great job regulating bad actors in the financial system - how can "let them do whatever they want" be the answer to that?
If we had an ethereum based loan system, in the ideal, home owners could not get relief for the most abusive contract and those who made those contracts could remain anonymous and inherently immune to consequences.
"designed so that there can be never be criminal justice consequences for any financial action"
I don't see why that's true at all, cryptocurrencies are public ledgers with mostly KYC'd on/off ramps. You can pursue criminals, but it's harder to create collusion-based regulatory monopolies. Users of financial products have more choices through self custody and the diversity of decentralized financial products. The merger of decentralized finance with a better regulatory/taxation framework (+ a few safety features) will significantly dis-intermediate mainstream finance and deal a major blow to Wall Street. It's going to be great.
>If we had an ethereum based loan system, in the ideal, home owners could not get relief for the most abusive contract and those who made those contracts could remain anonymous and inherently immune to consequences.
Smaller scale crimes may be harder to track down but large scale institutional crimes will be easier to prosecute since e.g. Aave will never have the regulatory clout of Bank of America. Decentralized finance institutions adding systemic hazard to our financial system will be more vulnerable to governmental actions and individuals will have more choices to not participate in an opaquely corrupt system of finance that manages to ensnare everyone through savings and retirement funds.
I don't want the money I save to be funneled to the investment banking arm of a mega-corp which then destabilizes the entire country with impunity.
I don't see why that's true at all, cryptocurrencies are public ledgers with mostly KYC'd on/off ramps.
Explain how bitcoin has become the go-to tool for ransomware gangs.
Moreover, the intent of cryptocurrency creators and substantial number of cryptocurrency users is to be immune to regulation. You can read the number of posters here who view bitcoin as answer to the power of the Fed. Maybe crypto can be so controlled by regulators that it won't anything, in which case there's no idealistic argument for its existence. Or maybe crypto could make it's users immune to consequences, in which case there are good arguments to follow China's lead and make the system point-blank illegal.
They use a shrinking pool of non-KYC off-ramps, recently they have been having worse luck at staying anonymous and their centralized exchanges are getting shut down. The era of crypto for ransomware is ending, the anonymity of the blockchain is a fading peculiarity of its early days. In practice, your transactions are even more traceable once enough of the centralized exchanges are brought into a regulatory framework and the bad actors are shut down (all happening now).
I'm not sure how a cryptocurrency based financial system, designed so that there can be never be criminal justice consequences for any financial action, is supposed to be an answer to particular abuses without consequences in the ordinary financial system. The state doesn't do a great job regulating bad actors in the financial system - how can "let them do whatever they want" be the answer to that?
If we had an ethereum based loan system, in the ideal, home owners could not get relief for the most abusive contract and those who made those contracts could remain anonymous and inherently immune to consequences.