It's a non-starter. Banks have capital requirements that none of us could meet. If you go under them for a second, you'll be shut down. You also need to do a lot of paperwork to operate internationally.
Also, as I edited in, ACH suffers from the same problem as MasterCard. A feminist woman pulling the strings. You're just relying on her being constrained by red tape from using the power available to her.
What you're suggesting is far larger than a credit union. You're suggesting the banking equivalent of what Elon says Twitter will be. You're going to need to operate in more than just the US if you want that, and European rules on banking are very strict. To create an international bank is a huge endeavor. It's why you don't see new banks pop up that often.
If you limit yourself to just operating in the US, you might be able to start with a far lower amount, but there's still pitfalls
If you don't have branches, your weak point is your website/app being blocked in some way, if you do, that's a cost you have to bear.
If we had someone serious about it looking into it, it might be possible. You'd also have to have a buffer to prevent bad actors creating a bank run.
It's a non-starter. Banks have capital requirements that none of us could meet. If you go under them for a second, you'll be shut down. You also need to do a lot of paperwork to operate internationally.
Also, as I edited in, ACH suffers from the same problem as MasterCard. A feminist woman pulling the strings. You're just relying on her being constrained by red tape from using the power available to her.
You are thinking the numbers are a couple orders of magnitude larger than the numbers really are.
How do you think local credit unions keep poping up and then going under?
Yes, and?
NACHA IS ONLY AN INDUSTRY GROUP, THE RULE MAKING BODY IS THE DEPARTMENT OF THE TREASURY.
What you're suggesting is far larger than a credit union. You're suggesting the banking equivalent of what Elon says Twitter will be. You're going to need to operate in more than just the US if you want that, and European rules on banking are very strict. To create an international bank is a huge endeavor. It's why you don't see new banks pop up that often.
If you limit yourself to just operating in the US, you might be able to start with a far lower amount, but there's still pitfalls
If you don't have branches, your weak point is your website/app being blocked in some way, if you do, that's a cost you have to bear.
If we had someone serious about it looking into it, it might be possible. You'd also have to have a buffer to prevent bad actors creating a bank run.
I am aware of all of that, yes.
Consider the Keiretsu.
The keiretsu are vertically and horizontally integrated business groups in Japan, each built around their own... private... bank.
As in, it's theirs. They control it.
Suppose the free speech wing of the internet decided to get its ass together and form a keiretsu. With a real bank, that clears real transactions.
I don't think it's impossible. It's just a lot of work from people who are as lazy as Ian Fucking "Free the Code" Crossland.
Graphene is the future of money my man.
Bank runs are only possible if you write loans.
It's entirely possible to run a bank that doesn't operate on loan income. It'd just have to charge fees...
Like PayPal does.
The second you could have a positive balance at PayPal, it became a bank. Albeit a crummy one with no depositor's insurance.
If you don't offer loans, what stops "real" banks refusing your customers loans purely because they are with you?
The problem with fighting the system is that every little thing has to be heavily protected from shitty tactics.