Bankless Defending Crypto to the Middle-Class American | Austin Campbell
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Sep 30, 2024 Austin Campbell, a Columbia Business School professor and former Chief Risk Officer at Paxos, discusses the transformative power of crypto, particularly stablecoins, for middle-class Americans. He explores how cryptocurrency can serve as a safeguard against the flaws of traditional banking, especially in light of the 2008 crisis. The conversation tackles misconceptions about banking security and highlights the advantages of stablecoins, including lower transaction costs and the ability to support financial independence across diverse communities.
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Banking System Risk
- Bank customers assume their money is safe and readily available.
- Systemically, banks must take risks with deposits, creating a gap in understanding.
Grocery Store Risk
- Austin Campbell's friend, a grocery store owner, often exceeded the $250,000 FDIC limit.
- This highlights the risk for small businesses, who need readily available funds.
Risk Management Question
- Millions of bank users deposit savings, which banks use for investments.
- This structure raises concerns about who manages the risk of these investments.