Re:Vauld suspends all withdrawals, trading and deposits on t...
by JumpCrisscross on Monday July 04, 2022 @05:51AM
(#31975306)
> wonder if that kind of setup will propagate to standard financial products
It won’t. It’s been outlawed since the 30s. China had its wealth management product era, and is now cracking down. Nobody financially literate should be falling for a yield farming scheme.
Re:Vauld suspends all withdrawals, trading and deposits on t...
by pjc50 on Monday July 04, 2022 @08:01AM
(#31976096)
There was a little bit of this in the pre-2008 era. Not with retail deposit accounts, but various UK local authorities got caught in the Icelandic bank collapse: https://www.localgov.co.uk/Councils-recoup-1bn-lost-to-Icela...
https://www.ipe.com/local-authorities-hold-over-1bn-in-icela...
(why would a UK council keep its money in an Icelandic bank? Higher interest rates. Where did the higher interest rates come from? Higher risk.)
I am thinking about how over the years we stopped owning digital purchases like music and books, and instead moved to a model where the service gives unlimited access to the good in exchange for a one time payment. At first it was a few fringe services, and now this is basically the norm when it comes to digital purchases.
How far would we be from a future where a brick and mortar "banks" offer their standard services, but also a "fancy account" that feels more attractive but doesn't actually work like a bank account anymore.