Breaking The Bank#Day08

The Modern Financial System

Fisrt, the author tells us a story about the prototype monetary circuit that marks the beginning of banking system we use today.

However, the modern monetary circuit is a double-edged sword: although modern circle boosts economy, it causes undesirable wealth concentration and leveraged money creation with potential risks. That is why we got stucked in the 2008 financial crisis.

Today, a twisted web of factors, such as a booming population, global trade and powerful computers, makes modern finicial system far too complicated to manage, regulate and understand. The private banks used to be simple intermediaries have their own motivation to pursuit profits, they inject opacity to the system.

Digital currencies are designed to solve these issues, which are shaking up the functionality and ideology of global finance. Next, we will talk about RISE OF DIGITAL CURRENCIES .

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