COINBASE for Crypto has come

[vimothy]

no faffing about changing money into diff formats

 

[Clinamenic]

Like I needed a bank account to use Nexo, because Nexo has to comply with anti-money-laundering regulations.

 

[vimothy]

But here the same barrier exists that I pointed out for centralized crypto exchanges, namely that you need a bank account. That said, as far as I know there could be options to get involved in retail investing with just a store-bought debit card or something.

true

 

[Clinamenic]

So crypto really only lowers the barrier to entry insofar as there are ways to get involved without even having a bank account, which can be done legally. But most activity in crypto is based on centralized platforms that require bank accounts.

 

[Clinamenic]

Anyone can make a metamask account and accept ETH or Ethereum-based tokens, without having to provide any legal information. And thats just on the Ethereum blockchain. It would just be illegal to sell these tokens or trigger other taxable events without reporting them.

 

[Murphy]

 

[Clinamenic]

DianaCoin. "Putting the royal in algorithmic royalities"

 

[Murphy]

Rather!

 

[vimothy]

So crypto really only lowers the barrier to entry insofar as there are ways to get involved without even having a bank account, which can be done legally. But most activity in crypto is based on centralized platforms that require bank accounts.

can you cash out from crypto without a bank account?

 

[vimothy]

seems to me like getting a bank account is necessary in either case, after that trad investing is much easier. hyper complexity of the market place is almost one of the defining characteristics of crypto

 

[vimothy]

"robot talk" etc

 

[vimothy]

I'm getting BTC, ETH, LINK, NEXO, BNB, and FTM, and the actual funds are coming from the interest paid by borrowers, after Nexo takes their cut.

sorry, just to come back to this, you're saying that you can borrow in all of these assets, not just stable coins?

 

[Clinamenic]

can you cash out from crypto without a bank account?

Not to my knowledge. You can cash out to a PayPal account, but I think that requires a bank account too.

 

[Clinamenic]

sorry, just to come back to this, you're saying that you can borrow in all of these assets, not just stable coins?

Yeah you can borrow against all of these, but the actual loan will be issued in stablecoins or fiat, the latter probably depending on jurisdiction.

 

[Clinamenic]

seems to me like getting a bank account is necessary in either case, after that trad investing is much easier. hyper complexity of the market place is almost one of the defining characteristics of crypto

Yeah until everyday places like grocery stores accept crypto, a bank account would seem necessary to actually use the value you have held in crypto.

 

[vimothy]

Yeah you can borrow against all of these, but the actual loan will be issued in stablecoins or fiat, the latter probably depending on jurisdiction.

fiat??? who's offering fiat loans against bitcoin?

 

[Clinamenic]

fiat??? who's offering fiat loans against bitcoin?

Nexo does, via bank transfer, but I haven't done that yet. It would work the same way, in that you'd have an outstanding loan that would accrue interest, and it would need to be paid or else eventually the collateral will be liquidated.

 

[vimothy]

but where do they get the dollars from???

 

[vimothy]

what does nexo's balance sheet look like?

 

[Clinamenic]

but where do they get the dollars from???

I'd assume they operate like other crypto exchanges, and just have a big liquidity pool of dollars like they do with other assets. It's basically overhead for running an exchange and charging transaction fees. They are also registered so as to allow me to transfer dollars to my Nexo account from my bank account.