Your Questions: Is There Still a Way to Privatize Banking?

This question came from Ron.

The answer is yes, and here’s why.

The banking functions we wish to privatize are savings and finance.  As I point out in Stop Being Poor, debit card, checking, and online bill pay are part of demand deposit banking.  Privatizing that part is what is what cryptocurrencies are addressing, but that will take some time.

The financial benefits from privatizing savings and finance can be dramatic:

• Our savings will never be lost by Wall Street or anyone else
• We have contractual guarantees of growth.
• We have access to finance (loans) at any time by borrowing against our savings, using it as collateral.
• We decide when and how much our loans are paid back
• We do not lose the power of compound interest of our savings, even if we need finance

Not only is Privatized Banking possible, it is the best possible course of action for almost any household or business.  Not just my idea, but a proven approach that has been working for over 100 years.