[HissingMachine]

Nobody trusts banks, but these crypto characters make banks look like solid organizations.

[brookst]

The magic of banking is that retail depositors don’t have to trust them.

[complianceowl]

Banks require us to give them large amounts of trust. We deposit our money. They lend that money out, while the general public is under the impression that you deposit money and it stays there. The bank's very business model relies on all of their depositors not needing/withdrawing their money at the same time; should everyone happen to need/withdraw their money at the same time, the bank would fail. Fractional reserve banking at its finest.

[WinstonSmith84]

You're right, we don't have to trust them, because we know we cannot trust them. Regular banks are not keeping your money ready for you to withdraw. They are investing your money (the profits are for them, the losses are for the taxpayers), while they hope that not everyone want their money at the same time. Binance is accused to mix customer funds with their own funds. If it were a bank, that would be essentially a given. Not necessarily defending Binance, but ...

[mhluongo]

Eh, the FDIC is $250k per account, and total coverage in the fund is pretty small. I'd think we'd stop making blanket statements like this after seeing a couple large bank failures back-to-back in the US. If there are more, we won't be able to make all retail depositors while without significant additional tax revenue or currency debasement.

[BLKNSLVR]

Nope. Banks are just the devil you know, so they get more of a free pass. You're desensitised to banks, but sensitive to anything else that may end up being "just as bad" as the banks.

Banks already exist, don't inflict more similar behaviour on us! Please!