Earlier quoted context omitted.
I think it decentralizes account fees, lending, term deposits, funds, everything. It turns the traditional banking model on its head because anyone can "become a bank" and handle the traditional "keep your money safe" model that banking was originally created for. Those getting paid for transactions will be those investing in the network infrastructure - which is also decentralized, because again - anyone can jump in…
"Anyone can become a bank" isn't a good thing. What stops people at the moment is the requirement to be regulated. Compliance with that regulation costs money and is a barrier to entry but a necessary one. Your "only downside" is enormous! I'd never consider paying my salary or keeping my savings in an organisation that has no regulation. My money could just disappear overnight. You add that I could put 1% of the acc…
We've seen entire banks collapse and people lose their money in the past decade alone. The early days of banking was rife with fraud and scams.
I don't expect this to change in the short-term, however think about the convenience you'd see on day-to-day banking and how fast new features could be developed compared with our current banking system. Even if you only held a very small amount in a "new bank" and "currency" and kept you significant savings and assets in a traditional bank, I could see this slowly chipping away at existing banking services very quickly once a consensus on currency is reached within a community.