Is web3 a means to rebuild the global financial system?
Web3 is not a means to rebuild the global financial system.
Crypto assets do not have the capacity to function as money which serves as the foundation for a financial system. Without money which can mediate transactions, serve as a medium exchange, be used to denominate contracts and issue debt products in, all of modern finance could not exist.
Crypto has no theoretical basis as a foundation for a financial system because it is not fit for purpose and is not a currency.
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- Petz, Marcus. 2020. ‘When Is Money Not a Currency? Developments from Finland of Proto-Community Currencies’. International Journal of Community Currency Research 24 (2): 30–53.
- Gorton, Gary B, and Jeffery Zhang. 2021. ‘Taming Wildcat Stablecoins’. Available at SSRN 3888752.