The post Dan Awrey: Legacy banking faces disruption from digital payment demand appeared on BitcoinEthereumNews.com.

Dan Awrey: Legacy banking faces disruption from digital payment demand | Macro Musings Historical banking practices have created a path dependency that affects modern payment systems. Good money is defined by law and institutions, while good payments are defined by technology and governance frameworks. Central bankers should not act as central planners in response to technological … Key Takeaways Historical banking practices have created a path dependency that affects modern payment systems. Good money is defined by law and institutions, while good payments are defined by technology and governance frameworks. Central bankers should not act as central planners in response to technological advances and consumer demand. The legacy banking system is being challenged by consumer demand for new payment technologies. Money’s salient features differ in the short term and long term, focusing on payment qualities and stable nominal value, respectively. Equity-based money proposals may not work for individuals living paycheck to paycheck due to financial volatility. Current payment system innovations often fail to maintain stable nominal value due to exposure to bankruptcy processes. The threat of bankruptcy in digital currencies is influenced by the volatility of assets held by issuers. The riskiness of assets and exposure to bankruptcy processes challenge the notion that money should have a fixed nominal value. The concept of a ‘skinny master account’ is limited by the terms of section thirteen one of the Federal Reserve Act. Understanding the historical context of banking and payments is crucial for adapting to technological advancements. Consumer preferences are evolving towards digital payments, impacting traditional banking models. Asset management is key for maintaining stability in the digital currency market. Guest intro Dan Awrey is the Beth and Marc Goldberg Professor of Law at Cornell Law School. He is the author of the book Beyond Banks: Technology, Regulation, and the Future…

---

Filed under: News - @ February 15, 2026 12:43 am