The banking system we have today is financial infrastructure similar to the old phone networks in preInternet days – it’s way too centralized and too many tolls are paid as the flow goes through the money centers.

Interestingly the $100,000 limit on FDIC insurance is encouraging people to move their assets out of the money centers and directly into regional and local banks.

The pain of transition to a less centralized and less intermediated financial system will be great but hopefully less than the cost – not only in funds now but efficiency later – of keeping the old infrastructure in place.

Originally posted as a comment by Tom Evslin on A VC using Disqus.