In this episode, Patrick McKenzie (patio11) is joined by Erik Torenberg, the founder of Turpentine, to discuss the fundamentals of money movement and banking systems. Patrick breaks down how banks facilitate transfers through correspondent accounts and clearinghouses, explaining the evolution from physical check movement to digitization. They cover the gold standard's history, and then dig into stablecoins and their implications for the future of finance. – Full transcript available here: https://complexsystemspodcast.com/money-movement-erik-torenberg – Sponsor: Check Check is the leading payroll infrastructure provider and pioneer of embedded payroll. Check makes it easy for any SaaS platform to build a payroll business, and already powers 60+ popular platforms. Head to checkhq.com/complex and tell them patio11 sent you. – Links: Bits about Money - Bank Transfers https://www.bitsaboutmoney.com/archive/bank-transfers-as-a-payment-method/Bits about Money - Stablecoins https://www.bitsaboutmoney.com/archive/stablecoin-mechanisms-and-use-cases/ – Twitter:@patio11 @eriktorenberg -Timestamps:(00:00) Intro (00:49) What is money? (02:39) How money moves (06:00) Banking and correspondent accounts (07:59) Clearing houses and payment systems (12:09) The gold standard and fractional reserve banking (18:15) Introduction to stablecoins (19:38) Sponsor: Check (21:31) Stablecoin models and issues (27:30) Crypto skepticism and innovations (30:53) Regulatory arbitrage and future of money (36:36) Wrap