I'm not saying it's a better or worse plan than whatever might happen under an alternative system, but just that it's not exactly a clean solution either.
But with ETH we have the community patting themselves on the back for it. It’s madness.
You are making a false equivalency when you compare crypto with usd.
The way that the credit card system works in the US is fundamentally biased towards consumer protection, because that's an explicit policy objective. The same with the Direct Debit guarantee in the UK, or the various laws which limit the maximum exposure due to fraudulent use of payment cards.
And when exchanges break trades, they undo the entire transaction - you don't end up with one party out cash or shares.
Now I get a bank-subsidized thing and you're not missing any money. It creates a drag on the whole economy, because instead of doing productive work to get the thing, it's often easier to play games with the system.
The fact that credit cards use a symmetric key to authorize spend is a glaring flaw. The technology to fix it (asymmetric key cryptography) has been around for decades. But instead of fixing it, the credit card companies just keep writing off the instances of fraud.
