Fractional reserve on it's face isn't terrible when you know the bank you're using is doing it and accept the terms and risk. The issue is when the money itself is completely debt.
With free banking, you can choose your own level of risk. With Bitcoin as the underlying and proof of reserves being possible, you can better assess the risk of any given bitcoin banks ecash. Lightning itself is full reserve by design. Ecash requires trust, but the nature of there being multiple interoperable mints provides some level of check.
HODLBurger
npub12m…v2jq0
2024-07-03 18:00:49
in reply to nevent1q…7wl7
Author Public Key
npub12m8r7w3v4n9ngpxzpguwwpxrcngjmclp2774jg90263m622svhzshv2jq0Published at
2024-07-03 18:00:49Event JSON
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"content": "Fractional reserve on it's face isn't terrible when you know the bank you're using is doing it and accept the terms and risk. The issue is when the money itself is completely debt.\n\nWith free banking, you can choose your own level of risk. With Bitcoin as the underlying and proof of reserves being possible, you can better assess the risk of any given bitcoin banks ecash. Lightning itself is full reserve by design. Ecash requires trust, but the nature of there being multiple interoperable mints provides some level of check.",
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