With Lnbits you can see the fractional reserve ratio, meaning the bank/node can issu more sats than available in it's lightning channels which may seem like a drawback.
But if a private bank issues it own currency/token as a taproot asset on lightning who's price is pegged to the reserves in it's channels, then it can lend out it's customers btc at an interest rate. When the loans pay off the token pumps and if the bank does bad loans, then the token dumps.
It's back to traditional banking as before the invention of central banks.
Kretchino
npub1fp…rkl6t
2024-08-16 09:35:54
in reply to nevent1q…6rey
Author Public Key
npub1fpansrhscr23yxqlkvwx365gnfewgj7jljz45qh595p3rj6w7easarkl6tPublished at
2024-08-16 09:35:54Event JSON
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"pubkey": "487b380ef0c0d512181fb31c68ea889a72e44bd2fc855a02f42d0311cb4ef67b",
"created_at": 1723793754,
"kind": 1,
"tags": [
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"content": "With Lnbits you can see the fractional reserve ratio, meaning the bank/node can issu more sats than available in it's lightning channels which may seem like a drawback.\n\nBut if a private bank issues it own currency/token as a taproot asset on lightning who's price is pegged to the reserves in it's channels, then it can lend out it's customers btc at an interest rate. When the loans pay off the token pumps and if the bank does bad loans, then the token dumps.\n\nIt's back to traditional banking as before the invention of central banks.",
"sig": "4e4ac9714e098be22a0040d9431b24e30eb907a83b2d5d3f1d3b8957cad0598fe454db6e97f99c4d88d064b6940770add6665f721069bfe6474fd423eb25de7c"
}