As mints compete with lower fees and more services, the incentives lead to lending out more ecash than available in the reserve. Yes, this is theft and will be aparent when people run off the mint all at once.
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I'm making the point that "fractional reserve" isn't considered theft as long as the bank is only lending out reserves against debt that their debtors are current on their loans. This is why "free banking" technically isn't engaging in theft.
Let's find out what Rothbard thinks about "free banking:" https://nakamotoinstitute.org/static/docs/the-mystery-of-banking.pdf
And then the operators will burn their reputation forever, be prosecuted and the market will adjust.
Do you like free markets or not?
Trying to prevent market failures is what central planners do.