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FreeManMcLovin 2 months ago
What to make of fractional reserve banking? My original take was that it stimulates and accelerates progress. Now I'm not so sure. Is it all bad? Perhaps some reasonable threshold is optimal? 80%, 50%? Or is 100% reserve the only sound option? I suppose self custody of Bitcoin is 100% reserve and taking a collateralized loan on your Bitcoin is fractional reserve banking.