Well their can not be uncapped fractional lending as it is right now. The bank could offer a credit card equivalent, but it would need an equal amount of deposits. The current system works by essentially crediting the merchant an IOU, whose value does not have to be real. With crypto merchants get to choose, would they rather have native crypto, or an IOU with strings and contracts attached? Obviously the latter is more risky, and therefor the seller has to factor it into the price/ transaction fee.
Maybe that can be somehow circumvented too. But it certainly is more difficult then the meddling that happens right now.
Yeah I guess u’r right. Fractional lending rn is very important for monetary policy. And monetary policy is VERY IMPORTANT. But I could see a completely digital currency having good monetary policies without interest rates and fractional reserves. Perhaps, a simple gas fee increase/decrease could work. I dunno, I’m too tired rn lol
Well technically you could also have crypto banks which pull the same shit. The advantage of blockchains is better security and integrity.
Well their can not be uncapped fractional lending as it is right now. The bank could offer a credit card equivalent, but it would need an equal amount of deposits. The current system works by essentially crediting the merchant an IOU, whose value does not have to be real. With crypto merchants get to choose, would they rather have native crypto, or an IOU with strings and contracts attached? Obviously the latter is more risky, and therefor the seller has to factor it into the price/ transaction fee.
Maybe that can be somehow circumvented too. But it certainly is more difficult then the meddling that happens right now.
Yeah I guess u’r right. Fractional lending rn is very important for monetary policy. And monetary policy is VERY IMPORTANT. But I could see a completely digital currency having good monetary policies without interest rates and fractional reserves. Perhaps, a simple gas fee increase/decrease could work. I dunno, I’m too tired rn lol