I see the issue now!  There's a disconnect between what we're discussing.  Let me try to be more clear.

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The gold standard was fractional in proportion to the number of pounds of gold you had on hand.  So, you could maybe lend out ten-gold-pounds worth of loans if you had one gold pound on-hand, but it stopped there.  There could be more money lent than gold on-hand because it was fractional, yes, but because it was based in gold and not debt, you couldn't just continue the cycle ad-infinitum.    Loans themselves could not form the basis of new loans.  In contrast, today, the basis of a new loan is nothing but another, older (sometimes only seconds older) loan.

People can decide for themselves what currency to use, and I like bitcoins, and hope that the currency takes off, I really do.  However, even a bitcoin-denominated economy would still be a *debt-standard* economy.  Banks would see that people were using bitcoins, and they would go, "Ooh, we can make money offering services in bitcoins instead of dollars."  However, the law would remain that even though loans were made in amounts expressed in bitcoins, those loans had the backing of other loans, not actual bitcoins.

To get bitcoins used as currency, you just need adoption.  We're getting that, and that's great.  However, what do you need to eliminate the debt-standard and ensure that all loans created are *backed* with real bitcoins?

A government decree.  A law from Congress or Parliament that declared that loans had to be based in bitcoins, not debt.  GLHF.  Besides, even if we got that, it would eliminate inflation, but it would make bitcoins just another government-controlled, monopolized currency.  That would kill at least half of the point, right?