bitcoin banks will have to work more like sharia banks not like banks in the west
Im not sure I understand.. I looked up sharia banking but it all seems like a shell game to comply with the Islamic law against charging interest while still charging interest.
The situation I am talking about is this:
1. Person A has $1000 in the bank
2. Bank loans $1000 to Person B who pays Person C who puts it in the bank
3. Now Person A has $1000 in the bank AND Person C has $1000 in the bank.. and its the same $1000.
Wash, Rinse, Repeat..
This is why we have FDIC deposit insurance in the USA so when everyone wants their money back and all that money doesnt really exist.. the government just steps in and makes up the difference (perhaps by printing more money)
Also, you want to take loans in the same currency you are paid in. Otherwise you can get slaughtered by market fluctuation.