Is there any change to bitcoin (or bitcoin style crypto) that would make fractional reserve banking or something else, impossible or harder to exist?
What I can think of is the volatility and the asset it is valued against. If Bitcoin is operated as an asset which is calculated simply on its value, then a fractional reserve system could work, as money loaned in Bitcoin would be payable in Bitcoin.
So if Mr A deposits 1.5
BTC, and the bank keeps 0.3
BTC, while lending out the remainder to Mr B, who is expected to repay the 1.2
BTC as well as the interest on it. Volatility would not be a factor as the value is of itself.
As some example, would Demurrage make it harder to happen?
As a scenario, how do you imagine demurrage can affect it's usability?