Post
Topic
Board Economics
Re: Is there any change that protect crypto from fractional reserve style stuff?
by
odolvlobo
on 22/11/2021, 11:53:59 UTC
Fractional reserve banking type of things can be done with fungible items. Is there any change to bitcoin (or bitcoin style crypto) that would make fractional reserve banking or something else, impossible or harder to exist?

Bitcoin's fixed supply does limit FRB compared to fiat because the risk of collapse is greater as the reserve ratio goes lower. With fiat, there is an unlimited supply of money available to prevent a collapse so the reserve ratio can be 0.