As I said before, I don't understand your example of BMW lending cars, so let's keep it simple and proceed now from bitcoins (apart from gold). FRB is irrelevant here, and to make things even simpler, let's assume there are no reserve requirements at all (a good assumption since there is no Central Bank to begin with). Could the banks then create bitcoins out of the thin air just like they are said to do with fiat?
No they can't create bit coins. But they can still create credit money
But the credit money created by today's banks is the same fiat that is emitted by the Central Bank. And do you know why?
