You are absolutely right about that. Which is another reason why traditional banks are a not likely to jump on this straight away. Liquidity is not an issue fo

You are absolutely right about that. Which is another reason why traditional banks are a not likely to jump on this straight away. Liquidity is not an issue for most of the applications I hear planed using OpenTransact as they typically operate with 100% reserves. I am very particular personally to the Narrow Banking http://en.wikipedia.org/wiki/Narrow_banking http://en.wikipedia.org/wiki/Narrow_banking ideas as a replacement for the traditional monolithic multipurpose banks, where again this would not be an issue. Taking a hypothetical narrow banking world to it's extreme using OpenTransact a typical everyday bank consumer needs could be split by functionality into 5 different narrow companies with each their function: * A financial supermarket end that only resells financial services to replace the traditional bank branch * A narrow banking cash account structured as a cash mutual fund. 0% interest, 100% reserve. * A money market mutual fund for savings * A card issuer linked to your cash account offering a visa debit card service * One or more exchanges for transferring funds between banks instead of ACH I am not even mentioning credit here, but credit and insurance can all be offered by different institutions like http://prosper.com http://prosper.com again using the Narrow banking model. Obviously the above example assumes that our financial needs are all going to be the same as today. More than likely we will see financial products that are completely different than what we see today. In particular because the existing banks are not likely going to give up their existing revenue sources.