> I'm assuming this means that Banks basically need to operate with 100% reserve ratio No, not the case at all. You can do fractional reserve banking with a f

> I'm assuming this means that Banks basically need to operate with 100% reserve ratio No, not the case at all. You can do fractional reserve banking with a foreign currency as legal tender. Heck, you can even do it with gold as legal tender, which I always find ironic given how gold backing and the perceived evils of fractional reserve banking seem to go hand-in-hand, ideologically.