The problems with this go a lot deeper than most people realize, but I can't summarize them here. I strongly recommend reading the following paper to understand

The problems with this go a lot deeper than most people realize, but I can't summarize them here. I strongly recommend reading the following paper to understand the importance of cash: http://www.paecon.net/PAEReview/issue80/Huber80.pdf http://www.paecon.net/PAEReview/issue80/Huber80.pdf Huber, Joseph - Split-circuit reserve banking - functioning, dysfunctions and future perspectives Abstract: "This paper first provides a detailed outline of how the present money system works. This then serves as a backdrop to discuss a number of orthodox fallacies and heterodox flaws in money theory, followed by a summary of the dysfunctions of split-circuit reserve banking and a brief outlook on the perspective of a single-circuit sovereign money system." Keywords: monetary economics, money theory, credit creation, banking theory, fractional reserve banking, monetary policy, monetary reform One may find comments on the paper here: https://rwer.wordpress.com/comments-on-rwer-issue-no-80/ https://rwer.wordpress.com/comments-on-rwer-issue-no-80/