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> My bank only needs to keep 10% of its deposits backed by cash, securities. True, but your FIAT is FDIC insured to an extend. Neither Tether nor any of these
by aikah 7y ago
> My bank only needs to keep 10% of its deposits backed by cash, securities.
True, but your FIAT is FDIC insured to an extend. Neither Tether nor any of these funny moneys are.
Furthermore, I'm pretty sure non accredited banks cannot run fractional reserves legally.
- notahacker 7y agoAlso, fractional reserves are fully backed by outstanding loans due for repayment, which is not the same as being backed by nothing. A decade ago, we saw how bad it was for the whole ecosystem when more loans than expected turned into nothing... That's not at all similar to Bitfinex only pretending to back Tether.
- ceejayoz 7y agoAlso also, banks don't falsely claim "we're not fractional reserve" on their websites for years.