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> You can show up at a bank and demand your balance in central bank money aka cash. If everyone would try to do that the system would collapse. The system is b
by ascar 6y ago
> You can show up at a bank and demand your balance in central bank money aka cash.
If everyone would try to do that the system would collapse. The system is built upon the assumption that the vast majority of people don't do that.
- globular-toast 6y agoWhen people do do that, it's called a bank run: https://en.wikipedia.org/wiki/Bank_run https://en.wikipedia.org/wiki/Bank_run This happened to Northern Rock in the UK in 2007. The bank failed and was nationalised as a result.