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But we have insurance on deposits in the US/Canada. Also DAO are trying to replicate fraction reserve lending. So basically we have protections against this p
by bhouston 5y ago
But we have insurance on deposits in the US/Canada. Also DAO are trying to replicate fraction reserve lending.
So basically we have protections against this problem in the traditional system and the crypto system is trying to replicate fractional reserves.
Tether also is engaging in massive fractional reserve lending. Apparently only 3% of Tethers are backed by cash holdings: https://news.ycombinator.com/item?id=27151370 https://news.ycombinator.com/item?id=27151370
- koonsolo 5y ago> the crypto system is trying to replicate fractional reserves. That is not a fair statement and you know it. Only a fraction of cryptos maybe. Most do not.