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There's no way to create "unbacked" bitcoin. You either have the transaction outputs pointing at your wallet address on the public blockchain, or you do not. No
by Karunamon 5y ago
There's no way to create "unbacked" bitcoin. You either have the transaction outputs pointing at your wallet address on the public blockchain, or you do not. Nobody wants or will accept FedBTC.
- astrange 5y agoCelsius offers interest-bearing bitcoin accounts which they use to do margin lending, so this already exists.
- Karunamon 5y agoSaid lending is denominated in stablecoins, not BTC. It's secured with a crypto, but that's not relevant. Unlike fractional reserve (which was the topic under discussion), this does not result in an increase to the money supply. No new BTC is created.