I've heard this suggestion in lots of places - mainly silicon valley people who didn't really think about banking a lot until the collapse of SVB (the All-In po

I've heard this suggestion in lots of places - mainly silicon valley people who didn't really think about banking a lot until the collapse of SVB (the All-In podcast had a monstrously bad segment on this for example). The problem is that those suggesting this aren't really engaging with how our finance system works. What they're saying is "I don't want my money at risk" but what they're proposing is "I don't want to ever be able to get a mortgage". They're saying "I'd be happy with an account that doesn't pay interest" but actually, if this product was offered, you'll likely find people still opt for the interest paying accounts that have risk because they aren't really capable judging that risk. It's also just quite a difficult thing to imagine happening, can you imagine it - out comes this product from a bank "100% backed, guaranteed not to default, 20bps charge, 0 interest", and let's imagine it really is popular and capital flees to it. You've just caused the single biggest run on the US banking system in history. How do you mechanically actually make this work?