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The definition of bank is not an entity that holds currency, otherwise any company or you or I are a bank. To keep it simple, Banks hold reserves because they
by julespitt 13y ago
The definition of bank is not an entity that holds currency, otherwise any company or you or I are a bank.
To keep it simple, Banks hold reserves because they lend. Paypal, for instance, is not a bank.
If your tiny Bitcoin startup holds $1000 in bitcoin, and your obligations are $1000, I don't see the problem.
- sliverstorm 13y agoThe definition of bank is not an entity that holds currency Ok, you're right, that's an oversimplified view.
- camus2 13y ago> Paypal, for instance, is not a bank. Paypal is a bank in Europe. A paypal account is legally a bank account here.