Author: Eric Voskuil 2021-07-09 23:18:26
Published on: 2021-07-09T23:18:26+00:00
The conversation is about the concept of 100% reserve banking and whether it is possible. The speaker argues that putting money in a bank is lending to the bank, and any interest earned comes from the bank's investments. They also argue that depositing money in a bank is legally defined as lending to the bank. The discussion goes on to talk about money market funds which have had no reserve requirement and have a nearly spotless record of satisfying their obligations. The speaker suggests using your own wallet if you want full reserve banking. They also argue that proof of 80%/50%/20% reserves is still useful if that's the clear expectation for the customer/client. Finally, the schemes don’t preclude hacks, insider or otherwise, bankruptcy, or state seizure, no matter what the reserve.
Updated on: 2023-06-15T00:12:02.356600+00:00