News for hackers. Stuff that matters.

A comment on Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work. Parent comment

Re:Binance outflows hit $6B as Mazars halts ‘proof of reserv... by hn_throwaway_99 on Saturday December 17, 2022 @02:04PM (#34030991)
Hence the "without your permission" caveat. Point being, when you lend your assets to brokerage, it's explicit, unlike a fractional reserve bank, where deposits are inherently lent out (and no need to comment that fractional reserve banking doesn't "really" work this way, I get it, but deposits are still part of the capitalization of the bank).
[ Parent | on HN ]
Re:Binance outflows hit $6B as Mazars halts ‘proof of reserv... by imtringued on Saturday December 17, 2022 @07:12PM (#34033672)
To be fair, it would be better if you explicitly lent money via certificate of deposits to the banks because it means their job is much less risky. The fractional reserve banking model isn't really something to imitate, it is a rather ugly hack that we cannot do without when people don't get enough CDs.
[ Parent | on HN ]