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A comment on Bizarre Shadowy Paper-Based Payment System Being Rolled Out Worldwide. Parent comment

Re:Bizarre Shadowy Paper-Based Payment System Being Rolled O... by maxerickson on Tuesday February 18, 2014 @03:46PM (#7260920)
Yes it does.

I think maybe you are talking about the money creation that a central bank can do. That involves more than just fractional reserve banking, but it often is done in the context of fractional reserve banking.

[ Parent | on HN ]
Re:Bizarre Shadowy Paper-Based Payment System Being Rolled O... by antr on Wednesday February 19, 2014 @11:05AM (#7264233)
> Yes it does.

Wow. Information/knowledge is one click away. I highly advise Google.

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Re:Bizarre Shadowy Paper-Based Payment System Being Rolled O... by maxerickson on Wednesday February 19, 2014 @11:40AM (#7264446)
I searched out this:

https://www.khanacademy.org/economics-finance-domain/core-fi...

It would be useful for you to explain how 'making loans of deposits' is not a reasonable simplification of that.

Of course actual banking practice is more complicated, but the core meaning of fractional reserve banking is to make loans (or investments, but that is a reasonable thing to leave out in a simplification) out of (demand) deposits (the difference between a deposit and a demand deposit is just a technical matter, for btc the lending institution and depositor would have to work out how immediately available the deposited coins would have to be).

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