Replying to Avatar Brunswick

Operating a cashu or fedi mint with insufficient bitcoin backing isn't fractional reserve, it is theft. Fractional reserve lends out reserves, and those loans are assets held by the bank. Fractional reserve isn't technically theft because your account deposits are seen as loans to the bank.
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HODLBurger 1y ago

This is what I was trying to articulate.

A mint can print more tokens into existence expanding the total amount of ecash that's supposed to be pegged to sats. Its only detectable if there's a deep enough bank run.

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