it's difficult to imagine an economy that functions entirely without institutional lenders to provide credit, and difficult to imagine how institutional lenders could exist if everyone kept their money in crypto wallets instead of bank accounts.

anyone seeking credit would be entirely reliant on entities who have large piles of crypto sitting around that they are willing to depart with temporarily, or possibly crowd lending platforms where people have willingly deposited their crypto to earn interest on it.

but by the time you start to deposit crypto to a crowd lending platform, that's almost a bank. it's just missing the fractional reserve part, which is arguably a feature and not a bug most of the time...