Depositors are coming it to accept the banking institution risks for a service/yield.
Same as blockfis of the world. If the bank loses your money, then your money is lost.
Idk, I'm missing something maybe. What is an alternative scenario in a siund money system of a bank going bust and not having to do partial bail in?
Of course. If you deposit money, you take the risk and are ultimately giving up custody.
Bail out - sly devaluation via inflation (impacts all currency unit users)
Bail in - isolated devaluation of depositors. Agreed, better and more of a free market option (as long as depositors are aware and it’s not intentionally obfuscated)
