Midnight thought on Bitcoin credit system using LN:

*Bank has LN liquidity channel of 20,000 Sats

* Bank gives credit account of 10,000 Sats (shows up as balance on LN wallet)

* Account holder pays 10 Sats for groceries with credit (LN wallet transfer)

* Bank transfers 10 Sats through LN channel to store’s bank LN address

* Bank can rebalance channel if channel funds get low

* Bank can provide channel funds as multiple of channel liquidity since transfer is limited only by ability to rebalance fast enough for all users to not have interruptions

* Proper channel management enables profit. Risk for credit default is eliminated since money is not created/destroyed, it’s based on future flow of Bitcoin in LN channels.

* LN public channel liquidity information keeps bank honest

* Bank routing node earns fees, participation by account holder increases transfers and thereby number of fees. Interest rate is LN fee rate.

Dumb idea?