Replying to Avatar BitcoinStu

That's not really true. Banks are heavily regulated and forced to obey the fiat masters at the Treasury and Central Bank. There are plenty of banks that would love to get involved in bitcoin and stop buying those garbage treasuries, but they can't.

Bitcoin will reform the banking industry by giving them a form of collateral that can be settled almost instantly.
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Cygus 44 1y ago

Sorry my friend, that's wrong. What do you think how banks earn money?

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BitcoinStu 1y ago

Commercial banks earn money in a variety of ways:

1. private loan interest

2. mortgage interest

3. account maintenance fees

4. transaction fees

5. loan origination fees

6. holding securities

7. proprietary trading

8. wealth mgmt and advisory services

9. credit card interest

10. forex trading

11. underwriting services

12. investment banking (mergers and acquisition advisory, capital raising, market making

13. Loan securitization

14. mutual fund fees

15. etf trading fees

16. insurance products

17. safe deposit boxes

18. federal funds lending

19. holding government treasuries which provide a yield.

Those are some off the top of my head.

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BitcoinStu 1y ago

if you study the space you'll find that many banks do not want to fractionally reserve but they are, again, forced to by US banking regulations.

I'm guessing you don't really know as much about commercial banks as you think. But if you dig into it you'll find that the way banks operate, in a predatory and hostile way, is caused primarily by the draconian regulations they are forced to follow to maintain their licensing.

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Cygus 44 1y ago

But you know, that banks can create money out of thin air and the fractional reserve is just a small part of that, they need as equity capital?