Bitcoin upends the old model of a low cost deposit float funding loans because it’s the first money that comes with a built in self custody and payments functionality.

The bank deposit float could disappear completely at one extreme.

Or it could survive to some degree because users will continue to prefer bank custody over an account rather than manage it themselves.

Either way depositors now have a choice over whether they want bank risk or not.

And the result will be more considered allocation to interest bearing asset as distinct from allocation to cash custody and payment functionality.

This will probably lead to a reduced supply of money for lending activity and one driven by institutional investment more than by naive deposit activity.

And almost certainly to far more prudent and independently determined bank leverage ratios.