Any Ripple gateway that establishes a solid reputation will be tempted to switch to fractional reserve issuance of its own IOUs to increase leverage (which is exactly what the existing comercial banks ...
There are topics about the possibility of e-wallet providers operating like fractional reserve banking. How it can be done in theory and practice? Did it ever happen on any meaningful way in ...
I was a little bit shocked to learn that many (if not all) hosted e-Wallet providers combine their customers money in the hosts account, instead of just providing a service for easy access and storing ...
A comment on this answer pointed out that the total amount of bitcoins in circulation could appear to go above the limit of 21m if wallet services use a fractional reserve system. However, in that ...
Suppose Bitcoin lenders (banks, creditors, investors) issue loans with interest. As the total supply of Bitcoins approaches the 21M ceiling, the total amount owed in outstanding interest will exceed ...