Tag: Fractional Reserve Banking
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Disrupting Fractional Reserve Banking with Distributed Ledger Technology (DLT)
The financial world is on the brink of a revolution. Distributed Ledger Technology (DLT), the backbone of cryptocurrencies like Bitcoin, is poised to disrupt traditional banking systems, especially the practice of fractional reserve banking. This blog post explores how DLT could reshape our understanding and interaction with financial systems, focusing on its impact on fractional…
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What Is Fractional Reserve Banking?
Most large economic systems today use fractional reserve banking to stabilize and grow their economies. With factional reserve banking, banks can lend out deposits with interest to amplify the economy. The Federal Reserve was founded in 1913 to better regulate the banking market so that banks didn’t run out of money and people could get…