Fractional Reserve Banking 🏦 If you're not OK with this...then opt out and opt in to #Bitcoin🫡 It's very simple #BitcoinBlok
Fractional reserve banking operates by allowing banks to lend out a portion of their deposits while retaining a fraction as reserves to meet withdrawal demands.
When a customer deposits money, the bank keeps a required percentage, known as the reserve requirement, as reserves, determined by the central bank.
For instance, with a 10% reserve requirement, a bank must retain $10 for every $100 deposited and can lend out the remaining $90.
This lending process effectively increases the money supply, as the $90 lent out can be redeposited into the banking system, further multiplied through subsequent lending rounds.
#Bitcoin #fractionalreservebanking #Banking #Money #assets #BeOG #Plebchain
The Bitcoin Blok
npub1fv…07vsz
2024-08-02 13:53:07
Author Public Key
npub1fvs2vqkch6csfn4uuuskh2r0cmnc0q2dpqypkczc6s0dpdt3206sy07vszPublished at
2024-08-02 13:53:07Event JSON
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"content": "Fractional Reserve Banking 🏦 If you're not OK with this...then opt out and opt in to #Bitcoin🫡 It's very simple #BitcoinBlok\n\nFractional reserve banking operates by allowing banks to lend out a portion of their deposits while retaining a fraction as reserves to meet withdrawal demands. \n\nWhen a customer deposits money, the bank keeps a required percentage, known as the reserve requirement, as reserves, determined by the central bank.\n\n For instance, with a 10% reserve requirement, a bank must retain $10 for every $100 deposited and can lend out the remaining $90.\n\n This lending process effectively increases the money supply, as the $90 lent out can be redeposited into the banking system, further multiplied through subsequent lending rounds.\n\n#Bitcoin #fractionalreservebanking #Banking #Money #assets #BeOG #Plebchain \n\n\n\n\n\n\nhttps://video.nostr.build/abadb9ec0f9ea2a93d9f770fc52611d69bd50774ed677bb198889f26bae17e0d.mp4",
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