If there would be a bitcoin central bank it would not be a bitcoin anymore. :-)
It would be just another currency controlled by a group of people or a government.
Topic: [2014-08-25] Why There Should Be A Bitcoin Central Bank - page 2. (Read 2203 times)
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Saw this in Bitcoin discussion as well
A fractional reserve will not work in bitcoin, if a company wants to operate a fractional reserve they can easily due it with the fees they generate and then keep the bitcoins to become their reserve.
A 1% Fee on 1 BTC moved 100 times is a 1 BTC reserve scaled up with enough users and they can easily cover their exchanges position given time.
If a bank screws up, the argument maintains, it should face the consequences alone, rather than letting all economy participants across the system to share the pain in the form of debased per unit currency value.
Correct, we don't need Bailouts.
A fractional reserve will not work in bitcoin, if a company wants to operate a fractional reserve they can easily due it with the fees they generate and then keep the bitcoins to become their reserve.
A 1% Fee on 1 BTC moved 100 times is a 1 BTC reserve scaled up with enough users and they can easily cover their exchanges position given time.
If a bank screws up, the argument maintains, it should face the consequences alone, rather than letting all economy participants across the system to share the pain in the form of debased per unit currency value.
Correct, we don't need Bailouts.
Why would someone prefer an IOU on Bitcoin over Bitcoin itself? In traditional banking IOUs make sense, because it is safer and makes the money easily transferable. But with Bitcoin there is no such advantage. Also, who would borrow Bitcoins at astronomical REAL interest rates? Fractional reserve banking will never work with Bitcoin.
http://www.forbes.com/sites/ericxlmu/2014/08/24/why-there-should-be-a-bitcoin-central-bank/
It is no secret that today, almost all modern banks operate on the basis of fractional reserves. To put in simpler terms: banks only has in their vaults a small percentage of the money that their customers gave them; if a large enough number of customers of a specific bank want to get their money back, the bank wouldn’t be able to meet the demand. Before there was modern central bank system, the bank could either have to borrow or file for bankruptcy.
It is no secret that today, almost all modern banks operate on the basis of fractional reserves. To put in simpler terms: banks only has in their vaults a small percentage of the money that their customers gave them; if a large enough number of customers of a specific bank want to get their money back, the bank wouldn’t be able to meet the demand. Before there was modern central bank system, the bank could either have to borrow or file for bankruptcy.
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