Topic: Banks are facing a new threat, and it is not Bitcoin (Read 650 times)

I cannot think of this happening. The change will be so deep, so profound, that things will likely get very crazy. If money stored by people cannot be put into action by banks (and that is what a 100% reserve would mean) there will be not enough money in circulation to do hardly anything.

The comments in this thread are so illogical that it can't be considered anything but chronic stupidity or paid anti-bitcoin shilling.

Yes, fractional reserve is a scam, but if all banks did such a thing, it would basically be flipping a lever from the fabled infinite growth economy to immediate economic implosion.  The last thing you would need to worry about is "is this good or bad for Bitcoin?".  It would be good for Bitcoin since the legacy financial system would likely cease to exist.  It's also not really possible without introducing a new financial instrument.  What are they going to do, margin call everyone on earth with a mortgage?  Even if it was not applied retroactively, it would still be a deflationary collapse, and the world is already headed towards a deflationary collapse without them doing this.

So yea, this is basically what you do after the system we already have collapses with your goal of being to convert from failed infinite growth model to sustainability.

True, without the bank I hope there is nothing possible because anyhow the digital money will come out from ATM as a local currencies to withdraw. Otherwise we all have to purchase our all items online only. Any kind of threat to banks or Bitcoins will not effect them.

The idea that banks will need to back up all deposits, is not ever possible.
This can never happen with the current world financial system.

Fractional Reserve Banking can never be reversed,
it is a mandatory feature/result of/for continued financial growth.
It must continue "forever" or the system must collapse in its entirely.

This proposal can only be possible after an extreme depopulation of human depositors.
Then the system can readjust and have enough to cover "all deposits".

There are no corrections. Those days are over.
What Europe is proposing is a sign of the end. Desperation.

Great. This is precisely the nemesis of bitcoin. I was talking about bitcoin today, advertising it to some friends, and this precise point is the one I said I was afraid of. Bitcoin was created as an alternative to inflationary fiat, which is at the basis of today's crisis. If fiat becomes deflationary, than that's a serious blow to bitcoin. I don't fear banks as much as I fear another alternative to the inflationary-based crisis.

Of course bitcoin has other advantages than being deflationary but right now, the biggest one is that one, because of the inflation getting out of control.
Besides, bitcoin is still young, and, I was about to say, weak. It needs to be consolidated. It doesn't need a nemesis. I'm not saying that this is the death of bitcoin because it would be too easy and bitcoin is already stronger than that, but it sure will be a big blow :-/
Especially for the European market, since the other big advantage of bitcoin is cheap transactions, which Europeans don't care about because they already have them.

The news is from the end of last December. I guess this is one of the reasons why BTC dropped from $460+ to $430 recently. Only guessing here, though. If so and provided everything stays in place from now, than it seems to be quite ok. The market didn't lose much faith, comparatively to my fears.

Any competition is a good thing in my personal opinion. The free mark will set you free

Hi Jet Cash. Most of the financial institutions when are in a financial crisis will go for a loan from the central bank so as to meet the demands of the reserve. Even though the banks do make enough, there is always a bigger chunk that is stolen through the invention and technology related methods. This makes them have a shortfall and thus the reason why they may have the fraction reserve that is below the required one.  It is always a complicated thing.

I posted this a week ago

they are proposing a switch to Crypo ie fixed

and wheres Frank also

Frankie B**** him

This is not going to happen soon... the world has got used to mountains of debt due to the fractional reserve banking. To reverse this, they would have to stop loaning money

they do not have in reserve, and that would not happen... governments will struggle if the economy is not artificially stimulated. They will have to call in these loans and that

would spread panic and chaos in the developing countries, who would not be able to do this. 

Why it  may have negative impact on bitcoin.It is very cruciual referendum in Europe.I am sure  banking industry will do everything to stop it.Finally it will happen in Europe,that movement is more and more popular in Europe and is supported by IMF chief Madame Legarde

I don't think there's any doubt whatsoever that fiat banks/national currencies will crumble. I just worry that I'll be dead when bitcoin or whatever replaces the banks takes over.

Sure handing bitcoin/a legacy down to children & grandchildren to prosper from sounds great but I'd like to enjoy some fruits of my own labor

It remains to be seen if other nations will adopt this new system though. I doubt that the US or EU will do something similar soon.
And it may make Bitcoin a tiny bit less appealing, but is still holds more benefits other than being deflationary.

But will banks have to call in loans to meet their reserve requirements?

though it can stop the fraction reserves, it has a side positive that fiat ends up being deflationary instead of inflationary.
which bankers will just trade the markets on as deflation makes swiss currency more valuable.
banks will love it. more profit without the hassle of loan defaulters.

many think banks will hate it, but they will just switch gears and adapt. not really a threat to fiat but can make people prefer to hold onto their fiat, which reduces bitcoins desirability

Sounds good. Fractional reserves have caused a massive increase in debt around the world. The other interesting change is bankers being locked up for counterfeiting. This is done by creating virtual currency that pretends to be real fiat currency.

Another interesting change will come when China pegs the Renminbi to their gold reserves.

Banks are now facing a new threat. This new threat is not Bitcoin and besides being a menace to the Banking system it might also have a negative impact on Bitcoin.