Bitcoin cannot replace the banks – The Australian Financial Review

Misunderstanding over this is widespread enough that in 2014 the Bank of England put out a paper, Money creation in the modern economy, to clear things up. University textbooks teach that banks take in deposits, then lend them out. This is exactly backwards, the BoE explained. A commercial bank decides to make the loan first, then it tops up the balance in your account.
That top-up is brand-new credit money.
So-called fiat money derided by bitcoin supporters is usually defined as government-issued…

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