Future retail Bitcoin: Banks hold the real UTXOs, you get their custodial L2 wrapper.
‘Buy BTC’ = buy bank permission slip.
Self-custody was the flex. Most will never know.
https://blossom.primal....
Unfortunately, everyone will not self-custody Bitcoin, and that is fine.
The ultimate thing is that, if and when banks begin to use Bitcoin as the reserve asset for issuing paper currencies (e-cash, Fiat-channels assets), they'll hardly ever run fractional banking, and if they do, they'll be at risk of irredeemable bank run since there wouldn't be the Fed back-stop to fall on because the Fed can't mint more Bitcoins.
Users will be more attracted to banks running full reserve banking. Also, banks who run fractional banking to the level it is done today, may have to ensure that their users are consenting to the fractional banking practice, and that they understand the risk. This also means that users who choose to take the risk will benefit adequately in the reward via good deposit interests unlike pennies being handed out today.
The ultimate thing is that, if and when banks begin to use Bitcoin as the reserve asset for issuing paper currencies (e-cash, Fiat-channels assets), they'll hardly ever run fractional banking, and if they do, they'll be at risk of irredeemable bank run since there wouldn't be the Fed back-stop to fall on because the Fed can't mint more Bitcoins.
Users will be more attracted to banks running full reserve banking. Also, banks who run fractional banking to the level it is done today, may have to ensure that their users are consenting to the fractional banking practice, and that they understand the risk. This also means that users who choose to take the risk will benefit adequately in the reward via good deposit interests unlike pennies being handed out today.
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