Wary
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March 03, 2015, 07:20:24 AM

The money that sits on saving accounts are not real money, because they exist in two or more places simultaneously. A dollar that sits on your saving account is at the same time lended to somebody else and sits on their current account too.
I'm sorry, but I really have to disagree with your analysis. You are making a distincion between real and not real/duplicated money. But you are actually describing inflation/money printing. This process is not the same as the definition of M2. However, I agree that fractional reserving can be done with bitcoin for companies like Coinbase / bitcoin banks.

That's not going to happen anytime soon. Even the NY Bit Licence requires 100% reserves in USD and BTC.
It have already happened. At Mt Gox.  Grin