Hacker Read

IrnBru | karma 6 | avg karma 1.2 · 2023-03-11 15:22:19

Not true. Imagine there was only ONE bank.

spacebanana7 | karma 1281 | avg karma 2.0 · 2023-03-11 16:18:39

I see what you’re getting at but people could still withdraw paper money or do international transfers.

A single global bank in a world without paper money/gold/etc might be different.

IrnBru | karma 6 | avg karma 1.2 · 2023-03-11 17:03:56

Of course I am being simplistic and a run can occur precisely because there is more than one bank...

But on the international transfer thing... you selling USD and buying EUR doesn't result in the creation or destruction of any USD or EUR deposits overall, unless the central bank/government is intervening.

reply