1. Bitcoin, central banking, and fractional reserve banking

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This paper discusses fractional reserve banking and whether it could emerge in a bitcoin economy. Is fractional reserve banking necessary for a growing economy? Can fractional reserve banking survive in a free market? Drawing on the academic literature on the topic, this paper analyzes fractional reserve banking, whether it could emerge in a bitcoin economy, and what the implications would be. The paper also discusses why central banks are unlikely to adopt bitcoin as a reserve currency. (14,150 words)