While fractional reserve banking with bitcoin is theoretically possible In order for fractional reserve Bitcoin to operate there has to be a lending market I know of none .Anyone who loaned bitcoin would have a very good chance of losing the lot as the individiuals borrowing would likely not and could not be forced to give up their private key nor could authorities access it witthout the private key.
tps://medium.com/@tonywillenberg/fractional-reserve-banking-the-bitcoin-crypto-economy-b2a9f2e28073
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