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by brookst
1123 days ago
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I don't think any modern (post-1600AD) bank ever just kept depositors money ready for withdrawal. Mixing shareholder equity with depositor funds is a totally different thing. In general, depositors are a bank's most senior creditors (they get money before the electric bill gets paid) and shareholders are the least senior (they only get money after ever single other bill is paid). Mixing these funds makes a mess of that promise and should rightfully reduce trust that Binance would be willing or able to pay depositors in a crisis. |
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> I don't think any modern (post-1600AD) bank ever just kept depositors money ready for withdrawal.
I'd have thought it was a more modern issue, but let's agree. And that seems in any case perfectly fine for most, or at least for many people. Incidentally, playing with customer money was what FTX has been doing, albeit it was amateur, no official oversight, ...