The other day, the US central bank denied accreditation to Custodia Bank of Wyoming, a financial institution that reserves $1.08 for every dollar invested by customers.

While there appears to be a need for such a bank in the wake of the collapse of the top three US banks, the Federal Reserve said board members have "heightened concerns" about institutions planning to focus solely on direct banking.

The Federal Reserve Board clarified that Custodia's application was "inconsistent with the factors required by law. Custodia will be different from the many banks currently in operation as it holds a full reserve and even more funds to cover deposits."

Narrow banking is a system that restricts lending activities to safe, low-risk investments and maintains a 100% provisioning requirement for these investments. This is called “100% reserve banking”.

On the contrary, 100% of all US banks use a fractional reserve scheme. This is when, in simple words, the bank has collected deposits in the amount of $1 million, and it has only $100,000 of real coverage for these obligations. But on the other hand, he has $10 million worth of assets, that is, loans issued. In the event of a delay in the return of even 10% of loans, any bank runs the risk of becoming bankrupt.

By denying the Custodia Bank the right to conduct banking activities under the pretext of the bank's narrow focus on serving customers who own cryptocurrencies, the Fed is allegedly fighting the dangerous crypto industry. And many may get the impression that regulators are simply clamping down on any bank that wants to become a gateway from fiat to cryptocurrencies.

In fact, the Fed is afraid of competition. And while the head of the Fed said last week that the US central bank does not consider the introduction of the CBDC as something necessary, in fact, the digital dollar will most likely be launched in July 2023. The CBDC has an undeniable advantage over the regular US dollar. The main and only issuer of the Fed's digital dollar can never go broke.

And commercial banks, as many American analysts expect, will suffer the fate of Silvergate Bank, Silicon Valley Bank and Signature Bank. Frightened people who have lost their fortune in bankrupt banks will not need to be explained why the digital dollar is better than the usual fiat one, and the rapid adoption of the digital dollar will be ensured.

However, if there is a commercial bank on the market that covers all obligations to clients with a coefficient of 1.08, it is not difficult to guess where the deposits of large clients will be transferred. Custodia has every chance of becoming the #1 bank in the US in a short time. This is exactly what the Fed does not want.

It is more profitable for the American central bank that commercial banks work according to the scheme when only 10% of their liabilities are fully secured. So to carry out the bankruptcy of the largest banks can be quickly and efficiently. Therefore, bank debts are growing at a record historical pace. короче пи зд ец... это не лечится... и 99% возьмут этот валютный фон...