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15 sats \ 2 replies \ @kilianbuhn 18 Oct 2022 \ parent \ on: Where does the FED store their US Dollars? bitcoin
This is actually factually wrong. Demand-deposits are stored in two databases. As opposed to E-money like e.g. Paypal
Money at the Federal Reserve are not demand deposits tho, but an elaboration on what framework the databases of various banks and various central banks could be a fun read anyway, so feel free to elaborate.
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"demand deposit" is the wrong word - I think the theoretical name is "book money". It is the 2nd of the three money types. It consists of what is basically 1 person lending money and 1 person lending out money. Since both parties have a legal right to resulting balance - which is why it is two databases. This isn't yhe case for the 3rd of 3 types of money where your only claim to the mony is customer protection or whatever thus only one database
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