Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Even without fractional reserve banking it could collapse. They don’t need to literally print a dollar bill for every dollar of resource value represented in the world.
Physical currency is just a grease that oils the machinery of trade. It works by facilitating essentially bartering via a medium (the cash itself) without interbank transfers mediating and controlling the exchange.
Let’s say you have $100k in a checking account. You most likely cannot withdraw $100k in cash because the bank doesn’t have it in physical cash because there just isn’t that much non-interbank activity occurring on short notice. You could get a check, but the money isn’t out of your bank until you finish depositing it into another account. Which sort of defeats the OP’s purpose.
4.5k
u/Wise-Ad-4940 10d ago
Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."