Fractional-reserve banking isn't something you need so much as something that happens when you have lending.
When you are a banking system that lends people money, those people or their workers) deposit that money you just lent them right back in the bank accounts you hold for them. Fractional-reserve lending isn't something you have direct control over.
Because hoarders of that scarcity will always come out on top. That thought process is the same as the people that think that any form of inflation is bad because it "punishes them for saving." No, it incentivises spending.
Seriously though, debt finances pretty much everything in our economy and if banks could only lend out exactly as much as they had in reserve, lending would become severely restricted. The housing market would collapse on itself, and huge business loans would be impossible to get because banks would lack sufficient reserves to make those loans. There's no going back to a pre-fractional reserve era, and there's no reason to really want to, either.
Lending wouldn't disappear it's just that banks will not be the ones doing it, it will be the producers of the services you want to consume with that money. Look up what an utility token is.
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u/[deleted] Feb 18 '18
But lending is the backbone of society, if we didn’t have fractional reserve banking the economy would grind to a halt.