REPEAL LEGAL TENDER LAWS
FRACTIONAL RESERVE LENDING WOULD BE ILLEGAL
Although Stage 1 involves setting up some kind of service-based government banks, they would not be the only ones. In Stage 2, other currency and banking systems should be encouraged and allowed to compete for customers. Banks could take multiple forms – and they all need to compete in the open market. Some issue local currencies; others are 100% backed by silver or gold; others owned and run by community members, etc. Fractional reserve lending would be illegal to safeguard borrowers from fraudulent banking practices.