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This ignores that the deposit is also money.

Yes, stacking money is based on trust. Realistically, a 6-month $101 government bond which costs $99 should be valued about $100, and a bank deposit stacked on $101 of government bonds should be worth about $100, as long as trust in those continues to hold. And this sort of thing does happen in cryptocurrency systems. Stablecoins generally trade for a fraction of a cent less than their corresponding fiat currency. Bonds may trade for more, if the promise of interest is accepted, but less than their redemption value.



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