Why is it impossible with Bitcoin? This is already taking place. How do you think the interest bearing crypto accounts work? Rehypothecation, lending the same coin possibly multiple times.
I’m not sure I get it. Only one person can own a Bitcoin at a time.
So some people of reinvented fractional reserve banking. But now with the problem that it’s unregulated, unbackstopped by a lender of last resort and ultimately through rehypothecation you’ve virtually eliminated any advantage gained by using blockchain technology.
https://blockfi.com/an-introduction-to-rehypothecation-with-...