Also, it's been shown, by the Tether USD caper, that most cryptocoin
   users could care less if there is no proven backing for the fiat they
   use at exchanges.

   On Jan 7, 2018 7:27 PM, "Steven Schear" <[1]schear.steve@gmail.com>
   wrote:

   Yes, it's a rather open secret that LN channel abuse, esp. using Hub
   architecture,  can do FR just link banks.
   [2]https://www.reddit.com/r/Bitcoin/comments/56ehi1/
   fractional_reserve_on_lightning_network/
   By never closing channels it difficult to detect what's going on.

   On Jan 7, 2018 6:41 PM, "juan" <[3]juan.g71@gmail.com> wrote:

     On Sun, 7 Jan 2018 18:32:19 -0800
     Steven Schear <[4]schear.steve@gmail.com> wrote:
     > The way payment channels can be reasonably used enables fractional
     > reserve abuses.
             Are you sure? As far as I know,  one of the main selling
     points
             of the LN is that it uses...bitcoins. So it's impossible to
             open a channel/make a payment except by starting with an on
             chain transaction. In other words, LN transactions are
     backed
             1:1 with real bitcoins.
     >
     > On Jan 7, 2018 6:24 PM, "juan" <[5]juan.g71@gmail.com> wrote:
     >
     > > On Sun, 7 Jan 2018 17:38:02 -0800
     > > Steven Schear <[6]schear.steve@gmail.com> wrote:
     > >
     > > > Off-chain, once solid tech that isn't a
     > > > backdoor for CBs and WS (as LN appears to be), should easily
     > > > compete with VISA.
     > >
     > >
     > >         how is lightning network a backdoor for central banks?
     > >
     > >
     > >

References

   1. mailto:schear.steve@gmail.com
   2. https://www.reddit.com/r/Bitcoin/comments/56ehi1/fractional_reserve_on_lightning_network/
   3. mailto:juan.g71@gmail.com
   4. mailto:schear.steve@gmail.com
   5. mailto:juan.g71@gmail.com
   6. mailto:schear.steve@gmail.com