What is the point of minting a coin out of silver? The process of making it pretty and artistic adds cost that is destroyed when the silver gets melted down someday. And if it's not going to get melted down and used for something then what's the point of bullion? It's a pretty trinket.
>>4289638'>I'll issue you a dollar, yeah, but for the convenience you need to pay 5 cents. I'll take the 5 cents now, and you still owe me that dollar..
So if they make this deal with 20 people and one goes bankrupt without paying the dollar back them they will have broken even.
Banking will always involve interest regardless of the currency. It make no difference whether it's fiat or metal.