I don't see the proposal mentioned at https://mastodon.social/@axios/112187928102716826 having any impact on bank runs. Bank runs happen because people begin to believe their funds are at risk. In any system other than "pay us a set fee for holding your money", banks will depend on lending (making loans, buying bonds, wiring funds overnight to help weaker institutions look stronger on official forms) ... and as long as that is the case, a bank run is possible.

Under fee-based funds-holding, banks could have 100% of deposits in a quickly-available form and defuse the rumors that "Bank X is in trouble and you might lose money if you don't withdraw immediately".

Having said all that, I'm not advocating that we replace lending-based banking with fees-based banking. For one thing, someone would still need to provide lending-based funding to Americans ... from credit cards to car loans to home loans. !econusa