I agree, on principal I wouldn't accept captive bitcoin; Not my keys, not my coin. But I doubt the average dolt understands that he and his associates are destroying the world by doing so. The problem with fractional reserve banking is that it doesn't require the government to make it possible. It only needs the government to make it stable. The reason it exists at all is that it makes possible 'cheap' money with lower interest rates than are possible with full-reserve banking. We as bitcoiners hope to make bitcoin so simple that everyone will use it. That's the whole point of it, its a better deflationary alternative to the government issued debt-backed currency, but it only works if everyone understands why its valuable. Nothing works if it depends on everyone adopting a certain ideology. Christianity wouldn't be here today if the early Christians said their faith is only valid if everyone believes the same as them. Bitcoin, like Christianity, if its going to 'work' it needs to withstand diversity of thought. As I said earlier, the 'out' we have from creating a new fractional reserve currency based on bank-issued bitcoin-backed debt notes is that bitcoin is 'easier' to hold, to store, and to transfer than a bank issued currency. Bitcoin likely will win out on its merits alone, but we should be standing ready to call it out with a full understanding of what they are trying to pull-off when something like this does finally emerge.