Bank of America Criticizes Proof of Reserves While Banks Need No Reserves. Anybody Smell Fear?

BoA put of a statement criticizing proof of reserves saying it has many shortcomings. I'm not even saying PoR is perfect, but it is a hell of a lot better than nothing, and we also are pushing toward proof of liabilities which Kraken, Gate io and Coinbase have already published proof of reserves with liabilities.

This is meanwhile funds is the bank require absolutely NO reserves. I'm not kidding.

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https://preview.redd.it/02dk75jrwc2a1.png?786&format=png&auto=webp&s=a2f3e5d1a509b3219aa728e9bbadc73d2fd2d79c

So basically, (American) banks can print infinite amounts of money with no repercussions, with other countries only partially limited to their lending by their own reserve ratios. As a matter of fact, since COVID, authorities have been actively encouraging bank lending particularly in the US. They cooled their statements on that now that we see the effects on inflation and how terrible easy money was. Imagine if there was doubt in the market and a run of any of these banks. It would be 2008 all over again and probably worse.

I understand the statement by BoA to be out of fear. If CEXes can prove through math and not any weak flimsy word-of-mouth promises that all funds are backed and there is no debt through higher amounts of liability what would stop people from using crypto, besides only being able to understand it. All the financial freedom with limited responsibility as they could mostly trust CEXes to handle all the security and ease-of-use features.

All that would be left is to fix Defi hacks. But trustless but trustworthy(through math) Cefi would more than fill in until then and it sounds like a nightmare for banks. Crypto is growing and banks are feeling the pinch.

https://www.coindesk.com/tech/2022/11/18/bank-of-america-says-crypto-exchanges-proof-of-reserves-have-too-many-shortcomings/

EDIT: I am speaking for American banks. Some have argued out that banks don't print money like tokens. First of all, I never equated printed crypto tokens to printed bank fiat money. I was not comparing insurance. I only spoke about the topic of reserves. And banks do effectively 'print' money at the behest of the Central Bank(Federal Reserve) based on the reserve ratio which is currently 0. Further, .you cannot accept that Central Banks print money without accepting that commercial banks also again print money because the money that Central Banks print only reaches into the private sector economy through commercial banks based on choosing. In essence, commercial banks are part of the whole Central Bank(Federal Reserve) system of printing money. Printed money only gets into individual and business' hands though Central Banks the process of which banks almost completely control. This also partially depends on if you view 'printed money' as money created from a fractional reserve system which I'd very such agree that money coming from basically thin air is printed money.