How to create debt with crypto?

Hello all,

In our current economic system, we acquire debt by asking a bank to borrow us money to buy a house, for instance. The bank does not need to have this money, so he can lend massively to multiple people and from 100€ create 1000€ debt.

Now, imagine a world where everyone is using cryptocurrency, fiat is gone, and if you have 100 "coins" you can only lend 100 coins.

Questions:
1. who could be the entity that a citizen goes to when he needs a loan to buy an asset like a house/car? Who is eligible/has the crypto funds to provide this loan? Would banks disappear and people borrow money to each other?
2. in case banks still exist and are the ones that possess massive amounts of "Coins":
2.1 how could they have acquired these coins to begin with.
2.2 what could be the impact for the economy if banks have only a limited amount of funds to lend, and from 100 Coins can only borrow 100 Coins and not 1000 Coins. This means that way less people will have access to credit?

submitted by /u/Fear-LiTe
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