That is ideal. Economic growth is not an unqualified net positive for society, and lending is the root cause of most of its ills. With borrowing as it is practised by hegemons today, there are only two endings: either they must close the loop, using the dirty money to architect a revenue-extracting monster that milks non-borrowed money to pay off the debts, or the system collapses under its own weight, like Bernie Madoff's Ponzi scheme in the 2008 financial crisis. Debt creates its own incentives to abuse the commons and impoverish the public.
Of course, not being content with abusing the commons, there are also implications for abuse of single wealthy lenders, too. It would also effectively outlaw short-selling, since that consists of borrowing assets—the items being traded—then destroying the price, and pocketing the difference. If you think about it, this isn't even adding value to the economy; it's just skimming value off the inventory of whomever you're borrowing from.
If anyone tried this with a physical asset the lender would be apoplectic: "You borrowed 50 cars from me, sold them, destroyed the market for that model, and bought them back at a pittance. Now my inventory of 1,000 cars of the same model is worth a thousand pittances! Why would I ever do business with you ever again?!"—it only works as a system if the lender assumes that the assets will recover value over time, but the degenerate gambler doing the borrowing is incentivised to outright ruin the assets they're borrowing beyond any hope of recovery. In a sense they're even less ethical than corporate raiders, since both the company who issued the stock and the lender are being abused.
