Fractional reserve on lightning network

Quick question.

As all / most of lightning networks transactions happen offchain could this lead to a form of fractional reserve bitcoin? Where in businesses and credit facilities etc could issue bitcoin and it is only considered bitcoin once it is settled on the main chain? Creating a scenario where more bitcoin than actually exists is being sent accross payment channels that never settle on the main chain therefore diluting the amount of bitcoin in circulation.

Or does every single micro transaction need to be backed by real bitcoin, even off chain payment channels.

Any ELI5 style clarification would be appreciated.

Submitted October 08, 2016 at 08:09AM by slvbtc
via reddit http://bit.ly/2ebES9M