Written by Antony Abell, Co-Founder of TPX™ Property Exchanges in Partnership with Cheyenne Mint (USA). The concept of denationalized banking, where banks issue their own currency without central bank regulation, is gaining traction. Historically, prevalent in the US pre the Civil War, it is now being revisited due to concerns over fiat currency inflation and central bank control. This model emphasizes real asset ownership over currency entitlement, potentially democratizing wealth and reshaping financial services. Digital wallets facilitate the secure storage and exchange of digital assets, so challenging traditional banking paradigms. However, questions remain about the feasibility of transitioning to asset-backed currencies and the implications for monetary policy.
I'm not sure I buy this decoupling banks and currency argument at all - one of the reasons the bank-issued notes fell out of circulation was because it was a pain to use in normal time and a nightmare for the holder during banking crises (unless you'd be willing to tell me that a dollar from JPMorgan is the same as Silicon Valley Bank in 2023). You've essentially killed the fungibility of currency and introduced private credit risk just to cut the central bank out of the equation, ignoring the facts that the local commercial banks are likely going to be forced by the same local market factors (e.g. government overreach, weak/underdeveloped local currency, balance of payments issue)
I'm extremely bullish on the tokenization of real world assets but it appears evident to me that any type of Deposit Tokens being traded outside commercial bank walls is a long shot IMO both from a regulatory and justifiable economic perspective. Better use of tokenized real world assets would be tokenized deposits/securities/assets within banks/private institutions and a wCBDC for wholesale settlement
I'm not sure I buy this decoupling banks and currency argument at all - one of the reasons the bank-issued notes fell out of circulation was because it was a pain to use in normal time and a nightmare for the holder during banking crises (unless you'd be willing to tell me that a dollar from JPMorgan is the same as Silicon Valley Bank in 2023). You've essentially killed the fungibility of currency and introduced private credit risk just to cut the central bank out of the equation, ignoring the facts that the local commercial banks are likely going to be forced by the same local market factors (e.g. government overreach, weak/underdeveloped local currency, balance of payments issue)
I'm extremely bullish on the tokenization of real world assets but it appears evident to me that any type of Deposit Tokens being traded outside commercial bank walls is a long shot IMO both from a regulatory and justifiable economic perspective. Better use of tokenized real world assets would be tokenized deposits/securities/assets within banks/private institutions and a wCBDC for wholesale settlement