Government-issued money being &quot;debt based&quot; is a fiction used to make the accounting equations look pretty. It has been since the gold&#x2F;silver&#x2F;whatever standard fell into disuse.<p>Or are you talking about fractional-reserve banking? If so, there&#x27;s nothing that prevents implementing that on top of crypto-currencies and more than it can&#x27;t be implemented on top of physical currency.