I&#x27;m aware of Hayek&#x27;s 1974 work on denationalization of currency.<p>Actually Hayek himself was somewhat confused on the subject. He didn&#x27;t favor free banking. Lawrence H. White later wrote a paper in 1999 entitled &quot;Why Didn&#x27;t Hayek Favor Laissez Faire in Banking?&quot; that clears up some misconceptions.<p>Your definition of &quot;currency&quot; is too narrow, though. It includes much more than monetary certificates for bank deposits. See the history of local currencies, Silvio Gesell&#x27;s Freiwirtschaft, etc.<p>Even within a free banking system, there would be inherent limitations in that banks would have to adjust their reserves so as to make full use of their lending capacity and profit on interest, because of the clearinghouse mechanism acting as a reflux. You&#x27;re aware of the free banking theories of Selgin, White and Dowd, I presume.<p>Once you extend &quot;currency&quot; to being much more than bank money, though, I think your concerns become severely diminished.