There were examples close to the decentralized banking model in history, for example, the Free Banking model. The free banking model was implemented with different alternatives. In the era of laissez faire laissez passe, free banking reached wider diffusion.In simple terms: Those holding bonds and similar deposit assets in the bank were authorized to issue money.
Hayek came up with a different method than this. The modern theory of the export and circulation of money based on the alternative free-market mechanism, where the Central Banks do not take place as an authority, was put forward by the economist Friedrich Hayek in 1976. The idea, advocated by Hayek in The Denationalization of Money, is that money is exported so that it can be used as a means of value by organizations using various factors.
Experiments with programmable and encrypted money by cryptologists did not occur to economists. Experiments with programmable and encrypted money by cryptologists did not occur to economists. A distributed and unreliable asset custody service first came into our lives with bitcoin, thanks to Satoshi Nakamoto.
If you ask what is the structure that entered our lives before crypto money in the financial system, we can say central banking. It is much younger than other Financial systems. When Central Banks issue blockchain-based money, can the free banking model, Hayek’s proposal, and the consensus structure of Nakamoto be applied in the same model?
History always overwrites the previous one. Like Free Banking and Hayek’s, cryptocurrencies are trying to re-test an alternative central banking model.
