Banks, central banks, reserve banks – and Bitcoin.
They all exist because human beings – individuals like you and me – cannot be trusted.
(And because we are greedy, envious and have no self control or patience.)
Money is not so much the root of all evil, as evil is the root of all money.
(There is a very good economics lecture / paper by the same name that discusses the technical side of the mean, greedy, jealous side of human nature very nicely for those of you who are interested: Evil Is The Root of All Money )
The point is that the banking system is not “evil” so much as it is a reflection of the “evils” of society itself.
Similarly, fractional reserve banking is a symptom of society’s greed and envy.
Citizen-voters are less victims of the central banking system than they are net beneficiaries of it, in the form of national-debt funded social security payments, unsecured mortgages and assorted unearned “citizen entitlements” – not to mention the perks of living in a growing (if monstrously inflated) economy.
This is worth bearing in mind when debating people who believe crypto currencies and blockchains will “save the people from the fiat monetary system”.
That’s like saying decentralised economies will save people from themselves.
You can’t save people who don’t want to be saved.
Most religions know this.
It’s time the “community church of crypto” came to the same realisation: You can’t free people from free money when people want free money.
Most people are happy to saddle future generations with debt if it means they get to enjoy free stuff today. Most people don’t mind being a slave to a system than gives them free schooling, free money and other free perks. Most people don’t mind because by the time the system fails, it will be someone else’s problem to clean up the mess.
And this is the fatal flaw in the decentralised dream: Most people are happy to sell their long-term freedom for short-term security.
This is why even in the “free world”, less than 4% of the American population voted for a smaller, less powerful government. Red or Blue, the people voted for more government, more centralisation, more debt (all that divides the two camps is how the newly printed “free money” and (deferred or redistributed) taxes should be spent). They voted for the fiat economy.
Good luck trying to free that lot from their fiat chains.
Their grandchildren can worry about the debt repayments.