Is it possible to completely privatize money supply?

Question

What do you think will be the most important fallout of implementing a policy to this effect? Rationalize your answer.

Answer 1

I've heard a bank account in the Bahamas is a good way to keep it private. Ha Ha

Answer 2

If you earnmoney thru work or investments they've got you.

Answer 3

The most important fallout would be that there would be competing currencies.  The type of money that you get paid in might not be the same one that your favorite store accepts.  That would cause a lot of inefficiencies, such as transaction costs if you wanted to switch to the currency your store accepts.  Plus, it would be difficult to implement monetary policy, because you'd have to get all the different money issuers to agree, and even then, it would be possible for new firms to enter the market.  And one firm could go off the deep end and print a whole bunch of money, and have disastrous effects on the economy.  A governmental decree could force the country to adapt one currency, but then, of course, it wouldn't be completely privatized anymore.