Monetary Sovereignty: A Tale of Two Monies

Monetary Sovereignty: Conflict Between State and Citizens

The excerpts examine the tension between individual and state sovereignty in Italy, focusing on the creation of scriptural money by unauthorized private banks. The question is raised as to whether the state, by delegating the power to create money to banks without clear countermeasures, is failing in its duty to protect the public interest. The legal, economic, and political analysis reveals a double standard: authorized banks can create money and profit from it (seigniorage), while citizens who attempt the same are prosecuted. The paper argues for reforms for a more equitable and democratic monetary system, proposing solutions such as converting bank seigniorage into a tax or adopting a quantitative balancing system for transparent bank accounting.