The solution to all of this is terrifically simple: criminalize the most notorious aspect of traditional banking (the exercising of control over other people's money), and let companies issue their own money in the form of fungible, negotiable bearer bonds redeemable with the issuing company, either for products or services in the companies' areas of business, or for a monetary metal.
For comparison, consider this summary from the Bank of England:
from <http://www.bankofengland.co.uk/bhistory.htm>:
A Brief History of Banknotes
The first recorded use of paper money was in the 7th century in China. However, the practice did not become widespread in Europe for nearly a thousand years.
In 1694 the Bank of England was established and almost immediately started to issue notes in return for deposits. The crucial feature that made Bank of England notes a means of exchange was the promise to pay the bearer the sum of the note on demand. This meant that the note could be redeemed at the Bank for gold or coinage by anyone presenting it for payment.
These notes were handwritten on Bank paper and signed by one of the Bank's cashiers. They were made out for the precise sum deposited in pounds, shillings and pence.
During the 18th century there was a gradual move toward fixed denomination notes which by 1745 were being part printed in denominations ranging from £20 to £1,000. In the latter half of the century gold shortages caused by war and revolution led to the production of £10, £5, £2 and £1 notes.
The first fully printed notes appeared in 1855 relieving the cashiers of the task of filling in the name of the payee and signing each note individually. The phrasing "I promise to pay the bearer on demand the sum of ..." was introduced at this time and remains to this day.
In 1833 the Bank's notes were made legal tender for all sums above £5 in England and Wales.
from <http://www.bankofengland.co.uk/tender.htm>:
Legal Tender and the Promise to Pay
Legal Tender
The concept of legal tender is often misunderstood. Contrary to popular opinion, legal tender is not a means of payment that must be accepted by the parties to a transaction, but rather a legally defined means of payment that should not be refused by a creditor in satisfaction of a debt.
The current series of Bank of England notes are legal tender in England and Wales, although not in Scotland or Northern Ireland, where the only currency carrying legal tender status for unlimited amounts is the pound coin.
Promise to pay
The "...promise to pay the bearer the sum of ..." on Bank of England notes has nothing to do with legal tender status. The promise to pay stands good for all time and means that the Bank will pay out the face value of any genuine Bank of England note no matter how old.
The promise to pay also holds good for damaged notes, as long as enough of the note survives to prove that it was genuine and no previous claim for it has been received. The Bank's mutilated notes department receives some 23,000 claims a year for anything from fire damage to notes eaten by all manner of household pets.
END
From the site: <http://www.healthkeepersalliance.org/Home/html/special.guest.archive/eustace.mullins.html>: