Chaos on an unimagineable scale would be the result of your pie-in-the-sky scheme. No society has ever adopted it and none ever will because the economic inefficiencies would be overwhelming. Government control of the money supply will never be changed nor should it be. There is no good reason to do so. Not one. Only by misreading and misunderstanding of monetary history amplified by ideology could one come to such a conclusion.
I don't expect any rational reason to do so from those who do not correctly understand the history of the Fed or how it works or the role of government in human society. Believing that governments arise from reasons other than mutual concerns and demands is just immaturity and foolishness. Big governments arise because the people demand more things from them. Not elites or "socialists" but ordinary voters.
They maybe wrong (the democRATs never seem to be hurt by their colossal blunders) or deluded but they control the levers of power.
Utopian schemes are the last refuge of those unable to look reality in the face and non-governmental money is as utopian as you can get. Your personal assets would plunge in value along with everyone else's should your scheme be implemented.
Private money would be like the scrip of company stores mentioned to me above. It is subject to massive abuse and fraud. Just ask Tennessee Ernie he'll tell you about 16 tons and owing his soul to the company store.
Funny but I don't see the contemporary scrip being highly sought after- coupons. Though gift certificates (another private money) are popular when there is a time limit on them they have an element of fraud within. Stamps were a private money that was popular when I was a kid. My first baseball glove was purchased with the stamps my mom got at Safeway. Of course, these were abusive too since many were never redeemed.
Big governments arise because the people demand more things from them. Not elites or "socialists" but ordinary voters. Agreed. This is why Constitutional Republics are superior to the de facto Socialist Democracy we now live in and you so vigorously defend.
The people demand the stock market not crash, and Big Government is there to prop it up with easy money.
People demand mortgages as a public entitlement and Big Government is there to remove the burden of prudent lending.
People find raising children to be inconvenient and Big Govermnent happily creates the socialist indoctrination camps that now masquerade as schools.
A state which dwarfs its men, in order that they may be more docile instruments in its hands, even for beneficial purposes, will find that with small men, no great thing can really be accomplished. - JSM