[anticensor]

The same can be said for central bank money.

Transaction clearance - Artificially kept centralised to keep states control supply.

Privacy - Every bank transaction requires real names.

Artificial scarcity - If everyone tried to withdraw the money from their banking accounts at or around the same time, all the banknotes in circulation would be unable to cover all the demand.

[Retric]

Transaction clearance between customers at the same bank don’t involve any central authority. In fact banks are reporting their net transactions between each other aka if A has 100,000 transactions for 100$ each with B that sum to zero net transfer they don’t need to report anything.

This is needed as otherwise banks could claim to have unlimited funds.

Bank notes provide privacy and are created on demand. Having 1:1 bank notes to M1 money supply would simply be wasteful.