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Centralization of money creation at the national level is not ideal. There are 3142 counties in the United States. If during the process of national credit allocation we forget to send money somewhere, we could accidentally destroy a small town or create a slum.

An alternate solution would be to establish state-owned public mortgage banks, which collect interest payments on publicly held real estate loans over land areas roughly the size of a federal congressional district, that spend the interest payment revenue back into circulation on state and local infrastructure.

Public mortgage banks could also be strictly limited to issuing real estate equity loans and mortgages at 100-200% of the replacement cost of improvements whenever that is lower than the sales price.

When banks lend against the present value of future rents the property owner is pledging the surplus labor of future generations of residents as collateral and encouraged to lobby for artificial land scarcity so that rents keep going up. Capping loans in reference to the replacement cost of existing capital would help reign in this dangerous incentive while still creating liquidity for asset holders and publicly capturing interest payments that would otherwise leak out to global financial system to generate additional revenue for local infrastructure reinvestment.

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I'd argue that centralization of money creation at any level is not ideal and that the monetary landscape used to be more robust in the US when many different entities could create their own notes (even if some on occasion went out of business).

And that another alternative solution would be that anyone/any entity who is willing to put a portion of currency supply risk at t0 in order to potentially have a larger share of money supply t1 should be possible (in addition to other lending activities).