A nation-state will ban or monopolize any competitive alternative to state-backed currency or debt (obligation transfers). Just look at current macroeconomic policy around the world, vast sums of obligations ("debt") being created.
Gerbil wheel economics (debt until infinity) doesn't take into account low-cost, low-labor 24/7 manufacturing, so don't invest too much logic in antiquated theories that require libor-rate'esqe techniques to make it believable.