In Chapter 5, the authors describe the historical evolution of the market-based economy in the US.They note that the Federal Reserve system for central banking was not established until 1913. During the 19th century, many individual banks would issue their own paper currency (bank notes) that were exchangeable for gold or silver. The paper notes were more convenient to use than metal coins, so they were widely circulated in the economy. At the peak, more than 7,000 different institutions issued bank notes.The key disadvantage of this system was the potential for financial fraud and counterfeit notes. Accordingly, some people would not accept notes issued by unfamiliar banks, which hampered the pace of economic activity.

The Federal Reserve recently indicated they are not ready to issue digital currency yet, but they may do so in the future. Alternatively, there are many cryptocurrencies available at the present time -- while some are used mainly as speculative assets, others are designed as a store of value for transactions (e.g., stablecoins). Would you consider using a cryptocurrency to transfer funds to other people or businesses? Would you accept payment in the form of an unfamiliar cryptocurrency? Could the cryptocurrencies have the same problems that hampered the paper money system used in the 1800's?