Can money be anything but state-backed?

Can money be anything but state-backed? This question has sparked debates among economists for decades. While some argue that money must remain the exclusive domain of the state - as left-wing thinkers like Varoufakis and many French economists maintain - others, drawing on ideas from the Austrian school and voices like George Selgin and Lawrence D. White, believe that private money can be a powerful force for good.

Philosophically, this debate touches on the idea that state dominance is almost in its DNA. Acemoglu and Robinson’s “narrow corridor” theory tells us that without strong societal mobilization, the natural evolution leans toward a “despotic leviathan.” In other words, only when society stands together can it push back against state encroachment on individual liberties. In this light, private money isn’t just an alternative - it’s a tool that can empower communities and strengthen societal freedom.

History offers plenty of evidence that privately issued money can work. The so-called “free” banks in the antebellum U.S., despite some regulatory missteps, along with systems in Scotland and Canada, showed that privately supplied bank money could be stable and beneficial when regulations were fair. It’s ironic that even among some of the toughest economists, the idea of state-controlled money still prevails, despite clear examples of abuse in that system.

At OffChain Luxembourg, we see an opportunity to challenge this old paradigm. We’re creating OCLT - an “open money” token designed for the Grande Region. OCLT isn’t just another digital asset; it’s a tool to enable people to create and exchange value freely, without being confined to state-backed systems. The goal is not to replace the EUR but to provide people with an alternative finely tuned for modern times. Fully MiCA compliant and based on the feeless Hive blockchain, OCLT is our way of empowering local communities to take control of their economic future.

Imagine a future where money isn’t dictated by state interests but is a reflection of collective strength and innovation. That’s the vision behind OCLT.

Join us in this movement toward open money and help shape a freer, more resilient economic landscape for our region.