The Unthinkable Split

The separation of church and state is considered foundational to free societies.

In practice, it means:

• The government doesn’t establish, promote, or favor any religion.

• Religious institutions don’t control governmental functions or policy.

• People are free to practice (or not practice) any religion without government interference.

These concepts seem self-evident in any Western democracy.

But for much of history, religion and political power were inherently fused or intertwined - even if not directly ruled by priests.

But there’s another, rather unholy, union of power that rules over our lives - one so ubiquitous and almost imperceptible, that like the pre-Enlightenment citizens, we don’t even think to question it.

Now, let’s take those previous statements outlined above and swap some words out.

The separation of money and state is a principle that government and our monetary network should operate independently of each other. This is to prevent the abuse of power.

In practice, it should mean:

• The government doesn’t establish, promote, or favor any form of money.

• Money doesn’t influence or control governmental functions or policies.

• People are free to use (or not use) any money they choose, without government interference.

To many, the above statements resemble heresy. Much as the ones regarding the separation of church and state must have sounded to your average person hundreds of years ago.

Common arguments for the control of money by the state normally go something like this:

“Someone has to be in charge or it will be chaos. Government backing means everyone trusts and accepts the money.”

“When the economy crashes, we need someone who can step in and help people, not just sit back and let everyone suffer.”

“Money affects everyone - it should be controlled by people who answer to the public, not some unaccountable entity.”

“We need to be able to track money flows to catch criminals and terrorists. Complete anonymity would be dangerous.”

“This is how money has always worked. Every country does it this way. Why risk changing something that works?”

In this article I cover:

• Why the separation of money and state is as foundational as the separation of church and state

• How governments enforce their monetary monopoly

• The two forms of violence enabled by fiat money

• Why you already have the tool to separate money from state

• Practical steps to start today

• How individual sovereignty compounds across the network to weaken state monetary control - one sat at a time

The state monopoly on money

Let’s examine the three concepts outlined previously with regard to the separation of money and state.

1. The government doesn’t establish, promote, or favor any form of money.

What actually happens: Governments establish, issue, promote, and force the use of their respective currencies.

I say “force” because it’s the only way you can pay the government the money that you owe in taxes. It is the only form of money that the government distributes through its social security systems.

Taxes create demand for government currency. Try paying your property tax in Bitcoin, or a parking fine in gold. Try asking the government to distribute your pension in any currency other than theirs.

2. Money doesn’t influence or control governmental functions or policies.

What actually happens: Fiat money is at the heart of government functions and policy.

Governments derive their power from direct access to money that can be borrowed, printed, and inflated away. This creates multiple channels of control:

Direct Financial Influence: Governments borrow, and central banks create money to buy that debt. This finances spending without the political cost of taxation.

Institutional Capture: Banks and financial institutions depend on central bank money creation, forcing alignment with government interests.

Structural Power: Money creation determines who gains and loses - asset owners benefit from inflation while savers and wage earners lose purchasing power.

Systemic Outcomes: Unlimited money printing removes budget constraints, enabling endless government expansion and rewarding proximity to money creation.

Without fiat money, governments would face hard budget constraints and visible costs. Fiat removes this limitation, making power less visible but more extensive.

3. People are free to use (or not use) any money they choose, without government interference.

We are not ‘free’ to use any money we choose.

While laws explicitly prohibiting the use of alternative money may not exist, governments enforce their fiat currency use through law, taxation, and regulatory pressure, so they hold an effective monopoly:

Capital Gains Taxation: In many jurisdictions, alternative currencies (Bitcoin, gold) are taxed on capital gains. Every transaction requires fiat-denominated reporting, which makes daily use impractical.

Legal Tender Laws: Taxes, debts, and legal obligations must be settled in government currency by law.

Employer/Business Restrictions: Salaries and payroll must comply with fiat-denominated regulations.

Banking System Gatekeeping: Mortgages, loans, and credit require fiat participation - exclusion means no access to essential finance.

Limited Merchant Acceptance: Regulatory and tax burdens prevent many businesses from accepting alternative money.

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