If competition in currency is allowed

This is a topic which I've talked about before, but I would like to put it on record.

We are born into a world of fiat money, a world where governments or the central banks have complete monopoly over the nation's money. The IMF prohibits member nations from backing their currencies with gold. We are forced to use these paper money because governments declared it to be 'legal tender'. Court settlements, fines, and taxes can only be settled in these monopoly money. Taxes are slapped on other monetary alternatives such as gold or silver. These leave people with little choice but to use the monopoly money.

What if we can repeal this legal tender law? What if competition in currency is actually allowed?

In Singapore, banks like UOB, DBS, OCBC, Maybank, etc etc will start issuing their own notes. They may come up with something like "UOB Dollar", "Maybank Ringgit", or whatnot. To instil public confidence in their currencies, they may back it with something tangible, such as precious metals.

In light of the rampant fiat monetary inflation around the world today, I - after doing some due diligence - will be among the first to convert some of my money into these notes. I will then post on FB: "I've put my savings in UOB Dollar, and it's backed by gold. Have you?"

I imagine some people will start to do the same. Pretty soon, people will flock into these bank notes. If this happens across the world, we will see many national currencies self-destruct, because they are backed by nothing but its government's promise to maintain its value, and because they are printing them at record rates.