It seems like a new banking system backed by something tangible again like how it was in the 1800's and prior would be a good move but would those of us in debt still be in debt to the banks? If not, how would our debts magically be absolved?
Example, say you owe money on your car and you have a ton of outstanding debt to a bank or credit lender. How exactly does implementing a new system of banking nullify this? Can't the bank still say "Since the USD is defunct, now you owe us the "New US Treasury Certificate" equivalent of that amount"?
I just can't quite put 2 and 2 together how the new currency would be debt free without older debts being absolved first.
The value of the old currency will be compared to the value of the new currency and a currency exchange will then be established. You owe what you owe but it could be dependent on who sets the new currency up. Example ratio could be 1:1 or 100:1. Take a look at what happened to paper currency in Venezuela between 2009-2019 as compared to US currency.