Centralized money creation depends on an authority to do so.

Technically, you go the bank, ask for a loan. By putting your signature on a piece of paper, the I owe you, creates the impetus to provide you with FRN, Federal Reserve Notes. However, these were created out of thin air. The Bank does not give you anything of value that you did not create before hand.

The government does something equal. They need money. They write a IOU, and the FED created the FRN's to be used in all kinds of transactions, including Ukraine moneylaundering. This of course is called: deficit spending and increasing the national debt, now running at 35 Trillion, up from 22 4 years ago.

enter: electronic currency

So far, we talked about physical FRN's, or the banknotes you are familiar with. However, since a 100 years it was possible to sent currency electronically. How? By Telegraph. All that is needed are two trusted entities exchanging messages. It is called: corresponding banks.

700 years before that, people would deposit their gold at a bank, receive a slip of paper stating such a deposit, of course, well signed and sealed, and they could travel to Jerusalem, or Constantinople, or Rome, and collect their gold there.

Since the 70-ties we use SWIFT for international payments. It is nothing more than a system of messages between one bank and another. It contains the name of the sending bank and the receiving bank, the name and bank-account number

Blockchain

Blockchain is a technology that, like a chain, hooks one block of messages to another such that there is assurance of the correctness of the messages and the history of them. This means that every transaction ever made, is entered into a block of messages, comparable to a page in a order-book, cash-book, bank-book,etc (analogue book-keeping), and that block never dies, never erases, and always exists. This means, every so often (10minutes for example) a new block (page) is added to the chain. This means that the totality of the book grows. This is called blockchian growth. (see size bitcoin blockchain.raw)

The contents of the message of course, is a number of coins. Coins are fungible, in the sense that you can partition a coin into smaller parts.The coins are created by solving a mathematical puzzle, at least in the case of BTC/Monero and some others. The transactions, broadcasted onto the chain by the wallets in operation, are put into a block by solving the same kind of puzzle. (check mempool.space).

Of course, the sender address and the recipient address are also mentioned.

Some blockchains are slow, like Bitcoin, sometimes needing 10 minutes to confirm a transaction, othertimes it may take hours. Some chains, like BCH or XRP, can work with thousands of transactions a second against a very low fee.

For BTC, the transaction fee, payable by the one ordering a transaction, may be about a dollar and a half. BCH is less than a dollar cent per transaction.

From this you can glean that the choice for the use of a currency to pay goods and services favors the chain that is cheap and fast.

There are chains that allow for the creation of smart contracts. For instance, documentary credit involving 3 or more parties. Or simply trades that need to be executed with the passing of time. Other chains, like Cardano, allow for the creation of so called NFT's, non fungible tokens. A token is a message surrounding a real life asset, like a house, a painting, a car, in short, the ownership of goods, that can be passed on to someone else, only by passing on the message from one wallet to the next.

It is easy to see how notaries have gotten themselves in a position of competition.

At any rate, The creation of money, by solving puzzles, is not done by banks, but by miners. Often times these miners operate in pools. These pools consist of individuals mining with their own computers.

Certain chains, like Monero, pursues a policy in which no single entity can corner the mining market. With BTC, there is a battle going on. Certain pools have a large swathe of the mining operation. For Crypto coins to operate correctly, it is important that the mining operation remains decentralized.

In effect: Blockchain allows for the assurance of the correctness of transactions, and the crypto coin allows for the transaction to be made. So, the middle man is cut out of the equation.

There is no bank anymore that can step in and say: this transaction we will block because we do not like your face, your political views, or requires your submission to governmental controls.

Where .gov controls are situated are at the fringes of the crypto sphere, when you want to move FIAT and exchange it for Crypto Coins. Banks like to be the gatekeepers. What they still have not comprehended, is that their time of existence has ended. You do not need them. The crypto sphere has everything: loans, mortgages, trade financing, saving, investment, currency trade, contracting, the works.

What we see now is that the FIAT world thinking is working very hard to curb new world crypto thinking. And the old world is losing.

The other way around .... well .... it all depends on how you approach off shoring and the use of the legal persons ( entities). But that is where taxation comes in. Again, as soon as you try to liquidate crypto coins, .gov views that as somehow they are entitled to a piece of the action.

IF anything: .gov has shows to be utterly non-deserving of that. Not transacting in national currencies blocks jurisdiction. Of course there are other means to acquire jurisdiction, but that is another discussion.