There is no reason it's illegal to make and circulate your own currency... my town even has it's own local currency.
To quote the section to which I think you are referring (Section 31 U.S.C. 5103):
"United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
Also Article 1, Section 8 of the Constitution:
"The Congress shall have Power...To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"
Notice it doesn't say exclusive right.
The 'legal currency' just means that if you sell/loan someone something, and they offer to pay/repay in dollars, you either accept them or give up your claim to that debt. Also, the government will only accept dollars for taxes/fees. So you could legally refuse dollars if you wanted to, but if you did so, the other person could just say "I tried to pay but he wouldn't let me" and walk away. But if the other person wants to pay you in some other way... with Blah Bucks... and you accept them, nothing illegal happened. It would just be considered bartering.
I'm not sure I'd want a currency backed by my local bank. At least I know the US government and by extension the Federal Reserve can't go bankrupt, rendering my money worthless (although it's true they could hyperinflate, by choice). Imagine all the people that would have had Bear Stearns dollars and what a catastrophe that would have been.
To quote the section to which I think you are referring (Section 31 U.S.C. 5103):
"United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."
Also Article 1, Section 8 of the Constitution:
"The Congress shall have Power...To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures"
Notice it doesn't say exclusive right.
The 'legal currency' just means that if you sell/loan someone something, and they offer to pay/repay in dollars, you either accept them or give up your claim to that debt. Also, the government will only accept dollars for taxes/fees. So you could legally refuse dollars if you wanted to, but if you did so, the other person could just say "I tried to pay but he wouldn't let me" and walk away. But if the other person wants to pay you in some other way... with Blah Bucks... and you accept them, nothing illegal happened. It would just be considered bartering.
I'm not sure I'd want a currency backed by my local bank. At least I know the US government and by extension the Federal Reserve can't go bankrupt, rendering my money worthless (although it's true they could hyperinflate, by choice). Imagine all the people that would have had Bear Stearns dollars and what a catastrophe that would have been.