A driving motivation for the Bank Charter Act of 1844 was to institutionalize/centralize seignorage and impose limits on how much influence commercial banks have in terms of money creation (along m4 lines). Background here:https://wcfia.harvard.edu/files/wcfia/files/471_01-05broz-grossman.pdf
In today's digital world, issuing actual notes is somewhat trivial. In effect, credit/deposit accounts can be created largely at the discretion of commercial banks. At first glance it would seem that the 90%+ money in the form of commercial bank accounts is a modern manifestation of a nearly-identical issue identified by Sir Robert Peel and supporters centuries earlier.
I would like to see where conventional economic thinking stands on this issue.
Has legislation simply not caught up with digital disruption in money creation or is this more about lack of political will (regulatory capture)? Or perhaps there is an entirely separate, more benign explanation as to the disconnect of policy and industry over the past 200 years?