Making private debt is easy. Turning private debt into ‘money' is hard. 

From Holmström (2015): agents must accept debt no-questions-asked (NQA) for that debt to be money—they must accept the debt at par without reservation or costly due diligence.

Contributor at Blockcrunch. Writing Ceteris Paribus - musings at the intersection of crypto, econ, and policy.

https://michaellwy.substack.com/

Private money is perpetual debt with embedded put options for redemptions at par on demand from the issuer. Sovereign money is just perpetual debt, with no options for redemptions (Used to be redeemable to gold, but not anymore).

All moneys land on a spectrum on its distance to NQA status. Sovereign money has the highest degree of NQA currently. Private moneys (incl. different types of stablecoin) rank further below on this scale.

How to reduce the distance to and achieve NQA status? For private money it could be a variety things including reputation, age of the protocol (lindy), transparency, scale and simplicity of mechanism.

All moneys are forms of collateral debt positions (CDP). The difference is in whose debt is it? 

So the ultimate question in 'money-making' is how can private money reach an NQA status on par with a system of authority that exercises coercive power and maintain monopoly of violence over a defined territory.