The banks can default on the state

If the banks default on the state by refusing to accept fiat money then this would lead to a failure of the state. We can see from the manner in which the state has protected the banking institutions in history that it is the banks which offer more security than the state. We can say that the state fears the banks because there is no other reason for the state to perpetually give the banks socialist handouts. Because the state is weaker than the banks it relies on the banks accepting its currency. If the banks default on the state by refusing to accept fiat deposits and accepting only non-fiat currencies then this will lead to the end of the state as we know it. If the state relies on there being a fiat currency then if the banks reject this currency this will lead to anarchy and the end of the state.