Private currencies are ultra cool.That will help. But not if you leave the money powers intact.
If anybody can create it's own currency, why would you use any other currency if every neighbor can print till infinity? In such world only currencies surviving will be like bitcoin or based on gold. They aren't printable.
In current system legal tender laws mean you must accept devaluation. This forcing won't be possible in private currency system.
In current political system more states implies more currencies and central banks. This limits damage created by each central bank and limits printing because people can run to other currencies.