18 U.S. Code § 333 – Mutilation of national bank obligations Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.

So ownership of bank bills etc is retained by the State. But there is nothing preventing one from immediately converting fiat to a commodity money [silver/gold] and thereby negating the effect of non-legal ownership by oneself, converting possession to legal title.

However possession in law is almost as powerful as ownership of legal title. Possession is defined as the ability to control by oneself, and preventing the assertion of control by all others.

Taxation would be the exception to possession being complete. The State through the coercive power wielded, can demand fiat money to be yielded up, thus effectively retaining legal title.

As previously stated, the issue is not legal ownership per se, it is the ability [through control of the money supply, which is provided through ownership] to create fiat at will, without any legal constraints. This is not ‘interest’, rather it is an additional hidden tax.

Which rather begs the question…how do you avoid the tax?

Through debt. By holding minimal fiat and the majority in real assets through debt. You use the depreciating fiat cash-flow to service the depreciating debt value. For most, this means a mortgage, as this provides the maximum leverage that the average person can acquire.

So what if you own your own home? Re-mortgage and invest the fiat into real productive assets, common stock being the primary investment vehicle. The cash-flow from dividends can off-set much of the repayment costs of the mortgage.