Maybe I am covering too many issues in my vision here. Perhaps better to consider them as separate areas to be resolved individually.

So let's just think about the Bitcoin environment for now and leave aside the other currencies and forget about links to the rest of the banking system at this stage.

Say I live and work Bitcoin. I only use Bitcoin nothing else, and all the people I come into contact with also do the same. Not entirely realistic, but just for the purposes of this description of the concept.

So how do I make regular payments from my Bitcoin account? Eg standing debit orders. How do I pay my monthly rent? How do I receive my salary? If my employer says to me, what is your Bitcoin bank account number, what do I tell him?

What is my Bitcoin account? At the moment there is nothing.

Only a series of transaction Id numbers ie the Bitcoin public addresses. Thats ok as a transaction system, but its not a single account number system for the user. I can't easily do any of the above with that system.  It's like a kind of back-end for the bank, its the transaction processing department, the ledger department, but we don't yet have the front-end for the customers. All we have is wallets, not bank accounts.

We need a further level of abstraction in order to do this. At the moment we don't have it.

My point is we right now we have a peer to peer transaction system. But we don't have a peer to peer user account system.

It could be implemented as a system on top of Bitcoin. People would have the option to use it or to stay with the lower level current system of series of transaction ids ie Bitcoin addresses as a present, as they wished.

Maybe its a bit like introducing Windows on top of the DOS command line. People can still work with the commands if they wanted, but the majority much prefer a graphical interface. Or like a kind of DNS system for Bitcoin, allowing for domain names in place of IP addresses.  At the moment the die hards are all saying, why do we need a system of "domain names" on top of it when we already have the IP addresses.