The government may be the sole issuer of currency but fractional reserve banking allows the velocity of that money to be increased, effectively increasing the money supply without the issuance of more currency.

Fractional reserve isn't really a thing any longer. Banks no longer lend from deposits. They (Fed) simply create reserves to allow interbank transfers of loaned funds, but those reserves carry an interest charge for the overnight fund rate, so banks retire them as the borrower pays down the principle of the note. When a loan is paid off the reserves created disappear and the money supply is reduced accordingly. You'll find that most bank functions mimic that of our national government's mechanisms.

"People taking on more bank debt" may seem like an illusion to some (hardly an illusion when the payment is due) but it's one of the foundations of capital formation and wealth creation.

Capital formation and wealth creation can only happen when bank debt can be net retired without accumulating more debt, which requires high power money that only can be created by Congress. Attempting to maintain a functional economy based on the ponzi scheme of bank debt only chews up resources to keep the game capitalized and accumulates wealth at the top of the food chain.