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> nation's currency is arguably the primary source of it's sovereignty Not really. Many countries do not mint their own currency, and other mint currency but p
by steve19 11y ago
> nation's currency is arguably the primary source of it's sovereignty
Not really. Many countries do not mint their own currency, and other mint currency but peg its value to another.
https://en.wikipedia.org/wiki/Currency_substitution https://en.wikipedia.org/wiki/Currency_substitution
What constitutes sovereignty is complex. It mostly comes down either legal recognition of sovereignty (de jure) or physical/guns on the ground control (de facto).
https://en.wikipedia.org/wiki/Sovereignty https://en.wikipedia.org/wiki/Sovereignty
- stcredzero 11y agoIt mostly comes down either legal recognition of sovereignty (de jure) or physical/guns on the ground control (de facto). It usually comes down to the latter. De jure sovereignty without physical control gets overrun by de facto. I wonder if either Japan or China would grant de jure sovereignty to a seasteading platform anchored to that sinking island both of them want so badly? Then the new nation could grant their supporter some economic rights in exchange for military support.
- AndrewKemendo 11y agoThere is a massive difference between a currency peg and citizens using another nation's currency for transactions. In the former case the state still controls the currency and it's distribution, the latter they are completely divorced. and yes sovereignty is of course complex, but if you can't control how your economy runs then you can't control your nation. Forcefully seizing notes or issuing new currencies is hallmark of a power transfer.
- the_mitsuhiko 11y agoA peg can be changed with a moment's notice. You can't do that with a currency you do not issue. This is the dofference between what happened in Switzerland and Greece last year.