> Adopting another country's seems completely illogical IMO; I mean, do banks in such countries answer to the Fed. Reserve ? Do you know how this works? When y

> Adopting another country's seems completely illogical IMO; I mean, do banks in such countries answer to the Fed. Reserve ? Do you know how this works? When you adopt another country's currency, that just means that their money is legal tender in your country. It raises confidence (if you've selected the right currency) that your country's officials in charge of the economy won't do silly things like print more money or devalue your currency. It basically takes away a lot of potential economic tools you have to fix your economy in exchange for instant credibility in that most other foreign businesses will do business with you.