This whole discussion reminds me of the Argentine peso. Pegged to the dollar, economy slumps, harder and harder to back with actual dollars, then government dec

This whole discussion reminds me of the Argentine peso. Pegged to the dollar, economy slumps, harder and harder to back with actual dollars, then government decides to float the currency. US did this moving off the Gold standard as well. I guess these backing commitments are useful for some stability? But it won't entirely eliminate risk, so instead of relying on the wild swings of the market you're now relying on a single institution's trustworthiness / solubility. Take the risk you're willing to accept and hedge the others? A market for all kinds I guess! Either way, this model feels like it's already been run at scale a few times.