Right, but it doesn't really help me as someone holding the currency. I can have X dollars in my bank account, government can then declare these dollars are wor

Right, but it doesn't really help me as someone holding the currency. I can have X dollars in my bank account, government can then declare these dollars are worthless or you have to change it to this new currency at some rate that is set by the state. Neither of these things are good for me and I would hardly call that the government "backing" the currency that I hold.