Since I can't exchange a dollar for a piece of faith and credit, it's not really backed in the traditional sense of being a backed asset. Neither is it backed

Since I can't exchange a dollar for a piece of faith and credit, it's not really backed in the traditional sense of being a backed asset. Neither is it backed by the US military or the ability to pay taxes. The fact that the dollar is in widespread use in a country that has a track record of stability, a well-managed economy, trusted institutions and a strong military all mean that if you want to put your faith into an arbitrary and made up asset, the US dollar is an excellent choice; but its value is a collective illusion nontheless.