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The government forces its subjects to pay taxes in that same currency and enforces this policy through courts, police, and the military. That is where state run
by orangepurple 4y ago
The government forces its subjects to pay taxes in that same currency and enforces this policy through courts, police, and the military. That is where state run currencies get their value. You need $CURRENCY because it is required to pay your taxes. The only way it ever stops is overthrow.
- nirimda 4y agoThat isn't true. There's many cases where e.g. through corruption and distrust, the state's capacity to collect taxes has been seriously weakened and the currency has gone into freefall so the country begins to operate - even despite threats of harsh penalty - in alternative currencies. States regularly remain in existence (i.e. are not overthrown) even after their currencies have stopped being used for everyday transactions and as regular stores of value. It is one of many examples of governments playing catchup with the economy.