The problem here is that a government does not in fact have the ability to decide how much their currency is valued, they can only indirectly influence it. When they try to pretend like it’s just a “rule” they can set like “here is the mandated exchange rate, we’ll put you in jail if you make trades at any other price” is when things get real stupid.
India made a run at wealth hoarding by issuing a new currency. They declared it was worth something like 5 old currency and you had to personally turn in old money to get new money. You couldn’t just digital it.
I have no clue how well that did or didn’t work but they haven’t imploded yet. So there’s a lot more play in this money thing than the finance industry would like us to believe.
The problem here is that a government does not in fact have the ability to decide how much their currency is valued, they can only indirectly influence it. When they try to pretend like it’s just a “rule” they can set like “here is the mandated exchange rate, we’ll put you in jail if you make trades at any other price” is when things get real stupid.
India made a run at wealth hoarding by issuing a new currency. They declared it was worth something like 5 old currency and you had to personally turn in old money to get new money. You couldn’t just digital it.
I have no clue how well that did or didn’t work but they haven’t imploded yet. So there’s a lot more play in this money thing than the finance industry would like us to believe.
Then it’s not just backed by their declaration