If there was an alternative currency (paper money) unregulated by the Government would you use it?
Is there something like that? It would be fake if there is unregulated paper money circulating in the community. Such question is not a deal to begin with and cannot be true due to the government not allowing such currency.
Yes there is, for example Bristol, England - they do have their own currency which is accepted in many shops. Another city, Hull, was going to run their own cryptocurrency but I don't know how successful they are. Some cities popular with tourists also run their own currencies e.g. Polish Łeba.
Interesting article:
Local UK currencies