Maybe Not Possible For Governments To Get Off Fiat??
Thinking that with the USA dollar as the main reserve currency, That would make it very hard for other countries to get off the USA dollar and other fiat systems if they wanted to.
Such as moving to a money system that has more limited supply.
More less to drop a fiat system altogether for the international business aspect for that countries exports and imports.
There would be or could be in my opinion consequences such as a possible war break out with in some case the USA before.
Now with China taking over some countries. If those countries dropped the Yuan for business, there would be serious consequences coming down from that,
For example I am in Canada. If our country here stopped the USA dollar altogether for the trade transaction between USA and Canada there be serious consequences, even if my country Canada the government dropped the Canadian dollar or any fiat system in the country and moved to a new system, like BTC or some non fiat money system on the national system. There would be very serious sequences coming back from other governments in other countries.
Would this be a case of intimidation from more dominate countries that is preventing other governments from wanting to change the financial system?
Thoughts?
In reality most "fiat" currency is just stored electronically anyway, the amount of notes and coins in circulation in miniscule in comparison. It's effectively much more advanced in how it is stored and manage than most cryptocurrency can claim to be - crypto primarily has the advantage that it is decentralized. In the end governments do this because it has been found the best and most effective solution to peoples inherent need to trade. It's nothing to do with whether they can "get off it", it does the job it's meant to do very well and the free market dictates the rest. Just like we saw a flight from cash during Covid, when there were less people out shopping and a bit of a stigma on passing around objects which could host the virus, the need for physical cash and the transfer to more online finances increased.