[ml/nj]

Government’s got nothing to do with it. People decide what money they’ll take, and it’s based on their ability to give it to others.

Why do you think the concept of Legal Tender exists?

ML/NJ

[discostu]

All that means is it’s the money the government will take to pay taxes. Outside of that it doesn’t mean a thing. Really, read up:
https://coins.nd.edu/ColCoin/ColCoinIntros/CtfBrit.intro.html

When the legal tender money supply has problems circulating counterfeit will get the job done just fine.

[fhayek]

In the end, money is what people say it is. If no one wants your money, it is effectively worthless, regardless of what the government says. If the government is willing to accept worthless money for taxes, then that is exactly what it will get.

The whole "accepting money for taxes" is really the only power they have to give money its value. The government says pay your taxes in dollars. You, then, conduct your business using dollars in order to comply. But, if the money dramatically loses it value, people will conduct their business with other forms of money, and will convert it to dollars at the last minute, to pay taxes.