Comment by jfengel
6 hours ago
Fiat money has a difference: an army. It is issued by a government which has the legitimate right to demand taxes, paid in their currency, and deprive you of life and liberty if you don't.
Ultimately the populace could repudiate the whole social contract, which is also just consensus, but that's a far bigger deal than mere money.
Well to be pedantic, in the USA at least the value of the dollar is largely maintained by civilian law enforcement rather than the military. If you incur a tax liability and fail to pay your debt in US dollars then eventually the IRS will seize your assets and auction them off to settle the debt. Due to the Posse Comitatus Act, the Army doesn't get involved.