Currency that is not backed by anything is not a new concept; in fact history has been riddled with many cases of this concept. In all cases where a nation tries to have a medium of exchange not backed by anything; that medium of exchange becomes worthless in less than one hundred years. This will be the faith of the Dollar, the Euro, the Pound, or any other currency not backed by anything. The Dollar being a significant percentage of some nation’s reserve currency will likely cause a chain reaction when it does eventually collapse.

Also those who lose their wealth because of a currency collapse of a widely use fiat currency will tend to distrust lesser used fiat currencies. If the Dollar the Euro the Pound or any other fiat currency does not anchor its self to something that is time tested to hold wealth, they will all eventually become worthless. The laws of economics doesn’t change, what was tried in the past and failed will fail again in the future.

Gold being something that was time tested to hold wealth can be used as a temporary way to shore up a failing system. The ultimate goal should be to decentralize the monetary and banking systems. Anyone should be able to issue their own currency once it’s back by their goods and services and valued in silver or gold. Also every one should be able to refuse any currency that they haven’t issued themselves. Having governments issue gold backed currencies can solve some of the problems some nations face today, but it ignores one of the biggest ones; having the power of the issuance of currency in the hands of a selected few.