Euros and dollars are worth a lot because very powerful governments with big armies and police will force you to give them a lot of euros and dollars.

First of all, armies operate abroad (for good reason). And they don't collect taxes there.

Secondly, the entity that collects and spends taxes, is not the entity that prints the money (also for good reason). So in the end your government is just a user like any other user in the fiat system.

If most IT consultants demand to get paid in crypto, and government wants to hire IT consultants, then government will try to get their hands on crypto. Same deal but reversed.

There is no point in a government collecting taxes when they cannot spend it.

No, the government will not demand to get paid in crypto. It will demand to get paid on the market equivalent of the crypto in Euros and Dollars. Then they can convert it back if they so choose.

Armies in this case are a stand-in for state power.

The entities that collect money and who decides how much money is printed are in reality the same persons.

> No, the government will not demand to get paid in crypto.

Some already allow it: https://www.govtech.com/policy/two-governments-charge-ahead-...

So what you said is already proven wrong: They do not demand to be paid in the state currency.

> are in reality the same persons

I'm from Belgium.... how so? I'm sure the ones who collect taxes here (=Country, region Flanders, province and town) are different than the European Central Bank.

Those governments are directly converting the bitcoin to US dollars, thereby creating demand for US dollars when they spend it. The result is exactly the same.

The EU is a bit different, but broadly the director of the ECB is chosen by the European Council, which is part of the EU government, which your government is part of, and also spends some of the money collected directly, and instructs national governments to implement and collect quite a few taxes

> Those governments are directly converting the bitcoin to US dollars, thereby creating demand for US dollars when they spend it. The result is exactly the same.

So now you are saying that the whole economy could run on crypto: Pay taxes in crypto, getting paid by government in crypto.

So the only user of fiat would be the government, because somehow they want to convert first to dollars to go back to crypto.

I think you just made my point, that government has no control over what we will use as currency.

People have to buy Dollars and Euros because governments require people to pay taxes in those currencies. If you don't pay then they'll seize your assets by force.

You forgot the other half of taxes: the spending part. So to be complete: governments collect and spend taxes.

When contractors demand to get paid in crypto, or offer a discount, governments will move towards crypto just like any other party in the system.

Government contractors have no power to make such demands.

Seems like they already want to: Miami Pushes Crypto With Proposal to Pay Workers in Bitcoin

https://www.bloomberg.com/news/articles/2021-02-11/miami-may...