Re:North Korea Changes Currency
by jplewicke on Wednesday December 02, 2009 @10:29AM
(#972200)
This actually happened in Iraq after the first Gulf War: http://en.wikipedia.org/wiki/Iraqi_Swiss_dinar . Since the government was no longer printing the older currency, it was then immune to inflation by Saddam's government. The old currency appreciated against the newer, inflated currency until we deposed Saddam. It's amazing how little you need to back a currency, and how unbacked ones can be stronger than fiat currency.
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Didn't the same situation exist in Neuromancer where all governments had abandoned paper money but criminals continued to use it?
Yet another example of Gibson's disturbing prescience.
A fascinating example. I recently talked with someone about fiat currencies being backed by the taxation power of the issuing state, to get their worth. It seems that once the system is booted this help may be no longer necessary.