Earlier quoted context omitted.
Government would still have to set up a center of "approving" unknown money coming from other sources into local economy. These centers, as you can expect, will be massively bribed by everyone who needs to launder their tainted coins. Also, governments will be much more limited in power when they can't print their money at will and do any "deficit spending".
unknown money coming from other sources into local economy These centers actually exist even today. I personally know places where you can buy dollars using the local currency for something like a 10% discount on the market rate. They are obviously very shady and aren't used by anyone close to being respectable. If you use them and are big enough to matter, expect to be screwed over by law enforcement pretty much the…
This, is where I stopped reading.