What drives the demand for any currency is not how it is perceived or what it may be “backed by”. It is the need to obtain that currency to enable the payment of taxes. Tax obligations create unemployment in the denomination of the tax until they are paid. This is how countries assure that they can provision themselves without a source of revenue that would compete with the private sector. The currency-issuing government never needs funding from the private sector as long as it doesn’t accept debt not denominated in the currency it creates at will. This makes taxation and borrowing obsolete in terms of funding and relegates them to inflation control and a means of securing social goals.