Is US Dollar backed up by gold?
No, the dollar is not backed by gold. And to your specific question, no other currency in the world is backed by gold either, so that’s a non-issue. No country on earth has a gold-backed money system any more. That’s ancient history. All currencies are unbacked fiat currencies (as in, the local currency has value according to government fiat — the government says it’s so.) A currency has the value that it does for the same reason gold or anything else has monetary value — supply and demand. “Demand” is of course influenced by the fact that the local government has declared a fiat currency — so in the U.S., we use the US Dollar because that’s the official currency, and no matter how you make money, the government makes you pay taxes in US dollars. Result: our habit of using the dollar. It would be huge hassle to use something else like the Euro or Pound in daily transactions in the U.S, so we don’t. Though we are totally free to, if we wanted. You could open up a convenience store an
