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In all actuality these debt backed currencies are backed by only more debt or higher promise to pay and no more. This type of currency is referred to as fiat currency, of which all world currencies to be able to using since 1971. In 1944, after WWII ended, all the Central Bankers met in Bretton Wood USA. Binding agreement was signed by all the attendees’ because the Bretton Woods Agreement which placed the US Dollar due to the fact world’s reserve currency and also places was backed by 10% gold. All the nations backed their currencies in Dollars which was backed by gold at $35.00 per ounce.
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