Fiat currency, as controlled by governments, is the literal opposite of hard money. It is the softest money in the entire world, in terms of the ease with which it gets created.
One of the things 2020 has shown us is how Jay Powell, the Chairman of the Federal Reserve, can literally call a press conference and create hundreds of billions of dollars, on the spot, on a Sunday night.
Now that is some non-hard money. For every central bank, it’s the same. Fiat money issued by governments can be created in mass amounts at the touch of a button. Central Bank Digital Currencies (CBDCs) will have the same characteristic, which is why they will never qualify as “hard money” either, and never function as reliable stores of value.
Jeff W, Guest blog