If people have no confidence in central banks, does that mean that money can lose its value, since its signed by the governor? Will it be possible that people lose confidence in money or central bank that they barter to get goods and services? Can other banks issue money instead of central banks of a country?
The buying power of money lies in people's willingness to accept it, so it is very much vulnerable to people's belief in it. People can lose confidence in a currency and look for alternatives such as barter or gold or other nation's currencies, in places like Zimbabwe this is happening today. Most nations do not allow banks other than the central bank to issue currency, although some do allow other national currencies to be accepted.
