Yes, and it already happened
You can't make a bank in doodle god. Plus if you could you would need money+human=bank.
The national central bank holds the gold reserve to back the use of paper money. The gold is a security measure that allows the trust of the paper money having worth. Paper money is a note for trading that is used in place of gold.
gold+paper=money
money that can not convertible into the Gold and Silver like paper and coins money issued by Government.
The demand to convert paper money into gold was a demand beyond what the treasuries of countries could supply.
The gold standard was a system of money where the government owned and kept an amount of gold that was represented by the paper money issued. Paper money was called gold certificates and originally you could present the paper money and be given the stated face amount of gold for it. People like libertarians and strict constitutionalists supported the system, but the US stopped using it.
Coins and Paper Money.
Paper Money?
When the government prints paper money without the gold to back it up, the result is inflation.
No. Early money started out with as grains and food, (Bartering), then went to shells, then to gold, and finally to coins and paper money.
When the government prints paper money without the gold to back it up, the result is inflation.
Gold + Paper = Money