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That's what I thought too. Turns out, the gov't will regulate all sorts of alternative currencies and tell you what you can or can't use to pay for things, but then they won't even guarantee that merchants will accept the one physical note that the gov't itself issues, preferring to force you to rely on private companies' payment networks
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Yeah, I'd sort of assumed that the "this is legal tender" message on US currency meant that places had to accept cash, but in fact, that's not the case.