We’ve been taught this way. The majority of the world that is. If I had to fathom a guess, I would say 99.9% of the world population doesn’t know what fiat it, or how it is created, etc.
All they know, that all their adult lives, they will live and work for something called money.
It started when you were a child. You’d get 1 Rupee or 1 Dollar or 1 Peso from your parents, uncle, aunt, etc. and you knew with this piece of paper, whereveryou present it – it would be accepted and in return, you could get whatever it was you were trying to buy (assuming you had enough money to buy with).
This confidence in the currency that we have today (be it digital or physical currency notes), has manifested in each nook and cranny of our trading society.
When was the last time you remember giving a currency note and the receiving party refused to accept it – citing it was fiat money, it held no value, etc.
Me neither. I too cannot remember such an instance (and please spare me the examples of Venezuela or Zimbabwe).
The fiat instrument was created so that society believed very strongly that all debt can be settled using it (whilst being oblivious to the instrument itself being a debt instrument).
We brand it, market it, use it, preach it, implement it in the law, etc. as this being the truth. That this is the best mechanism for humanity and by and large, we have embraced it, because it also allows us (the government, the ultra-wealthy and corporations) to engage in modern-day slavery, and one of the tools that are used is fiat money.
Our blind faith comes from a very young age.