The Case for Immediately Closing the Central Bank (youtube.com)
The money that the central bank uses is really a claim. (Money is not debt.) It's a claim on the assets that it owns and is on its balance sheet. The money is also backed by these assets. All that really determines the value of fiat money is the demand for it, its expected purchasing power, the supply of units. If you ‘took a chainsaw’ to the central bank of Argentina, you would turn a very bad currency (or possibly zombie currency, forced to hold and use because of government policy) immediately into a very good, anti-inflationary currency. You force shortterm restraint on the government policy.
Dollarization in Argentina would put them subject to the US Fed. It's not that difficult to reverse a dollarization, the government just introduces their new fiat currency.
‘When you have a monetary policy, it needs to be ethical. You cannot exploit people.’
If people decide they don't want to use it anymore, it loses all its value. But if you don't want to use gold, you can still sell it for industrial purposes or whatever.