"I came up with a scheme that is un-dodgeable (kinda). Print money to pay expenditures, and limit expenditures to keep inflation in check. The tax is implicit, so you can't avoid it. Those holding the currency can't help but give a percentage of the value to the government. It's perfectly flat too. The only way to get around it is to operate in another currency. But if there are any expenditures at all, they are going to pay someone in the currency, and need to be spent somewhere. This would work best with minimal government expenditures to minimize the motivation to avoid using the currency. It would be pretty easy to make the implicit tax small enough to not only discourage avoiding the currency, but actually make the currency more stable than others tied to governments that don't know how to control spending." - Ivan Kirigin