To say that taxation was a sensitive subject in the newly independent nation is an understatement. Taxation without representation (that should be a familiar phrase) was one of the principle reasons for declaring independence from the British, and was seen as a symbol of government overreach and violation of individual liberties. The new confederation of states wanted ultra-limited central government, and the issue taxation would have been a highly contested theme that may have threatened the unity of the new republic.
Answer: yes and no. For the most part yes as it allows the government to pick and choose what is and isn't recognized as a local currency. A good example of fiat money is gold.
