How to build a State in a non State environment?

[Stan]

However, your second solution is much more elegant. Simply use US currency. As I understand it, it is currently one of the benchmark currencies used in the world (at least until it becomes the Chinese yuan).

Heck, we were using it to bribe everyone in northern Iraq prior to the invasion. Although another currency that is not as easy to counterfeit might be better. Maybe the Australian dollar.

That's been the gold standard since the 70s and even today both in Africa and on this end of the world. Even as much as the dollar fluctuates most prefer to deal in USD. The Euro is not as trusted and not sure it's any harder to counterfeit based on stats in Europe.

Actually, the more I think about the problem the more I think an external currency would be best. The reason I preferred not having money is because non-specie backed money (paper currency not tied directly to the value of gold or silver) the value of the money is largely dependent on the trust in the value of the government. Where there is a weak government you tend to have high inflation. So if you have no government the natural response is to have no money. However, as you have pointed out, that idea is antiquated. It would be smarter to us an external benchmark currency until the territory had a stable government.

Excellent point ! In fact most were discerned in early 84 when half of Zaire switched to the USD for trading. They even named the trading street "Wall Street" situated on the curb across from our embassy

It wouldn't be long before few performed any transactions in local currency other than the government and military. That led to a whole new set of problems though.