[evgen]

No, you are paying with whatever currency the counter-party accepts. What backs the debit/credit card does not matter as long as the issuer thinks you have the assets to cover the loan they are making. If I have a card linked by my brokerage account I am not paying for dinner with shares of AMZN, I am paying in dollars and at some point will be required to convert some asset into dollars to cover the loan.

[baddox]

But this is a pretty inconsequential semantic difference. You could just as easily say that you’re selling dollars and the grocery store is paying you in bread.

[evgen]

No, it is a very significant difference and is not just semantics. The transaction is clearing in dollars and those dollars are moving from buyer to seller. There is no other currency involved in the transaction. The fact that dollars are constant and the seller could be exchanging bread, milk, cars, or bars of gold for the dollars tells you what the medium of exchange is here.

Once the transaction has cleared the seller can convert the dollars into euros, yen, ruble, pesos, or bitcoin and it has nothing to do with the actual transaction.