[skybrian]

Government tax collection, which in turn depends on the economic health of the nation. If a country’s economy collapses and/or the government is weak at collecting taxes then inflation becomes more likely.

One effect is that the government currency is the unit of value for tax accounting. For the US, you need to figure out what your income is in dollars in order to do your taxes. For assets in other currencies, you need to convert.

Another effect is taking tax payments in government currency. However, I suspect it would be much the same if the government did the currency exchange for you? Whoever does the exchange will drive up the demand for government currency.