Seems like a horribly inefficient national defense strategy. A country is on the brink of having a war levied against them by a belligerent, and plead for funds... some are scared for their life and donate their entire savings, others give nothing because they think/know their neighbors will.
Anyway, this is not a primary reason for having fiat money, but it is a reason.
Anyway, this is not a primary reason for having fiat money, but it is a reason.