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If I loose a £1 coin I loose a £1 but does the Government win?
The value is still in the economy, somewhere, even if the £1 coin has been physically lost. It’s what the coin represents that has value, not the physical thing itself (although the metal and labour to make it might have a nominal value). The government reprints fiat to cover estimated destruction of physical money, but they don’t keep the value. Although I guess they do get to decide where the value goes, whether to banks or to its budget, so maybe they do win?
Eseman
If I loose a £1 coin I loose a £1 but does the Government win?
I can remember when notes used to say “I promise to pay the bearer the sum of £1” so I guess the Exchequer wins if this promise is removed but it can’t work out why.