I wonder if we had a similar reaction and controversy over the adoption of money versus the prior convention of barter, way back in pre-history.
Graeber's book Debt the first 5000 years might be a good starting point.
A lot of people still haven't fully internalized what it means for cash not to be tied to any particularly tangible item in terms of value.
but your main point stands, the paper money depended on the power of the state.