This is actually a much more accurate way to describe how monetary accounting works. All fiat accounts are just the historical record under our legal system of what you have earned according to our accounting rules.

This an interesting theory, because money is not just the token of exchange, but the instigator of exchange. The government doesn’t just provide the piece of paper that changes hands, but they establish the socio-political ecosystem where exchange is a permitted and encouraged social norm. Without governance or some kind of culture of accounting, there is no reason for people to perform exchange. Theft or favors would be more likely. Favors are not exchange, because one party does things to stay in the good graces of another, without necessarily equal reciprocation. A non-monetary economy runs on favors and power. We see this in places where monetary accounting is limited, because it’s just the naturally emergent thing, so that’s how politics runs.

Practical and political limitations make the automatic rebate to the recipient a necessity and not a real policy variable. Without the rebate, we couldn’t keep accounting rules enforced. But other than that, this is 100% accurate.