I assume the point is that an individual wouldn’t just form a trust link with another individual without some confidence of their “true” identity. For me to trust someone’s currency, I would either need to be very sure of their identity through some trusted third-party system (e.g. a centralized system like government ID), or be involved in an extensive social (and probably in-person) relationship that would be difficult to fake (like friendship).

For the latter, what I mean is that it’s probably prohibitively difficult to maintain two significant in-person social graphs that have no overlapping members. Sure, people can get away with it for things like romantic affairs, but the incentive there is very different than money exchange, not to mention that romantic affairs often get discovered.

Read the linked website. They include validators, a decentralized set of organizations, that can check government IDs to provide that sort of trust.

(This is like the only response I seem to be contributing, no one seems to have read the full thing, so people keep asking questions like this that are answered by the source, so there is no interesting conversation).

It's not quite "identity" that we need to verify, but rather uniqueness. Centralized approaches are theoretically easy; I'm not sure there isn't a possible decentralized solution. The one proposed does seem to be a partial solution, but probably not enough of one.

Yes, I thought exactly the same. And immediately after: "then what's the point...?"