Anything with a country or place name is a moronic idea. It defeats one of the main attractions of any good currency; being accepted by as many people as possible. Why would I use Californiacoin, when I could use Bitcoin, which is accepted by the rest of the world as well?
So, have people never accepted US dollars in another country?
Not really. Try to buy something with 1000 "Tiyin" in your town. Same if i try to buy something with dollar in my village...