Looking at it from another viewpoint, taxation is the act of taking something from an individual. Before 1913 (Federal Reserve Act), the only way the government could take from citizens was to actually take either property or cash. However the Federal Reserve Act gave the government an easier way. Just print more money. The more there is of something the less value there is. This allows the Federal Reserve to impose a tax by inflation any time the Fed. sees fit.
The only way Cypress differs from the US is that the money on deposit was is Euros, thus the national government could not, by itself, generate a taking via inflation.
Those with cash in American banks could see an inflation tax MUCH higher than the Cypress tax.