Currency

Part of a series on
Numismatics the study of currency
Glossary
Currency Coins Banknotes Forgery List ISO Circulating currencies Africa Asia Europe North America South America Oceania Local currencies Company scrip LETS Time dollars Fictional currencies Proposed currencies
History of money Historical currencies Aksumite Achaemenid Byzantine Chinese Filipino Greek Indian Italian Japanese Roman Thai Tibetan Medieval currencies
Production Mint Designers Coining Milling Hammering Cast Metals Errors
Collection Coin collecting Coins Commemorative coins Bullion coins Grading Notaphily Banknotes Commemorative banknotes Exonumia Credit cards Jetons Medals Tokens Cheques Scrips Scripophily Stocks Bonds
Numismatics portal Money portal
v t e

A currency^[a] is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.^[1][2] A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state.^[3] Under this definition, the British Pound sterling (£), euros (€), Japanese yen (¥), and U.S. dollars (US$) are examples of (government-issued) fiat currencies. Currencies may act as stores of value and be traded between nations in foreign exchange markets, which determine the relative values of the different currencies.^[4] Currencies in this sense are either chosen by users or decreed by governments, and each type has limited boundaries of acceptance; i.e., legal tender laws may require a particular unit of account for payments to government agencies.

Other definitions of the term currency appear in the respective synonymous articles: banknote, coin, and money. This article uses the definition which focuses on the currency systems of countries.

One can classify currencies into three monetary systems: fiat money, commodity money, and representative money, depending on what guarantees a currency's value (the economy at large vs. the government's precious metal reserves). Some currencies function as legal tender in certain jurisdictions, or for specific purposes, such as payment to a government (taxes), or government agencies (fees, fines). Others simply get traded for their economic value.

The concept of a digital currency has arisen in recent years. Whether government-backed digital notes and coins (such as the digital renminbi in China, for example) will be successfully developed and implemented remains unknown.^[5] Digital currencies that are not issued by a government monetary authority, such as cryptocurrencies like Bitcoin, are different because their value is market-dependent and has no safety net. Various countries have expressed concern about the opportunities that cryptocurrencies create for illegal activities such as scams, ransomware (extortion), money laundering and terrorism.^[6] In 2014, the United States IRS advised that virtual currency is treated as property for federal income-tax purposes, and it provides examples of how long-standing tax principles applicable to transactions involving property apply to virtual currency.^[7]

Cite error: There are <ref group=lower-alpha> tags or {{efn}} templates on this page, but the references will not show without a {{reflist|group=lower-alpha}} template or {{notelist}} template (see the help page).