LeoGlossary: Currency

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An item that is used medium of exchange for goods an services.

Since the evolution past the barter system, currency is the primary medium of exchange since it allows for standardization. This is usually focused within a particular nation although it has extended globally for the more common currencies.

Fiat currency is the best known today. These are the USD, EURO, YEN, and POUND. They are originally under the control of the government although most are overseen by the Central Bank with the commercial banking system responsible for the issuance through debt.

Currency of this nature also serves as legal tender for the country. This means that all creditors are required to accept it.

History is filled with private forms of currency. As stated, it is really a medium of exchange. Today, we see a lot of excitement surrounding cryptocurrency which is a built entirely on the Internet.

Many are forecasting the impact upon the entire global monetary system. Cryptocurrency has the potential to fill roles other than just currency.

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