1 thought on “Can the commemorative coins issued by the central bank circulate?”
Maxine
Can. The commemorative currency issued by the People's Bank of China is a legal currency, which is equivalent to RMB, which can be theoretically circulating, but in actual life, the actual value of the commemorative coin is higher than its face value, so generally no one will treat it as cash. Normal use. On the other hand, many people do not know much about commemorative coins, and it is difficult to judge true or false, so it is possible that others will not accept it. This expansion information: The legal tender, which refers to the fact that it does not represent substantial goods or goods, and the issuer does not fulfill the currency as a physical obligation; it only rely on the government's laws to make it a legal currency currency Essence The value of legal currency comes from owners believe that currency can maintain its purchasing power in the future. The currency itself does not have an internal value (Intrinsic Value). In conceptual, Fiat Money is prone to confusion with credit currencies. The credit currency is in charge of the government or central bank of a country. It is often used as a limited currency based on paper vouchers. exchange. Although the currency system was originally based on goods, the transformation from commercial currencies to legal currencies was a stable and global trend. The legal currency does not represent any tangible commodities, but is supported by law and requires people to accept all transactions. Even in the period of commodity currency, there are usually gold circulation in the form of bank vouchers, and the number is often greater than the real number of gold. In the effect, these are legal currencies, because if all bank coupons holders are required to redeem gold at the same time, the golden stock of the world will not be able to meet the demand. The banknote system that is supported by gold is the origin of the modern payment system. In modern payment systems, 100%of the currency is unable to convert. Before the 1930s, currencies have been generally supported by goods, or at least part of the product as support. Since the 19th century, gold has been the mainstream commercial currency in a long period of time. The circulating currency part is in the form of gold coins, but most of the currency is composed of banknotes representing the right of gold. Countries that can be converted to gold are called gold -based operation.
Can. The commemorative currency issued by the People's Bank of China is a legal currency, which is equivalent to RMB, which can be theoretically circulating, but in actual life, the actual value of the commemorative coin is higher than its face value, so generally no one will treat it as cash. Normal use. On the other hand, many people do not know much about commemorative coins, and it is difficult to judge true or false, so it is possible that others will not accept it.
This expansion information:
The legal tender, which refers to the fact that it does not represent substantial goods or goods, and the issuer does not fulfill the currency as a physical obligation; it only rely on the government's laws to make it a legal currency currency Essence
The value of legal currency comes from owners believe that currency can maintain its purchasing power in the future. The currency itself does not have an internal value (Intrinsic Value).
In conceptual, Fiat Money is prone to confusion with credit currencies.
The credit currency is in charge of the government or central bank of a country. It is often used as a limited currency based on paper vouchers. exchange.
Although the currency system was originally based on goods, the transformation from commercial currencies to legal currencies was a stable and global trend. The legal currency does not represent any tangible commodities, but is supported by law and requires people to accept all transactions. Even in the period of commodity currency, there are usually gold circulation in the form of bank vouchers, and the number is often greater than the real number of gold.
In the effect, these are legal currencies, because if all bank coupons holders are required to redeem gold at the same time, the golden stock of the world will not be able to meet the demand. The banknote system that is supported by gold is the origin of the modern payment system. In modern payment systems, 100%of the currency is unable to convert.
Before the 1930s, currencies have been generally supported by goods, or at least part of the product as support. Since the 19th century, gold has been the mainstream commercial currency in a long period of time. The circulating currency part is in the form of gold coins, but most of the currency is composed of banknotes representing the right of gold. Countries that can be converted to gold are called gold -based operation.