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British money is - or was - explicitly an IOU. The notes bore the phrase "I promise to pay the bearer on demand the sum of (n) pounds ..." Used to be gold, not
by dwarman 11y ago
British money is - or was - explicitly an IOU. The notes bore the phrase "I promise to pay the bearer on demand the sum of (n) pounds ..." Used to be gold, not sure what you get these days. Other countries also, like India.
- altomami 11y agoEven the term "banknote" makes it explicit: a note (of credit) issued by the central bank. Coins are not formally IOU's, because historically they had intrinsic value.