3 ms·
>> but were backed by a commodity But they weren't. The bank didn't hold a pile of gold coins to match every promissory note. The note was backed by the repu
by sandworm101 5y ago
>> but were backed by a commodity
But they weren't. The bank didn't hold a pile of gold coins to match every promissory note. The note was backed by the reputation of the bank, just like today.
- ncmncm 5y agoIndeed, before coins (c. 8th century BCE) money was nothing but promissory notes. Coins were invented at that time, at least 3000 years after money, to simplify military logistics.