4 ms·
Notes and coins are completely different things from a legal standpoint. Only bank notes are unlimited legal tender issued by the central bank. Coins are more o
by fhars 3y ago
Notes and coins are completely different things from a legal standpoint. Only bank notes are unlimited legal tender issued by the central bank. Coins are more of a practical aid for low value cash transaction and are issued by the governments' mints.
You can pay a ten billion debt in 5€ notes, but the recipient can refuse your payment if you show up with five billion 2€ coins, which is like two thirds of the total circulation and would require several of the largest freight ships commonly used on European rivers to deliver.
- lucumo 3y agoYou're mixing a few things up. Euro coins are also legal tender, but minting and designing them is a national competence. The ECB decides on the volume though, and there are limits to the designs of the coins. Interestingly, member states have to inform the European Commission of the design, but not the ECB. Source: https://www.ecb.europa.eu/euro/coins/html/index.en.html https://www.ecb.europa.eu/euro/coins/html/index.en.html Legal tender as a concept is also usually not that useful. It's perfectly legal for a shop to refuse certain coins and bills. Dutch shops commonly refuse 1 and 2 cents coins (rounding the amount to 5 cents for cash payments), as well as large denominations out of safety concerns. 100€, 200€ and 500€ are very rare as a consequence. Source (in Dutch): https://www.rijksoverheid.nl/onderwerpen/geldzaken/vraag-en-antwoord/kan-ik-met-een-wettig-betaalmiddel-overal-betalen https://www.rijksoverheid.nl/onderwerpen/geldzaken/vraag-en-...