Social Question

RedDeerGuy1's avatar

Are there any examples of different types of currency in the same jurisdiction's?

Asked by RedDeerGuy1 (24986points) November 3rd, 2020

Like food stamps but more complex? Like having food, and luxury’s needing different currencies? Also a normal currency for everything else?

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7 Answers

zenvelo's avatar

Yes and no. One can go onto a college campus and spend “food points” at the dining combos or at the food vendors, but you can’t use it in other stores on campus.

But in reality, it is all just a representation of the primary currency. Currency carries an important quality- fungibility.. When currencies in use in a place are not fungible, the economy becomes very inefficient and transaction costs rise. It would not make sense to have dollars for one type of good and have to use, say, ducats for another type of good.

RedDeerGuy1's avatar

@zenvelo I never thought of food vendors on a college campus. Thanks for adding to the conversation. I was thinking along the lines of gift cards that are limited to a specific type of merchandise.

zenvelo's avatar

@RedDeerGuy1 Gift cards aren’t in a different currency, they are still in USD in the United States and Loonies in Canada. They’re just restricted in where they can be spent.

Some places will accept Bitoin, but they treat BTC like they would a foreign currency: they have to convert the BTC into the local currency and that tells yo how much can be spent in that store.

RedDeerGuy1's avatar

@zenvelo Maybe parents can have fun making family bucks for perks like candy and extended curfew? In Alberta a store gives Covid-19 bucks to anyone waring a mask in the store that can be redeemed in specific stores in the town.

Darth_Algar's avatar

Company scrip use to be fairly common. Particularly in towns that were set up by a company around a particular industry or resource. Essentially the company purchases all the land around that industry (like, say, a mine) and builds a functioning town for its workers to live in. The company basically owns and operates everything in that town, even down to the stores. The company then pays its workers in scrip – currency that can only be used at the company-owned stores. This use to be common, but is now prohibited by law in the United States (can’t say about elsewhere).

Call_Me_Jay's avatar

My dad was a US soldier in occupied Germany circa 1952. He said some of the allied soldiers were given chits (vouchers) for brothels.

Strauss's avatar

In Vietnam during the American war, the military would issue a script that was equivalent to dollars, but could be recalled and reissued at any time. Theoretically this was to keep US dollars from flooding the local economy.

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