Artificial Currency

An artificial currency is a financial medium which facilitates accounting or financial transactions, but is not used as a medium of exchange. Artificial currencies may be simple ledger accounting systems or they may be complex currency baskets. In the case of artificial currencies which act as currency baskets, the value of each unit of a currency is determined by the values of its underlying fiat currencies.

Examples of artificial currencies include special drawing rights and the European Currency Unit formerly used as a medium of exchange within the European Economic Community.

More on this topic:
Forex tading comparison
Fiat currency definition
Sovereign money definition
Cryptocurrency definition

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