The Norwegian krone (NOK) is legal tender in Norway according to the Central Bank (Norwegian: Sentralbankloven) of 24 May 1985. [30] However, no one is obliged to accept more than 25 coins of each denomination (of which 1, 5, 10 and 20 NOK denominations are currently in circulation). In the United States, the recognized legal tender consists of Federal Reserve notes and coins. Creditors are required to accept it as an offer of payment to settle a debt; However, unless prohibited by state law, private companies may refuse to accept some or all forms of cash offers unless a transaction has already taken place and the customer has not been at fault. According to monetary law, there are limits to the value of a transaction for which only coins are used. [22] A payment in coins is legal tender only for the following amounts for the following coin denominations: The laws ensure that nothing but official legal tender gains enough traction to be used as money in the economy. In particular, cheques and credit cards are not legal tender – rather, they are a substitute for money. Legal tender is anything that is recognized by law as a means of paying a public or private debt or fulfilling a financial obligation, including tax payments, contracts, and fines or damages. The national currency is legal tender in virtually all countries. A creditor is required by law to accept legal tender to repay a debt. Legal tender is determined by a law that determines what to use as legal tender and the institution authorized to produce and deliver it to the public, such as the United States. Treasury in the United States and Royal Canadian Mint in Canada.

Sometimes countries accept the legal tender of another country if they are close to the border or have close trade relations. Shops and restaurants near the Canada-U.S. border accept U.S. and Canadian dollars to make it easier for tourists. Some countries around the world actually took the U.S. dollar as their own legal tender rather than their currency because they felt the dollar was more stable in value. This practice is called dollarization or currency substitution. Banknotes and coins are considered legal tender, while stamps are not considered legal tender. Many countries consider coins and paper money to be an integral part of legal tender. Different jurisdictions understand and define legal tender differently.

As a result, cashless forms of payment such as credit cards and cheques are never considered legal tender. The designation and specification of a national currency by legal norms and regulations should be recognized as a medium of exchange and as a source of payment of debts due. To the extent that legal tender includes all denominations in circulation, the sum of the coins and the value that can be accepted as legal tender differ from country to country. Money orders and cheques are not legal tender as they are only accepted at the discretion of the seller, lender or creditor. It is commonly referred to as legal money. U.S. legal tender regulations are very clear, although most people don`t like to think about the legal perspectives of the issue at hand. Section 31 of the Currency Act of 1965, entitled « Legal tender, » states that « United States coins and currencies (including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks) are legal tender for all debts, public duties, taxes, and duties.

The Coinage Act of 1873 was replaced by the Coinage Act of 1965. The federal government introduced new regulations separating dime coins from the silver portion and adjusted the silver content to half a dollar. Demonetization refers to the law that aims to eliminate the legal tender of a particular currency. This happens in most cases in situations where the country(ies) decide to have a different currency than the existing ones. This means that currently available currencies are removed from the system so that they no longer circulate. This is usually done in circumstances where the country intends to replace old currencies with new ones. This will be achieved through the introduction of alternative coins and banknotes. On the other hand, demonetization is the direct opposite of demonetization, where the country recognizes available currencies as legal tender. Singapore and Brunei Darussalam have had a currency swap agreement since 12 June 1967. Under the terms of the agreement, Singapore dollars and Brunei dollars can be exchanged for free at face value in both countries. Thus, the currency of one country is accepted as a « usual tender » in the other country.

[31] The small Republic of the Marshall Islands (RMI) has also announced that it will introduce a new cryptocurrency, the sovereign, as legal tender. The state will be tied to an existing, decentralized peer-to-peer cryptocurrency market. Currently, the U.S. dollar acts as currency and legal tender in the RMI and will continue to do so alongside the new legal tender when the government begins issuing states. By default and intentionally, legal tender laws prevent the widespread introduction of anything other than existing legal tender into the economy. A cheque or credit scan is not legal tender; It acts as a substitute for money and is only a means by which the checkholder can eventually obtain legal tender for the debt. Cryptocurrencies are generally not accepted as currency, mainly because they are not legal tender. In May 2013, Arizona`s governor vetoed a bill that would have made gold and silver coins legal in the state, in addition to existing U.S. coins. More recently, legal tender laws have created fiat money, which is money that is not backed by gold or any other commodity.

Instead, it is backed by the law of the land. Fiat currencies are more easily manipulated by governments to lower interest rates in order to fight unemployment. Although the Reserve Bank Act 1959 and the Currency Act 1965 stipulate that Australian notes and coins are legal tender, Australian notes and coins do not necessarily have to be used in transactions, and refusing to accept payments as legal tender is not illegal.

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