40 votes
Accepted

How would you get a medieval economy to accept fiat currency?

Limited purposes at first. Medieval societies did accept and use 'paper money' for specific purposes. In a way, there is a step between specie and fiat currency. Say that first, you had silver. At the ...
o.m.'s user avatar
  • 115k
18 votes

How would you get a medieval economy to accept fiat currency?

If you want to change the whole economy then it can't be done without also taking over the economy. But if it's just in terms of trading with them then it's just a voucher. Merchants have used these ...
Kilisi's user avatar
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17 votes

What Are the Pitfalls of Using Diamonds as Currency?

Hard to Standardize Gold can be cut into standard weight chunks known as coins. These can be given stamped shapes to minimize the chance of imposture. Furthermore, gold is gold. Some gold is not ...
Mary's user avatar
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11 votes

How would you get a medieval economy to accept fiat currency?

I'd recommend checking out David Graeber's Debt: The First 5,000 Years. It directly addresses this question of how monetary systems developed, and challenges the notion that the progression went from ...
patman's user avatar
  • 111
11 votes

What Are the Pitfalls of Using Diamonds as Currency?

Benefit vs Cost Any form of currency can be destroyed, stolen, lost, counterfeited, etc. Diamonds are no exception. Any form of currency, in order to be useful, has to be plentiful enough to smooth ...
elemtilas's user avatar
  • 40k
9 votes

What Are the Pitfalls of Using Diamonds as Currency?

There are two major problems, both pertaining to counterfeit money. An average person cannot tell the difference between a real diamond and a zircon crystal. You need a professional to tell if the ...
Jani Miettinen's user avatar
8 votes

What Are the Pitfalls of Using Diamonds as Currency?

They burn up, perhaps too easily There was an experiment when a scientist (IIRC French) decided to check what would happen if a diamond would be put into the fire. Poof went the diamond. Diamonds are ...
Vesper's user avatar
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6 votes

How would you get a medieval economy to accept fiat currency?

Is "medieval" in the question restricted to Europe in the Middle Ages between about AD 500 and about AD 1500? Or can if refer to Mesoamerica, India, Persia, China, Egypt, Japan, etc. during ...
M. A. Golding's user avatar
5 votes

What Are the Pitfalls of Using Diamonds as Currency?

Use a substance that can only be made by alchemy Gold can be counterfeited by alchemists, but diamond can be counterfeited by anyone. Among metals, gold has a color, density, and hardness that makes ...
Nosajimiki's user avatar
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4 votes

How would you get a medieval economy to accept fiat currency?

Step 1: Disguise your Fiat Currency as a Bullion Currency While it is not strictly necessary to do this, it will speed up the processes if you can make the locals trust the intrinsic value of your ...
Nosajimiki's user avatar
  • 92.9k
4 votes

How would you get a medieval economy to accept fiat currency?

The Brazilian economy had a long history of inflation, and lack of faith in the currency unit. In 1994 the new Real was linked to the Unit of Value which was linked to the cost of living index. The ...
Richard Kirk's user avatar
  • 8,698
4 votes

How would you get a medieval economy to accept fiat currency?

Make the currency both useful and extremely difficult to reproduce. Gauge slips made out of hard/tough steel alloy for small amounts, inch/foot/yard standard rods for larger amounts (realistically, 25/...
Mark Morgan Lloyd's user avatar
3 votes

How would you get a medieval economy to accept fiat currency?

Establish reliability over generations The key to a fiat currency is that its value is determined by the market of goods that can be purchased by it. Nobody will accept currency if they can't later ...
Robert Rapplean's user avatar
2 votes

How would you get a medieval economy to accept fiat currency?

If you dig into what was going on in the Mediaeval period (and before and after as well) you'll find that the colonists will simply fit right in and merely need to develop a reputation for honoring ...
Perkins's user avatar
  • 4,275
2 votes

How would you get a medieval economy to accept fiat currency?

This is quite similar to how modern society, familiar with fiat currency, accepted cryptocurrency. Although the concept is not understood by all, the herd mentality and the "benefits" of ...
doiknowanything's user avatar
2 votes

How would you get a medieval economy to accept fiat currency?

Or brute forcing their economic domination by flooding markets with mass manufactured goods and asteroid mined gold. By not doing so. But rather trading goods and services in only fiat currency. If ...
Journeyman Geek's user avatar
1 vote

What Are the Pitfalls of Using Diamonds as Currency?

Working from @nosajimiki's answer, create an alchemical process that produces a substance that is alchemically inert, doesn't occur in nature, is suitably resilient, and is unmistakable. Some sort of ...
Tony Ennis's user avatar
  • 1,888
1 vote

What Are the Pitfalls of Using Diamonds as Currency?

An economy of any scale running purely on one commodity is as impractical as one running purely on ad hoc barter. Using a rare material like gold is most directly useful for large transactions, where ...
IMSoP's user avatar
  • 459
1 vote

What Are the Pitfalls of Using Diamonds as Currency?

The issues with all "hard money": Limited supplies impose inflationary pressures on a growing economy. Discoveries of large new deposits can cause deflation when speculators short the ...
jwdonahue's user avatar
  • 254
1 vote

What Are the Pitfalls of Using Diamonds as Currency?

There are no problems with it! There have to be enough around that the economy isn't under constant threat of "money" running out, but they also probably need to be controlled by the ...
Russell Fox's user avatar

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