NOMISMA

Forced tender

強制通用 / cours forcé — Institutions

A measure that suspends the convertibility of banknotes and legally compels their acceptance.

Italy — The union, and paper / A bank counter
Italy The union, and paper / A bank counter

A measure that suspends the convertibility of banknotes and legally compels their acceptance (forced tender). It was introduced in France in 1848 and 1870.

⚠ Even when the promise "convertible to gold" is gone, paper money circulates because the law and tax authorities accept it.