Private Currency

Filed Under: ,
Dictionary Says

Definition of 'Private Currency'


Units of value issued by private companies or organizations. A private currency is typically issued by a private firm or group, to act as an alternative to a national or fiat currency which would be the standard unit of value in a country. Although issuing private currency is restricted by law in many countries, there are still estimated to be thousands of private currencies circulating across the world.
Investopedia Says

Investopedia explains 'Private Currency'


Private currencies are often issued and backed by physical commodities, such as gold or silver. By backing a private currency with a commodity, issuers are able to increase the security of the asset, while limiting the effects of inflation on the currency's value, since commodities tend to move closely in line with inflation. Private currencies have been used in the United States since the mid-1800s and still continue to be used today, in some localities. For example, the "Ithaca HOUR" is a printed currency which has been exchanged in Ithaca, NY since 1991.
comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center