Euro banknotes and coins will become legal tender in most euro area countries on 1 January 2002. Although one side of the coins is used for different national marks for each country, all banknotes and coins are legal tender throughout the euro area. Although some euro area countries do not put 1 cent and 2 cent coins into general circulation (prices in these countries are generally considered to be rounded to a full multiple of 5 cents), 1 cent and 2 cent coins from other euro area countries are still legal tender in these countries. In 1964, the Reserve Bank of New Zealand Act stipulated that only notes issued by the Reserve Bank were legal tender. The Act also ended the right of individuals to redeem their banknotes for coins, thereby eliminating the distinction between coins and banknotes in New Zealand. The Act came into force in 1967 and established as legal tender all banknotes of five dollars in New Zealand dollars and above, all decimal coins, predecimal pence, shilling and guilder. The Decimal Currency Act, which created the basis for a decimal currency introduced in 1967, was also passed in 1964. Sometimes monetary issues such as commemorative coins or transfer slips may be issued that are not intended for public circulation, but are still legal tender. An example of such a currency is the Maundy currency. Some currency issuers, notably Scottish banks, issue special commemorative notes for normal circulation (although no Scottish or Northern Irish notes are legal tender in the United Kingdom). In addition, some standard coins are minted on higher-value dies as «non-circulating» versions of the coin, which collectors can purchase for an additional fee.
These documents are nevertheless legal tender. Some countries issue precious metal coins on which a monetary value is indicated well below the value of the metal containing the coin: these coins are called «non-circulating legal tender» or «NCLT». On the other hand, gold or silver coins do not necessarily have to be legal tender if they are not fiat money in the jurisdiction where they are offered as a means of payment. The Currency Act of 1965 states (in part): 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 legalized gold and silver coins in the state in addition to the existing U.S. currency. The opposite of demonetization is remonetization, in which a form of payment is re-established as legal tender. Demonetization is the act of stripping a monetary unit of its legal tender. It occurs whenever the national currency changes: the current form(s) of currency are withdrawn from circulation and withdrawn, often to be replaced by new notes or coins.
Sometimes a country completely replaces the old currency with a new currency. On 8 November 2016, Prime Minister Narendra Modi announced that the existing INR 500 and INR 1000 notes would no longer be accepted as legal tender in order to combat counterfeiting, tax evasion and the shadow economy. [27] The Reserve Bank of India has described a system whereby holders of such notes can either deposit them into their bank accounts for the full and unlimited value or exchange the notes for new ones, subject to a cap. [28] The primary purpose of this Act is to ensure national acceptance of U.S. currency, in accordance with constitutional language, which reserves to Congress the power to create a single currency of equal value throughout the United States. Although the law provides that U.S. currency is legal tender and can be accepted for debt repayment, it does not require the acceptance of cash payments, nor does it provide that no restrictions can be placed on the acceptance of cash. [48] However, there are some exceptions.
In 2018, in the face of devastating hyperinflation, Venezuelan President Nicolas Madura ordered all federal institutions to accept a new electronic currency, the Petro, as legal tender. The Venezuelan Petro is centrally controlled by the Venezuelan government based on its own assessment of the value of its natural resources. It has been claimed that the Petro is backed by Venezuela`s natural gas, mineral and oil reserves. However, Venezuela`s experience with the Petro has not progressed much, and the Petro, despite its status as legal tender, does not generally circulate in the form of currency. After the Civil War, paper money was controversial as to whether it should be accepted as a means of payment. In 1869, Hepburn v. Griswold concluded that Henry Griswold did not have to accept paper money because it could not really be «legal tender» and that it was unconstitutional as a legally enforceable means of paying debts. This led to the legal tender cases in 1870, which overturned the previous judgment and established fiat money as a constitutional and appropriate legal tender that must be accepted in all situations. [44] The thousand-guilder notes are declared invalid. It will be a blow to black market traffickers and others like them, but even more so to hidden people and everyone else who has money that cannot be explained. In order to pay for a thousand-guilder note, you must be able to indicate how you obtained it and provide proof. They can still be used to pay taxes, but only until next week.
The five hundred notes expire at the same time. Gies & Co. still had a few inexplicable thousand guilder notes with which they paid their estimated taxes for the years to come, so everything seems to go too far. According to the Central Bank (Norwegian: Sentralbankloven) of 24 October, the Norwegian krone (NOK) is the norm. May 1985 Legal tender in Norway. [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). Under U.S. federal law, U.S.
dollar cash is a valid and legal offer to pay past debts when offered to a creditor. In contrast, federal law does not require a vendor to accept federal currency or coins as payment for goods or services exchanged at the same time. Therefore, private companies can formulate their own policies on whether or not to accept cash, unless state law provides otherwise. [3] [4] The Decimal Currency Act 1970 regulated legal tender before the introduction of the euro and established provisions similar to those laid down in British legislation (all of which were taken over by the previous British law), namely: coins over 10 pence have become legal tender for payments not exceeding £10, Coins not exceeding 10 pence are legal tender for payments not exceeding £5 and bronze coins have become legal tender for payments not exceeding £5. Legal tender for a payment not exceeding 20 pence.