Lawful Money
Candlefocus EditorIn the U.S., lawful money has been in circulation since 1792, when Congress established a U.S. mint. At that point, gold, silver and copper coins became the standard form of legal tender. Since then, the U.S. has gone through several changes to the definition of lawful money, often adding more flexible forms of payment. Since 1958, for instance, the government has allowed for the conversion of paper money into silver coins, thus permitting another form of legal tender known as Silver Certificates.
Though lawful money is backed by the U.S. Treasury and has been accepted since the establishment of the Federal Reserve Act, it is not the only form of legal tender available. For example, checks, debit cards, credit cards and even digital forms of payment such as Bitcoin or cryptocurrency may be considered legal tender depending on the issuing country or locality.
Despite the broadened acceptance of other forms of payment, lawful money continues to be the legal tender of choice in the U.S. today. It helps to ensure the integrity of the U.S. dollar, while also protecting consumers against fraud and counterfeiting. As such, it is important to have an understanding of what constitutes lawful money, as well as the different forms of legal tender available in order to make informed payments.