TOKEN COIN Meaning and
Definition
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A token coin, also known as a token or exonumia, refers to a type of currency that is typically issued by a private entity other than the government. It is used as a substitute for legal tender within a specific context or location. Token coins can take various forms, including metal coins, wooden or plastic tokens, or even digital currencies.
Unlike legal tender coins issued by the government, token coins do not hold any inherent value and are not considered as a form of official currency. They are generally issued to facilitate transactions within a specific environment, such as amusement parks, arcades, public transportation, or casinos, where they serve as a convenient and standardized medium of exchange.
The denomination of token coins may vary, often being smaller than regular currency units, and is typically determined by the issuing entity based on the requirements of the specific system or industry. In some cases, token coins may have distinctive markings or designs to indicate restrictions on their usage or validity.
Token coins have a limited circulation and are usually redeemable within the system they were issued for, such as returning them to the respective establishment in exchange for goods, services, or legal tender. While token coins are not universally accepted as legal payment, they play a significant role in streamlining transactions in specific sectors and serve as a practical alternative to using official currency in certain environments.
Etymology of TOKEN COIN
The word "token" comes from the Old English word "tacen", which means a sign or mark. In the context of coins, it refers to a small object or disc that represents or stands for a particular value. The term "coin" has its roots in the Latin word "cuneus", meaning wedge, which originally referred to the shape of early metal coins. Together, "token coin" refers to a small disc or object that serves as a substitute for or represents currency or monetary value.
