Do you people know what token currency is? If no, it is banknotes and coins, the common thing today. But, in Indian history, there is a recorded chapter of a king called Muhammad bin Tughluq having token currency.
He introduced bronze coins, which had value equivalent to the silver coins. This plan turned into a disaster as he failed to issue a notice informing the people that only the treasury could mint coins, and that is why every household in the state turned into a mint. People started paying the taxes in the new currency, and foreign traders to India lost faith in the currency. I will not continue further, but I want to just leave you with a thought-
Why did traders lose faith in the currency; even though the new coins had equivalent value to the silver coins? Was it because of the metal?
He introduced bronze coins, which had value equivalent to the silver coins. This plan turned into a disaster as he failed to issue a notice informing the people that only the treasury could mint coins, and that is why every household in the state turned into a mint. People started paying the taxes in the new currency, and foreign traders to India lost faith in the currency. I will not continue further, but I want to just leave you with a thought-
Why did traders lose faith in the currency; even though the new coins had equivalent value to the silver coins? Was it because of the metal?
