Coinage Systems

Coinage systems are the formal methods a country uses to create, organize, and manage its currency for trade and everyday transactions. They define the types, denominations, and values of coins and sometimes banknotes, ensuring consistency and trust in the monetary system. Typically, a coinage system includes a hierarchy of coins—such as pennies, nickels, dimes, and dollars—each with a set value. Governments or central banks oversee these systems to maintain economic stability, prevent counterfeiting, and facilitate efficient commerce within the country and internationally.