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Commodity-backed Currency

Definition
A currency that is issued based on an underlying physical commodity that is widely acknowledged as having intrinsic value. Gold and silver were the most common commodities used to back a currency, although other goods such as tobacco have been used historically. Today, all developed nations use some version of fiat currency. However, the Australian and Canadian dollars are still sometimes referred to as commodity-backed currencies since these countries have significant resources of un-mined gold.

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