Researched
Central Bank & State Currency
The Bank of England (1694) makes a bank the guardian of the currency; the Fed (1913) and the ECB (1998) continue the model.
Open in the interactive tree →Central banks issue banknotes, steer interest rates and back banks in crises. With the end of gold convertibility in 1971, money became pure trust-based fiat money. This is the base of today's debates on digital central-bank money.
Prerequisites
- State & Administration~3000 BC
- Money~600 BC
- Paper Money~1000Central banks issue banknotes, the paper money invented in Song China
- Banks & Double-Entry Bookkeeping~1340-1494