fungibility
Sign in to saveIn economics and law, fungibility is the property of something whose individual units are considered fundamentally interchangeable with each other.
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Encyclopedic overview
14 sectionsContents
- The nature of fungibility
- Physical goods
- Securities and currencies
- Cryptocurrencies
- Relationship between fungibility and liquidity
- Other legal aspects
- United States
- Belgium
- Other uses of the term
- Tasking
- Quantum physics
- See also
- References
- Further reading
In economics and law, fungibility is the property of something whose individual units are considered fundamentally interchangeable with each other.
For example, the fungibility of money means that a $100 bill (note) is considered entirely equivalent to another $100 bill, or to twenty $5 bills and so on, and therefore a person who borrows $100 in the form of a $100 bill can repay the money with another $100 bill, with twenty $5 bills and so on. Non-fungible items are not considered substitutable in the same manner, even if essentially identical.
Excerpted from Wikipedia’s “fungibility” article, available under the CC BY-SA 4.0 licence.