fiduciary money

The same went after 1683 for the Bank of Amsterdam when its receipts for foreign coin and bullion were accepted as fiduciary money.

But gradually currencies come into use that are not so convertible, i.e., "fiduciary money" or fiat money which relies on social trust that people will honor their transactional obligations.

These kinds of fiduciary money rely not on the value of money-tokens themselves (as in commodity money), but on the ability to enforce financial claims and contracts, principally by means of the power and laws of the state, but also by other institutional methods.