Glossary

Coin Clipping

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Coin clipping is the practice of physically shaving down or clipping metal coins as a form of taxation. Coin clipping was practiced by many ancient empires, and it is an early example of currency debasement.

Coin clipping degrades the fungibility of a currency. When some coins are clipped more than others, they necessarily contain different amounts of the underlying metal which gives them value.

Key Fact: Most modern coins have ridged edges to prove that they have not been clipped.
Most modern coins have ridged edges to prove that they have not been clipped.

a comparison of coins that have been unclipped, semi-clipped, and clippedCoin clipping was eventually abandoned as a method of tax collection, but the practice of debasing a currency has persisted. Today, governments simply create more paper or digital currency to fund their endeavors and devalue the existing currency held by citizens.

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