What Is Minting?

What Is Minting?

Minting is the process of manufacturing coins using stamping generally known as “coining” in metalworking.

The stamping usually refers to the identity of each country.

King of Lydia

Croesus (King of Lydia) was the first king to mint coins (600-610 BC). Lydia is located in Asia Minor (currently known as Anatolia), and was named after its ruler Lidius.

In short, minting is the process of converting a non-income item into cash, in addition to giving it a specific value and legal status.

The “Lydian Lion” was the first coin to be minted, and a lion’s head was stamped on it as a sign of power.

Image of Lydian Lion according to historical research

The Lydians were the first people to mix gold and silver in one coin (the mixture of them is called ‘electrum’).

Some historians said a single Lydian coin was equal to the price of 11 sheep. Meanwhile, others said it was equal to the price of one sheep.

The first banknote

The first banknote was issued in 690 AD, and was then circulated until 1279 AD in Sichuan Province, China.

With the onset of currencies, the counterfeiting spread widely, which prompted the government to establish an entity to oversee it.

To reduce counterfeiting, the currencies are stamped with special seals.

In the previous capsule, we defined the currency as a means used in the exchange of commodities. It may be either a banknote or a coin issued generally by the government. It is accepted at its face value as a method of payment.  

In addition, the currency is a premier means of exchange in the modern world. It has long replaced barter as a means for exchanging commodities and services.

The currency, in its different forms, was used almost 3000 years ago. It proved its significance in facilitating trade across continents.

The currency is a generally-accepted method of payment, and is usually issued by the government within its jurisdiction.

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