ABSTRACT
Historically, most nation-states have sought to maintain a distinct currency that is both homogenous and exclusive within their territorial boundaries. Indeed, it is widely believed that these national currencies (or 'territorial currencies', as some authors prefer) are a clear indicator ofa nation-state's sovereignty. And yet, in the late twentieth century, it appears that national currencies are facing an increasing number of challenges. In Europe, for example, most member countries of the European Union have committed themselves to abandoning their national currencies in favour of a supranational currency. Elsewhere, the use of foreign currencies within national economic spaces is on the increase as evidenced by the growth of eurocurrency activity as well as extensive 'currency substitution' in many parts of the world. Privately issued sub-national 'local currencies' have also proliferated within many countries during the last decade and some predict the emergence ofprivate electronic monies in the future.
