Discussion Paper

A brief history of bank notes in the United States and some lessons for stablecoins


Abstract: Prior to the establishment of the Federal Reserve, commercial banks issued "bank notes" that circulated as a privately issued form of money. In addition to being backed by the issuing bank, these notes were backed by various types of collateral, including state government bonds and U.S. government bonds.

https://doi.org/10.17016/2380-7172.4001

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-02-06

Number: 2026-02-06