What is a Liberty Dollar?
The Liberty Dollar was a private currency created by the nonprofit organization NORFED (National Organization for the Repeal of the Federal Reserve Act and Internal Revenue Code). It was designed to compete with government-issued fiat currencies, such as the US dollar. The currency was launched in 1998 as an alternative form of money that would be backed by gold or silver.
The Liberty Dollar used both physical coins and paper certificates to represent monetary values, which could then be exchanged between individuals and businesses in much the same way as traditional national currencies are exchanged today. The value of each certificate or coin was based on its equivalent worth in ounces of either silver or gold at any given time. The value could also fluctuate based on market conditions just like other forms of money.
Liberty Dollars were not considered legal tender but rather a type of voluntary barter system that allowed members to trade goods and services without using fiat currency from banks or other financial institutions. Although it did gain some traction when it first debuted, it eventually lost momentum due to federal investigations into whether this alternative form of currency violated laws against counterfeiting US dollars. As a result, production ceased in 2009 and all remaining coins were removed from circulation shortly thereafter.
