Challenge: Reverse coins and currency

[tom]

Can you make coins be used for large denomimations (like dollars) and paper used for small denominations (like cents)?

[ChrisH]

Sales tax tokens and redeemable stamps (ration book, Green Shield, etc.) would probably be a good starting point for non-metallic small change.

The POD might be something like keeping currencies on a physical metal standard during the instability of the early 20th century: a hardcore 'show me the colour of your money' attitude takes hold or something. High denomination coins become actual physical stores of value, while small change works on a token system.

I've no idea what the ramifications and implications of such a move would be on the economics of the interwar period, but I think I hear Keynes, Mises et al weeping.

[Twin City Lines]

High denomination coins, made of precious metals, are highly feasible. I can easily see $5, $10, $20 in silver and $100, $500, $1,000 in gold.

Paper for low denominations, not so much so. A paper note costs about 2 cents to produce and doesn't last very long. The lower the denomination, the shorter the lifetime, because it changes hands more often.

That said, some countries have had paper-only systems, and China still has paper notes in denominations as low as 1 fen (1/100 of a yuan or about 0.15 cents US), though aluminum coins co-exist with notes for low denominations. For some reason, according to a travel guide I read (sorry, I don't remember which one), paper is more popular in some regions of China, and coins mostly circulate in cities with rail transit systems, presumably to operate ticket machines/turnstiles.