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Legal Tender

Legal tender is a legally recognised medium of payment that can be used to meet financial obligations or extinguish debt. In many countries, coins and paper currency are legal tender. However, what is regarded as legal tender varies. 

Coins issued by the Royal Mint, including gold and silver bullion coins, are the only form of legal tender recognised throughout the UK, for example. 

Credit cards, personal cheques and other goods are not legal tender. Often, you will come across a bullion coin that is listed as legal tender backed by a government. Should you wish, you can use the coin as a legally recognised method of payment to settle debt in that country.