CREDIT MONEY

Any future monetary claim against an individual that can be used to buy goods and services. There are many forms of credit money, such as IOUs, bonds and money market accounts. Virtually any form of financial instrument that cannot be repaid immediately is considered credit money.

During the crusades of the middle ages, valuables and goods were held in trust by the Knights Templar of the Roman Catholic church. This led to the creation of a modern system of credit accounts that is still prevalent today. Public trust has waxed and waned in credit money institutions over the years, depending on economic and other factors.