A currency’s durability is one key aspect to its success as a form of money. We usually think of durable money in terms of precious metals or specialized materials, specifically created to be tough and nearly indestructible. However, throughout history we can see examples of currencies that are not only indestructible, but edible. Tea, cocoa, and spices, for example, were a common currency in the past. Salt was a hugely widespread currency even in the ancient world. Today, most first-world currency has moved beyond consumable material for currency. However, in Italy, some banks have a different approach. "Credito Emiliano, a bank in Italy’s Emilia-Romagna region, offers loans in exchange for uniquely Italian collateral: golden wheels of Parmigiano-Reggiano cheese...All told, these assets are reportedly worth around €190 million" (Saladino).
Even though items like cheese are not as durable as metals or paper, the fact that a cheese is considered so valuable that it can be used as a form of currency speaks volumes about Italian culture. Although the value of the cheese can fluctuate wildly, such as in times of crisis when expensive cheese becomes an inessential luxury, in general I find it fascinating that such a unique material could continually function as an effective form of collateral and currency. This method of banking would almost certainly fail in the United States, and could really only be effective in such a unique culture as Italy. I would be curious to see how the usage of cheese as collateral affects the country’s economic speed of circulation, and whether there are other edibles which could potentially be considered by Italy as having similar economic potential.
https://vinepair.com/articles/cheese-bank-italy/
This kind of stuff is great, it shows the wonderful diversity and creativity of the human mind.
Good post! It is crazy to see how much and what we can use for currency. In different countries everywhere, almost anything can be traded or used as currency, not just money. I guess the more aged the cheese the more valuable?
Very interesting post! It is intriguing to think about how different places have different commodities in demand; like how in prisons tobacco is used as a form of currency, or as you said, cheese is one in Italy. Makes me wonder what the United State's form of this would be...what do American people value the most besides money that they would accept it as a substitute and form of currency?
Josh,
Fantastic post! I was in Italy for a little over the summer and had the opportunity to eat a lot of Italian food, including a variety of different cheeses (all of which was delicious;). It's been really interesting learning about the various things people used and still use as currency. And you're absolutely right, cheese as loan collateral is something you could only pull off it Italy. Again, great post!
Sean
Wow, that's pretty cool. Very "cheesy" but If it works it works. So with cheese being equated with money as a form of currency, are people allowed to eat it? Also, what happens if the cheese expires?