Chartalist money

Chartalist money is state backed money. The term comes from the Latin word "charta", meaning a ticket or a token that may be accepted as payment, but which do not have intrinsic value. The Chartalist theory of money defines money as a creation of the government and as having value in exchange because sovereign power requires taxes to be paid on the money they issue. Furthermore, Chartalists understand money originating historically with states' attempts to direct economic activity rather than as a spontaneous solution to “coincidence of wants” or as a means with which to tokenize debt. Paved way for Modern Monetary Theory (MMT).