Definition
fungibility
noun
- the quality of being interchangeable or replaceable with another identical item of the same kind and value
Usage: commonly used in law, economics, and commerce
Examples
- The fungibility of money makes it easy to exchange one dollar bill for another.
- Gold bars have high fungibility because any bar of the same weight and purity can replace another.
- In contract law, fungibility determines whether goods can be substituted without loss of value.
- Cryptocurrency advocates argue for the fungibility of digital coins in peer-to-peer transactions.
- Unlike fungible commodities such as wheat, a rare painting lacks fungibility.
- The fungibility of oil means that crude from different sources can be mixed and traded interchangeably.