Money vs Currency

Updated on January 30, 2024
Article byHarsh Katara
Reviewed byDheeraj Vaidya, CFA, FRM

Difference Between Money vs Currency

Currency and money are the two words used in our everyday lives, often confused as being a similar things. The terms money and currency would appear to be similar, but they are not. Further, they are sometimes used interchangeably in several scenarios. Several different theories suggest how currency and money are separate from each other. However, several theories also state the things as bad money and good money. You can consider good money like gold, silver, etc. On the other hand, bad money can be regarded as currency. That is often confusing now. Let us try to return to the basics.

The coins and bills that one may carry with oneself are not technically money but are currency. Most likely, they are a kind of fiat currency or currency that has no intrinsic value. In the past, rare metals like silver and gold were considered money, but today’s money has become far more intangible and is defined by the functions that it can fulfill.

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Let us now define money as the medium of exchange, value store, account unit, and payment standard.

In this article, we will discuss the key differences between money and currency.

Money vs Currency Infographics

Here, we provide you with the top 6 differences between money and currency:


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Money vs Currency – Key Differences

The key differences between money and currency are as follows:

  • The major difference between money and currency is that money is entirely numerical, i.e., it is only intangible, which one cannot touch or smell. In contrast, we can feel currency and smell, and it is tangible.
  • Check, online mode, etc., are all the types of money stated earlier. All that is in hard currencyHard CurrencyHard currency is a type of currency issued by countries that all investors and nations can rely on. read more, whether coins or currency notes, can be considered a currency, although those also represent numbers.
  • One needs to print currency to have them in plenty, and it is obvious it is the work of the government. In contrast, there is no requirement to print money as intangible and can only be seen as numbers. For example, when you shop online and purchase any product, you must enter your bank details. You would notice transferring numbers from your bank account to the merchant’s account.
  • Money is comparatively easier to be traded for a commodity or any service. In comparison, currency, however, is also easy to exchange. Nevertheless, it does carry the small inconvenience of maintaining the same with oneself. When exhausted, you need to go to a bank and withdraw.
  • Currency can be termed as that money that brings the latter to life.
  • Currency must be in circulation to be traded and grow. At the same time, money is intangible and can be easily circulated anywhere.
  • Currency has its limitations. When one travels or changes the country, the physical currency needs to be exchanged for that country’s cash as none of the countries have the same currencies; they all print their currency. Money gets easily converted into another currency using the exchange rate facility, again a number.
  • We can exchange a fiat currency for services and goods, but in the end, it has no intrinsic value. In contrast, soft money has inherent value.
  • In earlier days, the government used to print currency by backing the same with gold and silver, and for money, it would require no such thing.

Money vs Currency Head-to-Head Differences

Let us now look at the head-to-head differences between money and currency.

Basis – Money vs. CurrencyMoneyCurrency
Basic DefinitionOne cannot touch or smell money. However, money can be seen in numbers.Currency is the promissory note or coin presented in the form of money.
Concept TypeMoney is an intangible concept.Currency is a tangible concept.
Basis FormMoney takes the form of numbers.Currency takes the form of hard plastic or coins or says the currency notes.
Support Many different things back the money. For example, if one possesses money in a bank account, a cheque (kind of money) would be supported.Fiat money is the currency backed by that country’s government.
ExamplesOnline mode, check savings bank account, etc.Coins, Hard currency notes, etc.
Transfer Mode One can transfer money through an online method.One must transfer currency via physical, i.e., hand-to-hand transfer.


This article is a guide to Money vs. Currency. We discuss the top 6 differences between money and currency with infographics and a comparison table. You may also have a look at the following articles: –