Yap and the Stone Currency

yapYap is an island in the Pacific Ocean within the Caroline Islands with a population of around 10,000. Despite being a tiny country which you have probably never heard of before, Yap teaches us some important lessons on the functions of money. That is because money on the island consists of large stone discs, made from limestone and shipped from an island a few hundred miles off the coast of Yap, called Rai. They made Rai there money which they would use for expensive transfers, such as for their daughters dowry. Because Rai is made from limestone it is a mix between fiat money and commodity money. [...]