The main aim of Money is Fungible: Safeguard the Character of Exempt Assets: Its nature permits it to circulate freely. The lack of salability, however, can be detrimental. This lack of salability can lead to problems when it is used as a medium of exchange. Menger noted that a population will choose the most marketable good as a medium of exchange. This process generates a positive feedback loop, which increases demand for the good.
Why Need Safeguard the Character of Exempt Assets When Money is Fungible?
According to the UK Treasury, money is fungible because it is transferable. Moreover, it is a widely used regulated product. In addition, consumers might expect cryptoassets to retain a stable value. Nonfungible tokens, on the other hand, have less interchangeability and are difficult to predict value. These characteristics make money fungible. A cryptocurrency can be fungible or nonfungible, as long as it has a limited supply.