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The Collaborative International Dictionary

monetization \mon`e*ti*za"tion\, n. The act or process of converting into money, or of establishing something (e.g. gold or silver) as the legal tender of a country; as, the monetization of silver.

Douglas Harper's Etymology Dictionary

1864; see monetize + -ation.


n. The conversion of something (especially metal) into money, the act of monetize.


n. establishing something (e.g. gold or silver) as the legal tender of a country [syn: monetisation] [ant: demonetization]


Monetization is the process of converting or establishing something into legal tender. While it usually refers to the coining of currency or the printing of banknotes by central banks, it may also take the form of a promissory currency (see text).

The term "monetization" may also be used informally to refer to exchanging possessions for cash or cash equivalents, including selling a security interest, charging fees for something that used to be free, or attempting to make money on goods or services that were previously unprofitable or had been considered to have the potential to earn profits. And data monetization refers to a spectrum of ways information assets can be converted into economic value.

Still another meaning of "monetization" denotes the process by which the U.S. Treasury accounts for the face value of outstanding coinage. This procedure can extend even to one-of-a-kind situations such as when the Treasury Department sold an extremely rare 1933 Double Eagle, the amount of $20 was added to the final sale price, reflecting the fact that the coin was considered to be issued into circulation as a result of the transaction.