Why did the token currency experiment of Muhammad-Bin-Tughlaq fail?

It failed because the state could not prevent the widespread forging of copper coins, leading to massive inflation and a loss of trust in the currency.

Muhammad-Bin-Tughlaq's Coinage | UPSC History

Q: Consider the following statements: **Assertion (A):** Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. **Reason (R):** Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries. ** Code:**

Assertion (A) is true; Tughlaq did issue a gold Dinar. Reason (R) is false; his token currency experiment used copper/brass, not gold, and was due to metal shortages.

ID: ART_MIS_2006_19 Ref: Our Pasts - II

Consider the following statements: Assertion (A): Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. Reason (R): Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.

Code:

Consider the following statements: Assertion (A): Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. Reason (R): Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.**Code:**

Consider the following statements: Assertion (A): Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. Reason (R): Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.

Code: