Batki

Batki, or in singular, a batka , is a form of wooden currency used in Etrand, either in the forms of coins with intrinsic value or in the form of coin-shaped IOUs with no intrinsic value. It is important to note that batki aren't accepted by the royal authorities as legitimate currency, and aren't used in cities either - their usage is limited to local rural trade.

Batki exclusively function as local currency that doesn't have any legal status outside of the respective area where it is made (ground county, county, or even a single village) - it is completely nonexistent in urban areas, except as tokens by members of specific organizations (such as the Mages Guild) amongst each other.

Forms
Depending on the source material of the batki, it can take two forms: actual wooden coins, or coin-shaped IOUs.

Wooden coins
When batki are made out of more precious kinds of woods that are rare or have magical attributes (real or imagined), their intrinsic value can be the equivalent to that of metals like copper, iron, silver or gold - as such, wooden coins carved out of them hold a similar value to equivalent metal coins.

These kinds of batki have far more acceptance than its equivalent, due to the fact that they retain value even after the inevitable demise of whoever had them created.

IOUs
When batki are made out of regular, mundane types of wood, they hold very little if any intrinsic value. In these cases, batki act more like IOUs, a form of coin-shaped wooden banknotes, backed by a commodity like salt, wheat grain or hemp seeds.

These kinds of batki have far less acceptance than its equivalent, and are regularly only considered legal within one single county or village, created by the lord of the area, usually losing their validity after the death of the person who had them created. Such batki usually only remain in circulation with a few years, a decade at maximum.

History
The usage of batki in Etrand dates back all the way to the existence of Fathred's Confederation, when Fathred, in an effort to rival the currency of the Kingdom of Froturn, created a new form of wood-based currency made from a type of wood overwhelmingly found in Fathred's home region. The coins were backed by hemp seeds. Eventually, as Fathred's Confederation ceased being land-locked, Fathred changed batki to be backed by salt rather than hemp seeds. To give the wooden coins intrinsic value, they were laced with tree rasin to give them the appearence of amber.For further decoration, very often, the salt itself was mixed into the resin before the coin was laced with it, making the coin directly carry its salt backing.

After the fall of Fathred's Confederation, the various tribes that were left to rule over Etrand continued to issue their own batki for use in inter-tribal trade. The practice of including resin or any kind of amber ceased, tribes began using materials that were available at home. Most tribes would simply issue grain-backed or hemp-backed IOUs made from wood available at home. In fact, in many places, the usage of batki ceased completely, as there was very limited amount of literacy, compelling many to prefer trading directly in grain, seeds or salt. In Steelhelm, metal currency completely displaced batki.

After 200 BEKE, metal currency began to become less of a rarity in the rest of Etrand, and quite paradoxically or ironically, batki not only managed to coexist with it, but in fact made a major comeback. Once again, in a desperate attempt to compete with the metal currencies of Steelhelm, Hulra and Froturn, tribes began "minting" exquisite kinds of batki. When available, gems were glued to the coins to give them intrinsic value. Others made coins mixing amber and wood in a standardized fashion. Some made coins from special kinds of wood that belonged to trees that were believed to have magical properties (real or imagined).

After Corlagon's Wars of Unification, when the Kingdom of Etrand was founded, batki continued to be used. During the rule of the Corlagonid dynasty, the kings of Etrand believed that there was not enough gold and silver to properly support Etrand's growing economy - so they instead supported the usage of wooden IOUs backed by hemp seeds, wheat grain and salt - that's right, batki were accepted kingdom-wide as legal tender. The rule of the Hengistid dynasty saw the expansion of metal currency and the active suppression of batki - a failed policy that led nowhere. The new Tondbertid dynasty that followed them made laws concerning the usage of batki much laxer - no longer actively supressing their usage, but still accepting only metal currency when dealing with the government. During the late 3rd century AEKE, Etrand suddenly had access to massive untapped reserves of gold, as well as the previously existing dwarven mines and mints - suddenly, the country was experiencing a massive increase in the quantity of metal currency in circulation, rendering batki de facto obsolete, as metal currency has managed to penetrate even into the most remote rural areas.

The decentralization that happened in the last centuries of the Tondbertid dynasty's rule saw the reintroduction of batki as a stable local alternative to the ever changing-in-value royal coins. Etrand's newfound stability and unity under the Bryantid dynasty once again saw the decline of batki in favour of the "global" metal currency. In fact, during these times, even both gold and silver became so cheap, that many were turning for a new currency: gems. Naturally, this inflation meant that batki became even less viable outside of the localities where they were made and used. As of 831, even local rural taverns in Etrand expect payment in silver or gold, rather than batki or whatever batki is backed by.