Ron Paul advocates the abolition of legal tender laws to allow competing currencies. But what exactly are legal tender laws?
According to Wikipedia:
“Some jurisdictions may forbid or restrict payment made other than by legal tender. For example, such a law might outlaw the use of foreign coins and bank notes or require a license to perform financial transactions in a foreign currency.”
But tit also says that payments can be made in other currencies when this is specified in the contract. So which is true for the US and/or the EU? What would be different without the legal tender laws?