1. the quality of being interchangeable or replaceable with another identical item of the same kind and value
Usage: commonly used in law, economics, and commerce

Examples

• The fungibility of money makes it easy to exchange one dollar bill for another.
• Gold bars have high fungibility because any bar of the same weight and purity can replace another.
• In contract law, fungibility determines whether goods can be substituted without loss of value.
• Cryptocurrency advocates argue for the fungibility of digital coins in peer-to-peer transactions.
• Unlike fungible commodities such as wheat, a rare painting lacks fungibility.
• The fungibility of oil means that crude from different sources can be mixed and traded interchangeably.