Nations that employ such a fixed unit of account, and which will redeem their notes to other nations in gold, in principle, share a fixed currency relationship. The intent is to create a system that is resistant to runaway credit and debt expansion, and to enforce a system where money cannot be created through government fiat currency, and will, therefore be safe as an alternative store of value against inflation. This is intended to remove currency uncertainty, keep the credit of the issuing monetary authority sound, and encourage lending.

The use of gold as a monetary standard has a long and varied history, from the period of time when coinage was the primary means for regulating money supply, all the way through the 20th century, where it was used to regulate international trade flows. Despite having advocates, the gold standard is no longer used in any nation, having been replaced completely by fiat currency. It is however a principle used by private institutions in the supply of digital gold currency, which use gold grams as money.

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