fungibility

American  

[fuhnj-uh-bil-i-tee] / ˌfʌndʒ əˈbɪl ɪ ti /

noun

1. the quality or fact of being fungible.

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Other Word Forms

• nonfungibility noun
• semi-fungibility noun

Explanation

Fungibility is the interchangeable nature of something, like the fungibility of money — you can trade a ten dollar bill for two fives, and you've still got the same amount of cash. The noun fungibility is most often used in economics, to talk about money, gold, stocks, bonds — any commodity or good whose individual units can be swapped or exchanged evenly. Gold's fungibility means that you can trade a nugget for a gold coin, as long as both contain the same amount of gold. The Latin root is the phrase fungi vice, "serve in place of."

Example Sentences

Citi analyst Tyler Radke wrote in a Sunday note that Oracle’s data-center buildout is designed with fungibility in mind, meaning that the infrastructure can be repurposed for different uses.

From MarketWatch • Dec. 15, 2025

“Nvidia offers greater performance, versatility, and fungibility than ASICs, which are designed for specific AI frameworks or functions.”

From Barron's • Nov. 26, 2025

We have a lot of speculators in the fungible token space, just meaning the Bitcoins and the Ethereums of the world — fungibility, long story short, just means interchangeable.

From The Verge • Feb. 22, 2022

It proposes a fungibility of matter and consciousness that’s both horrific and transcendent.

From Los Angeles Times • Jul. 7, 2021

European and U.S. cash equities markets are "horizontal" in that securities can trade on any venue -- called fungibility -- and they are cleared on separate entities such as London-based LCH.Clearnet.

From Reuters • Sep. 14, 2011