On Yap, a remote Micronesian island, giant calcite Rai stones once served as currency, proving that wealth can hinge on collective trust rather than physical possession. In the latest episode of *The Story of Money*, macroeconomist Felix Martin joins hosts Gillian Tett and Robin Wigglesworth to unpack how these stones shaped concepts of value today.

The discussion moves beyond the quaint barter myth, arguing that true money relies on social contracts that can be verified without ownership records. Martin cites Yap’s system as evidence that a community’s confidence can create a stable medium, a lesson that modern digital currencies and central bank initiatives must heed for investors and policy makers.

Listeners learn that the Rai stones’ value was never stamped on the stone itself; it lived in the islanders’ shared acknowledgment. This insight challenges firms that equate token value solely with blockchain proof, suggesting that reputation and governance may ultimately dictate worth in emerging financial ecosystems for investors and startups today again they must understand.

The episode underscores that currency is as much a psychological construct as a physical one. By revisiting Yap’s stone money, Martin reminds policymakers that building trust is cheaper than building new technology. Firms eyeing tokenization should focus first on the social contracts that underpin any digital asset’s acceptance for investors and businesses in today's market.