Revolutionary France issued assignats during the 1790s, backed initially by confiscated church lands.
The French National Assembly authorized assignats in 1789 as interest-bearing notes secured by biens nationaux, or “national goods.” These properties included lands seized from the Catholic Church after the Revolution. The notes were first intended partly as a way to raise funds while property was sold.
The government later issued assignats in much larger quantities and made them legal tender. Excessive issuance, political instability, shortages, and declining confidence contributed to severe depreciation and inflation. By 1796, the assignat had effectively collapsed and was replaced by the mandats territoriaux, which also failed.
Assignats are different from the franc, which the revolutionary government introduced as France’s basic monetary unit in 1795. The assignat was primarily a paper note and financial instrument, whereas the franc became the longer-lasting currency system.