noun
legal currency; legal tender
Refers to money that is officially recognized by law as a valid medium of payment.
この国では、法定貨幣として日本円が使われている。
In this country, Japanese yen is used as legal currency.
通貨 is a broader term for currency in general, while 法定貨幣 specifically emphasizes its legal status.
Compound of 法定 (legal, statutory) and 貨幣 (currency, money).