Dollar coins (loonies)in the modern economy serve as money because

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Loonies serve as money because people have confidence that others will accept them as a form of payment. This confidence arises from the fact that the government has declared loonies to be legal tender, and they are widely recognized and accepted as a medium of exchange. Unlike commodity money, such as gold or silver, loonies do not have any intrinsic value beyond their use as a means of payment. Therefore, their acceptance as money depends entirely on people's faith in their ability to be used as a medium of exchange.

Dollar Coins (Loonies)in the Modern Economy Serve as Money Because