Modern Money is a term used to describe the current monetary system, which is based on fiat currency and is not backed by any physical commodity. The most common forms of modern money are the ECU (European Currency Unit), Euros, and Euro. The ECU was a basket of European currencies that was used as a unit of account in the European Union until it was replaced by the Euro in 1999. The Euro is the official currency of the European Union and is used by 19 of the 28 member states. The Euro is divided into 100 cents and is the second largest reserve currency in the world. The Euros are the physical notes and coins that are used to make payments in the Eurozone.