Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution. Fungibility versus liquidity Fungibility is different from liquidity. A good is liquid and tradable if it can be easily exchanged for money or another different good. A good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place. Fungibility doesn't imply liquidity, and liquidity doesn't imply fun… (More on Fungibility)