In response to one of the most severe episodes of hyperinflation in history, the Weimar Republic introduced the Rentenmark in October 1923. Following World War I, Germany faced enormous reparations payments and significant economic instability. The hyperinflation crisis reached its peak in 1923, with the value of the Papiermark evaporating daily, leading to prices rising uncontrollably and a loss of public confidence in the currency. In a drastic move to stabilize the economy, the German government enacted laws to establish the Rentenmark as a temporary currency, which would serve as a stabilizing measure until a new permanent currency could be introduced.

The Rentenmark was unique because it was not a fiat currency; instead, it was backed by valuable assets, including land and industrial resources. This backing gave it intrinsic value, allowing it to gain the trust of the German populace. The government set the exchange rate such that one Rentenmark equated to one trillion Papiermarks, effectively allowing for a fresh start. The introduction of the Rentenmark involved restructuring Germany's monetary policy and economy, and banks began accepting the Rentenmark for transactions, further legitimizing its use in everyday commerce.

By stabilizing the economy and curbing hyperinflation, the Rentenmark facilitated a gradual recovery of the German economy. Though it was intended as a stopgap measure until the introduction of a new permanent currency, the Rentenmark laid the groundwork for the later adoption of the Reichsmark. The successful implementation of the Rentenmark is often credited as a significant turning point in restoring both economic stability and the credibility of the Weimar Republic among its citizens and international stakeholders.