The evolution of money
In 7th century B.C Rome, coins were minted near the temple of the goddess Juno Moneta, which gave us the words 'mint' and 'money'. Money has been a sacred possession for centuries, but has been difficult to keep secure. It might be true that 'money makes the world go round' and that everyone wants their hands on it. In today’s world, there are even many songs about money where singers celebrate their wealth.
Today’s modern world is continuously changing where money has now become digitalised, security is being refurbished and cash is now mainly dealt online and through apps. Many stores including charitable organisations have no cash policy and only take card payments causing the number of note circulation to decline which increases security risk. Digitalised money is now controlled more by the government who can allocate according to an individual’s digital footprint.
What is money now?
Society has transformed money into something holy, it is almost seen as something to be worshipped and praised. I’m sure you have seen your favourite rapper throw cash in the air, celebrating their wealth. Nowadays, money has evolved and becoming more digitised. Technology, smartphones, and the internet are continually evolving, making it fast and easy to manage finances. When money first printed into plastic, it was difficult for individuals to adjust to this type of cash handling method. But ever since security has adapted, the population has felt more secure and now more individuals easily utilise digital money.
The expenditure of money Is mainly dealt with via bank transfer. It is still a tangible asset like other commodities such as cash and oil. Monetary transactions make dealing with money flexible, easier, and rapid. Monetary policies can also be at ease through the implementation of central banks.
Examples of digital currencies include:
Central bank digital currencies
Cryptocurrencies are commonly utilised. It is digital currency that is designed using cryptography. There is a crypto wrapper providing top security which allows transactions to not be tampered with. The most common cryptocurrencies we see and invest in are bitcoin and Ethereum. In fact, the market cap of cryptocurrencies had reach £2 trillion and seen to increase.
When money is digitised, there is no need for safekeeping and physical storage. You do not need to keep it with you, which eases the stress of cash being stolen.
Through the implementation of monetary policies, digital cash eliminates the intermediaries which makes it easy to include groups of people that have previously been excluded from the economy.
Through advanced technology, digital money makes accounting and record keeping easier. Therefore, manual accounting does not necessarily need to maintain any records of previous transactions.
Although there are enhanced security policies and software, digital cash is extremely susceptible to hacking. Many individuals have extreme intelligence in technology and digital money is a prime target for hackers to steal from digital wallets. Furthermore, digital cash comes with a set of costs. Digital money is stored in digital wallets and cryptocurrencies require custody solutions which make it safe against hackers. Blockchains are used in various systems which come with a transaction fee some cost that come with processing the transaction to individuals under the age of 18.
As cash has no name, it is impossible to track and trace who it belongs to. Organisations, governments, and banks can block and freeze an account without the cash owner’s permission. They may also implement double accounting increasing the increasing the inflating expenses and decreasing the overall cash total.
Digital cash is a great innovation in relation to financial technology. It eliminates the issues with money and makes payment transactions faster and overall cheaper. However, there can be traces of hacking and can cause privacy issues. Cash is still relatively new and will continue to evolve. No matter how it evolves, it will stay play a major part in society and future finance. Cash will always remain king.