The history of the evolution of money also shows how the human beings developed itself on a mental way. Starting with a so called "Barter economy" where for example animals like cows and sheep where used as kind of "currency" or rather "exchange product", years later going over to using shells as currency and finally ended up with money as we know it today,
as paper- and metal-money.
As mentioned, bartering where a common way of "paying", which basically means, that to receive some goods, you had to give some other goods. To avoid disagreements of the value of different goods, commodity money was invented. Commodity money were daily goods, like salt. That some commodity goods brought problems like the size or defensibility, was found out later. The Lydian's were the first folk, who invented coins. Decades later the Chinese were the first ones, who invented paper money. This invention of coins, named commodity money, quick became a worldwide used item. From now on, a "customers" needs could easier be fulfilled, since there was something that had a certain value.
By inventing the first representative money, the society especially in Europe where allowed to enter a totally new era. Banks created the first so-called currency market, international trade activities where possible and the value of a countries currency depended on its political behavior. During the 17th century, commodity money slowly got replaced by representative money, since global bank and trade networks were steadily increased.
Representative money is in form of paper bills or guarantees of the bank. Later the value of money for the first time was tied up to gold, the gold standard. Since the economy kept on growing, representative money got replaced by fiat money. Enforceable legal tender laws have been made, which basically means that the money's value is given by the governments decree and fiat. Free capital was invented. The growth of economic sectors was significantly fostered by this invention, but also the chance to make debts.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Research Problem
- Problem statement & limitation
- Research question
- Structure of the report and methodology
- Main Part
- Cost of Money
- Society and the individual
- Business
- Global initiatives
- Australia
- Canada
- France
- Sweden
- Kenya
- Nigeria
- South Africa
- Conclusion
- Different trends
- Digital Currency
- Electronic Wallet
- Trading using informational technology
- Advantages and Disadvantages of becoming a cashless society
- Advantages
- Disadvantages
- Influences on Business
- Influence on technology and software engineering
- Retail
- The evolution of money and its implications for economic development
- The costs associated with cash-based economies for individuals, businesses, and governments
- The emergence of global cashless initiatives and their impact on various countries
- The advantages and disadvantages of becoming a cashless society
- The influence of a cashless society on business and technology sectors
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report aims to provide an understanding of a cashless society and its potential impact on individuals, businesses, and society as a whole. The report explores how countries around the world are implementing cashless initiatives, analyzes the advantages and disadvantages of such a transition, and investigates the influence of a cashless society on different industrial sectors, including technology and retail.
Zusammenfassung der Kapitel (Chapter Summaries)
The report begins by outlining the history of money, demonstrating how its evolution has paralleled advancements in human thinking. The introduction delves into the transition from barter systems to commodity money and, ultimately, to fiat money. It highlights the critical role of trust in modern monetary systems.
The main part of the report focuses on the cost of money, examining the economic consequences of holding cash. It distinguishes between the costs faced by individuals and those faced by businesses. For individuals, the cost of money includes lost interest, bank fees, and the time spent engaging in transactions. For businesses, the costs are significantly higher, encompassing similar factors but also including risks associated with physical and electronic theft.
The report then presents an overview of global cashless initiatives, highlighting the experiences of various countries including Australia, Canada, France, Sweden, Kenya, Nigeria, and South Africa. It examines the different approaches taken by these countries and the factors driving their transition towards cashless economies.
Further chapters discuss key trends contributing to the rise of cashless societies, including the emergence of digital currencies, electronic wallets, and the use of informational technology in financial transactions.
Schlüsselwörter (Keywords)
The core concepts and themes explored in this report include the evolution of money, the cost of money, cashless initiatives, digital currency, electronic wallets, global trends, advantages and disadvantages of a cashless society, and the influence of cashless societies on business and technology sectors. These themes are further investigated through case studies of different countries implementing cashless policies and the examination of emerging technologies facilitating these changes.
- Arbeit zitieren
- Henrik Fürst (Autor:in), 2014, A world becoming cashless. Description and analysis, München, GRIN Verlag, https://www.grin.com/document/353528
