Everyone is interested in one thing, and that is money. Everyone knows that with money comes power and the luxuries of life. No one can possibly not think about money any given day. Any human who is out there working needs something in return, and it is not just intangible assets such as respect or status, but money. Earning tons of money is the ultimate goal at the end of the day. And in today’s world, where there is already more than one form of money, how can people ignore to think about the future of it?
The hot topic for today’s world in the financial industry is what is the future of money? But to derive how the money will work in the future, it is important to understand how money works today! It is important to understand the few basic functions of money! So what are the basic functions of money? It is very easy to determine! It simply means, what does money provide the people who use it! So in any part of the world, money has one main function, it is to facilitate the transaction with a certain value. Now this point could be broken down. And after breaking it down, it is noteworthy that there are three main functions of money, and they are – to provide a unit of some product with some value, to store it in some kind of value, and to use it as a medium for exchange. Before money came into the scene, the world did not know how to trade fairly. Anyone would trade with someone only when they need something the other person has, and they would only be able to complete the trade when the other person needs something the first person had. This is called double coincidence of wants or simply, barter system. But people recognized that it has to go because it made things so painstakingly slow, and it also sometimes resulted in no trade at all. People needed something that would have no value on its own, but if denoted with some value, and at the same everyone accepted it as the currency they can trust upon, people created money. Money has progressed through a lot of different forms. Earlier it used to be copper coins, gold coins, and silver coins. But now it is simply paper cash or coins that are of very little value individually.
Money also created a platform for people to get access to credit systems. Without money, it is hard to think of a credit system. How would people trust someone with any kind of transaction without money? It is hard to imagine. Money also provided a base for creating and processing information. Now whole economies depend on the money that is flowing in it and the value of it. Without money, how would any government be able to calculate any of the data it is needed to ascertain the level of economic activities that are going on in their respective country. And in this day and age, one of the best things about the world is its upgrading technology. Everyone is trying to develop new technologies for making things convenient for people. And the same is with money, there are many companies which have made the job of transferring money from one place to another so easy. Sure there are additional charges involved and the process becomes a little expensive, but it is worth it. The transferring process becomes so effortless, just by tapping a few times in one’s smartphone, they can transfer loads of money from one place to another or purchase anything sitting from their homes. Also, the debit and credit card technology has made it easier for people to carry money with them. Now no one is compelled to take huge amounts of cash with them to the store or the market if they want to purchase something which is expensive, they just need to carry one plastic card which has an electromagnetic strip and they can carry tons of money with them. All it requires is just a pin code to access the money. Sure these changes will take time to come. And even though it may feel like it has started, which it has, it will still take a lot of time for everyone in the world to be familiar with the e-money procedures or learn to use new money technologies. Governments will have to put special efforts into educating and making people aware of the same.