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.
Table of Contents
1. Introduction
1.1 Research Problem
1.1.1 Problem statement & limitation
1.1.2 Research question
1.2 Structure of the report and methodology
2. Main Part
2.1 Cost of Money
2.1.1 Society and the individual
2.1.2 Business
2.2 Global initiatives
2.2.1 Australia
2.2.2 Canada
2.2.3 France
2.2.4 Sweden
2.2.5 Kenya
2.2.6 Nigeria
2.2.7 South Africa
2.2.8 Conclusion
2.3 Different trends
2.3.1 Digital Currency
2.3.2 Electronic Wallet
2.3.3 Trading using informational technology
2.4 Advantages and Disadvantages of becoming a cashless society
2.4.1 Advantages
2.4.2 Disadvantages
2.5 Influences on Business
2.5.1 Influence on technology and software engineering
2.5.2 Retail
Research Objectives and Themes
The report aims to provide an in-depth analysis of the global shift toward a cashless society, examining how various nations implement cashless initiatives and evaluating whether the systemic benefits of such a transition outweigh the associated risks and disadvantages for individuals and businesses.
- Evolution of monetary systems and the "cost of money."
- Comparative study of global cashless initiatives (e.g., Australia, Canada, Sweden, Kenya).
- Analysis of emerging e-payment trends like digital currencies and electronic wallets.
- Evaluation of the socio-economic advantages and the risks of cyber/physical crime.
- Impact assessment of cashless systems on retail and software engineering sectors.
Excerpt from the Book
2.4.1 Advantages
The black market is an economic "place" where through money illegal services and products can be received. The money that is used aren't paid any taxes, nor something similar on - black money (BusinessDictionary, n.d.).
It can easily be imagined what benefits no-cash policies bring regarding black market activities. The money circulating on the black market, black money, will totally lose its value. Money laundering, is just one example on black market activities, will totally lose its meaning in existence (TheFreeDictionary, 2013). The result could be a "crash" of the black market, re-investing black money is impossible.
A movement towards getting rid of cash money could in total be a big strike against physical crimes. A good example is the dropping bank robbery rate in Sweden.
(See country initatives 1.2.1 Sweden).
Any kind of online or electronic transaction can be compared with touching anything with a finger. It leaves fingerprints. Same with the real finger prints, online "finger prints" can be backtracked easily to the owner. Tax evasion, corruption such as smuggling probably will become unpopular very quick. Sweden can be used as an good example. Corruption problems shrunk since Sweden reduced the usage of cash money (Simon Tomlinson, 2012).
Summary of Chapters
1. Introduction: Discusses the historical evolution of money from bartering to fiat currency and introduces the research problem and methodology.
2. Main Part: Analyzes the economic costs of cash, reviews global cashless initiatives, categorizes e-payment trends, and evaluates the pros and cons of moving toward a cashless society, specifically focusing on the retail and software sectors.
Keywords
Cashless Society, Digital Currency, Electronic Wallet, Cost of Money, Financial Technology, E-Payment, Retail Efficiency, Cyber Crime, Monetary Policy, Banking Fees, Black Market, Cashless Initiatives, Software Engineering, Consumer Privacy, Economic Development.
Frequently Asked Questions
What is the primary focus of this research?
The report examines the ongoing global transition toward a cashless society, focusing on how different countries manage this shift and its impact on the economy, crime rates, and business operations.
What are the core thematic areas?
The main themes include the history of monetary systems, the "cost of money," the role of government policy in curbing cash usage, the rise of digital payment technologies, and the socio-economic implications for individuals and businesses.
What is the central research question?
The study asks whether the advantages of a cashless society outweigh the disadvantages and how this shift influences society and business sectors.
Which methodologies were applied?
The research relies on secondary literature, academic evidence, and analysis of current global developments and trends gathered from resources such as Google Scholar.
What does the main body of the paper cover?
It covers the definition and costs of money, case studies of specific countries (like Sweden, Canada, and Kenya), an overview of e-payment trends, and a balanced discussion on the benefits versus the risks of a cashless economy.
Which keywords best characterize this work?
The key concepts include Cashless Society, Digital Currency, E-Payment, Economic Development, and Cyber Crime.
How does a cashless environment impact the retail sector?
It reduces costs associated with cash management, such as shrinkage and labor, while potentially increasing consumer spending through the convenience of electronic transactions.
What is the role of the software industry in this transition?
The software industry is identified as a critical driver that builds the infrastructure for electronic payments and is tasked with finding technical solutions to mitigate cyber security risks.
What are the primary concerns regarding privacy?
The transition toward cashless policies risks increasing government surveillance and control, which critics argue may lead to a loss of individual anonymity and a decrease in the perceived security of the consumer.
Why is the "cost of money" a key argument for a cashless society?
Cash incurs significant systemic costs, including printing, transport, security, and administrative handling, which can be drastically reduced through digital payment infrastructures.
- Quote paper
- Henrik Fürst (Author), 2014, A world becoming cashless. Description and analysis, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/353528
